The government must get its pension priorities right, as the lifetime allowance (LTGA) abolition draws nearer, writes James Jones-Tinsley of Barnett Waddingham.
The Government has issued a new Financial Bill which includes the legal mechanism for the abolition of the pensions Lifetime Allowance (LTA).
The consultation on the draft legislation for the removal of the lifetime allowance (LTA) has now closed. The industry has given its views and now we have to wait and see what changes – if any – are made to the clauses published so far.
As Benjamin Franklin, one of the founding fathers of the US, famously said: “In this world, nothing is certain except death and taxes.” When it comes to the realm of pension saving in the UK this is certainly true.
Chancellor Jeremy Hunt shocked the pensions sector in his Budget today by announcing that he would 'scrap' the pensions Lifetime Allowance and increase the annual allowance from £40,000 to £60,000.
Over 325,000 people have successfully applied for protection against breaching the Lifetime Allowance, according to a Freedom of Information response.
The Pensions Lifetime Allowance is set to rise by £5,800 to £1,078,000 next year following news today of the latest CPI inflation rate of 0.5%.