PBR: Thousands face 55% pension tax

Standard Life says high earners are likely to take a double hit by paying more tax on their pension fund and income following today's Pre-Budget Report. Tax-free pension allowances will be frozen at £1.8m between 2010 and 2015, the Chancellor confirmed today, meaning those with a fund of more than £1.25m today could face a large tax bill upon retirement. Pension savings over £1.8m attract a hefty 55% tax rate upon retirement, and Standard Life estimates many pensioners will be hit by a surprise bill. A pension saver with a pot of £1.25m or more who achieves growth of 6.5% would be fac...