McPhail: £40k annual allowance may push public servants out of DB

Tom McPhail, head of pensions research at Hargreaves Lansdown, makes the prediction ahead of the Treasury announcement of the new annual allowance on Thursday. As part of a raft of pension reforms, the government is considering reducing the annual allowance from £255,000 to between £30,000 and £45,000. Last week, Lord Hutton's report on public sector pensions recommended a move from final salary pension schemes to career average schemes to cut costs to taxpayers, which would see many public servants lose thousands from their pensions. A new, lower annual allowance, McPhail says, co...