At long last, the Government appears to have listened to the pensions industry but some niggling doubts remain about how its plans will work in practice.
There are still plenty of uncertainties. Will those in DB schemes be able to roll over their annual allowance to cover unexpected spikes in accrual, as suggested by the Treasury? How will the limits announced today be affected by inflation in the coming years. Trevor Matthews, chief executive at Friends Provident, suggests it might be wise to "consider indexing both the £50,000 annual allowance and the £1.5 million lifetime allowance limit on an annual basis". Whatever the detail, IFAs dealing with middle-income clients are confident this will be a smooth ride for them. "I have no ...
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