MetLife proposes £5k per year 'mini-pension'

The vehicle proposed would provide 40% tax relief on contributions up to £5,000 per year and access to 25% of the fund every five years, MetLife said. It would allow savers to withdraw 5% of funds per year subject to marginal income tax rates, with a 10% penalty on higher withdrawals. However, the plan could only be funded by reducing the current annual allowance (AA) on pensions of £50,000 and limiting tax relief for top-rate taxpayers to 40% rather than 50%, the insurer said. Peter Carter, product marketing director at MetLife UK said: "The mini-pension is aimed at engaging indiv...