Lifetime cap to bite young savers, research

A report in the Telegraph suggested teachers, accountants and other white-collar workers aged 35 today could be affected if they contribute to a pension over the next two and a half decades. Currently savings of up to £40,000 a year qualify for tax relief, but there is an upper limit of £1.25m over the lifetime of a pension pot, following which a tax charge of 55% applies. The limit has been cut several times since its introduction in 2006, falling from £1.5m in April last year, following a reduction from £1.8m in 2011. Even if the allowance is frozen for the next 25 years, it will...