Govt moves to cut top earners' tax relief will 'disincentivise retirement saving'

Jenna Towler
clock

Pensions minister Ros Altmann has confirmed the government's wide-ranging pension consultation will consider scrapping "regressive" tax breaks for higher earners amid warnings changes could "disincentivise retirement saving".

The pension tax relief green paper, announced in the Summer Budget, has called for radical thinking on changes to the current taxation system. The Chancellor used his speech to open dialogue on shifting the current system to one more like ISAs. Altmann, according to the FT, said the government is weighing whether to scrap the remaining special tax relief applied to higher earners pension saving. Commentators said pension saving for executives across the country could become unattractive as a result. Further reading: Pension tax relief review throws up 'huge policy issues' Weal...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

MPs warned against changes to salary sacrifice pensions

MPs warned against changes to salary sacrifice pensions

SPP says scrapping salary sacrifice would lead to reduction in employees’ take home pay

Martin Richmond
clock 07 November 2025 • 4 min read
'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'Selecting a SIPP provider should require a strategic inquiry into their fee structures'

James Floyd
clock 05 November 2025 • 4 min read
HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

Analysis finds savers have recouped more than £1.5bn since 2015 introduction of pension freedoms

Martin Richmond
clock 03 November 2025 • 4 min read