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

Jenna Towler
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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...

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