'Scrap pension tax relief altogether' - Hargreaves Lansdown

Proposals will motivate the young - Tom McPhail

Tom Ellis
clock • 2 min read

Hargreaves Lansdown has called for sweeping changes to the structure of the pension system ahead of next month's Autumn Statement, proposing the government scraps pension tax relief and replaces it with a bonus system to help motivate young savers.

With a view to dropping the current system, the firm has proposed a ‘100 minus age' system where the government provides a percentage bonus on top of pension contributions equal to 100 minus the age of the contributor.  As an example, a 25-year-old would receive a 75% top-up on their contributions while a 50-year-old would receive a 50% bonus. "We particularly like the fact there's a motivational dimension to it," Hargreaves Lansdown head of retirement policy Tom McPhail said. "There's a very clear motivational message to get on and do it now. It will still be a good deal next year, but ...

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

FCA non-advised pension transfer plans branded 'anti-consumer'

FCA non-advised pension transfer plans branded 'anti-consumer'

AJ Bell blasts FCA’s plans as ‘worst kind of regulatory intervention’

Jenna Brown
clock 23 February 2026 • 3 min read
Advisers search for more than 100,000 pension transfers via Origo

Advisers search for more than 100,000 pension transfers via Origo

In first year

Isabel Baxter
clock 23 February 2026 • 1 min read
Pension consolidation deserves more respect than it gets

Pension consolidation deserves more respect than it gets

'For me, pension consolidation is a perfect illustration of why financial planning matters'

Andy Zanelli
clock 19 February 2026 • 5 min read