The lifetime allowance (LTA) is becoming less generous to pension savers despite it rising to £1,073m from April next year, providers have said.
Latest data from the Office for National Statistics today (16 October) confirmed the Consumer Prices Index rate of inflation for September last year, to which the LTA is pegged, was 1.7%. This means the allowance for defined contribution savers will be set at £1,073m - up from £1,055m - from next April. Aegon pension director Steven Cameron said while any increase is welcome the forthcoming hike was in-line with price not earnings inflation. He explained: "With wage growth remaining much higher than inflation, this means in earnings terms the lifetime allowance is becoming less and...
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