Lifetime allowance becoming 'less generous' despite increase

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...