Planned increases to the lifetime allowance (LTA) and annual allowance (AA), widely predicted to be announced in tomorrow’s budget speech, are good news for savers but may fail to attract the recently retired back into work, commentators have said.
Jeremy Hunt is predicted to announce the increase of the LTA from £1.07m to £1.8m. The AA is likely to increase from its current level of £40,000 to £60,000. The move is designed to keep people in work longer and potentially encourage the recently retired back to the office, it was reported. While pensions experts on the whole welcomed the news many pointed out potential flaws with the plan. Former pensions minister Ros Altmann said: "If the chancellor wants to encourage more over 50s to keep working, he must address health issues rather than just pensions or benefits. "Facilitatin...
To continue reading this article...
Join Professional Adviser
Signup and gain exclusive members-only insights
- 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.
