Spring Budget 23: 'Unfit' pension allowance increases good news

Chancellor’s pension tax allowance budget push widely trailed

Jenna Brown
clock • 7 min read

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...

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