LTA removal spurring more contributions and retirement delays

Chancellor Jeremy Hunt confirmed the abolishment of the LTA in March

Sahar Nazir
clock • 2 min read

The removal of the lifetime allowance (LTA) in this year’s Spring Budget has led to more than half (51%) of people restarting, increasing, or planning to increase pension payments, according to Investec Wealth & Investment.

The new study with higher rate taxpayers from the wealth manager showed that scrapping the LTA has driven changes with 59% taking a range of actions as a result. Chancellor Jeremy Hunt confirmed the abolishment of the LTA in the Spring Budget in March, allowing people to increase the annual amount that they can save into their pensions before hitting harsh tax penalties. Although the removal has led to boosted pension payments, 16% of taxpayers said they have stopped pension saving because they had reached or were close to the LTA. Investec Wealth & Investment found that those who ...

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 Your profession

Product innovation needed to plug 'woeful' AI regulation gap

Product innovation needed to plug 'woeful' AI regulation gap

Mallowstreet chief executive on how tools can fill a gap in the market

Isabel Baxter
clock 19 June 2024 • 1 min read
Problem solving: How Tatton makes adviser business partners

Problem solving: How Tatton makes adviser business partners

‘We were built specifically to solve problems that advisers have’

Sahar Nazir
clock 19 June 2024 • 3 min read
PA Working Lunches: Last chance to hear from Schroders

PA Working Lunches: Last chance to hear from Schroders

Join us for an informative session worth one hour of CPD

Professional Adviser
clock 19 June 2024 • 1 min read