Pension allowance changes fuel increase in chunky contributions

‘The rule changes have breathed fresh life into pension planning'

Jenna Brown
clock • 2 min read

High earners are pouring significant contributions into their pensions ahead of changes to allowances coming into effect at the end of the current tax year, according to Hargreaves Lansdown data.

The provider said clients had saved 18% more into their Hargreaves Lansdown self-invested personal pensions (SIPP) in this tax year to the end of December compared to the previous year (April to December). It said there was a 53% increase in the number of people contributing more than £60,000 (the current annual allowance) and the number contributing more than £40,000 "grew three-fold". The provider said the behaviour was in response to the increases in annual and tapered allowances and the abolition of the lifetime allowance (LTA) announced in last year's Budget. The changes take eff...

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 Pensions

Crucial advice issue: Death benefits detail advisers need to know

Crucial advice issue: Death benefits detail advisers need to know

Important differences from previous regime

Andrew Tully
clock 05 April 2024 • 4 min read
British Steel a stark reminder of obligations around client files

British Steel a stark reminder of obligations around client files

Lawyer Philippa Hann reflects on her work around the pensions case

Hope Coumbe
clock 27 March 2024 • 2 min read
SSAS and the general levy: A victory for common sense

SSAS and the general levy: A victory for common sense

The value of SSASs after general levy consultation outcome

Caitlin Southall
clock 26 March 2024 • 5 min read