Adjusted confusion: Annual allowance taper hits advice certainty

A deliberate move to curtail pension contributions?

clock • 3 min read

The annual allowance taper puts advisers in an ‘untenable situation', writes Claire Trott. Is the legislation a deliberate move to stifle contributions?

The introduction of the annual allowance taper has already started to impact on the certainty of the advice that clients are able to get from their advisers.  The problem with uncertainty is that it is tempting to do nothing for fear of doing the wrong thing. But stopping pension contributions or opting out of a pension scheme where the employer is making substantial contributions is surely more risky than having to pay a tax charge on some of the contributions made. Getting the right information, even in the simplest cases, where the annual allowance taper may apply is adding to t...

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

We need to work together to tackle pension overconfidence

We need to work together to tackle pension overconfidence

'Clients may assume they're on the right track simply because they're paying into a pension'

Ahmed Bawa
clock 13 June 2025 • 4 min read
Pension freedoms have delivered flexibility in the last decade 'at a cost'

Pension freedoms have delivered flexibility in the last decade 'at a cost'

Consumers value choice but are aware of risk of running out of funds

Jasmine Urquhart
clock 12 June 2025 • 2 min read
Alex Cowan-Sanluis: 'Pension transfer sludge is real – I've seen it'

Alex Cowan-Sanluis: 'Pension transfer sludge is real – I've seen it'

'It became so frustrating that we spoke to the FCA'

Alex Cowan-Sanluis
clock 09 June 2025 • 4 min read