Eyes on the prize: Just how sacred is pension tax-free cash?

Resolution Foundation and IFS say changed needed on tax-free cash

clock • 4 min read

Two think tanks believe changes to pension tax-free cash entitlements should be explored, Rachel Vahey looks at what's on the table...

We have recently seen a flurry of proposals for changes to pensions taxation rules. Two of these - from the Resolution Foundation and the Institute of Fiscal Studies (IFS) - are calling for a cap to tax-free cash taken from pensions. Although they ended up with (virtually) the same proposal, the two think tanks arrived there by taking different routes. The Resolution Foundation is concerned about the concentrated level of economic inactivity amongst older people following the pandemic. In its report Post-Pandemic Participation it noted older people not working who are from low-income ...

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