Why it is time to take a long look at the pension tax regime

What behaviours are we trying to encourage with any tax changes?

clock • 6 min read

Pensions tax reform must reflect behaviours which the nation needs to encourage, writes Adrian Boulding

The recent scrapping of the lifetime allowance (LTA) and the increasing of the threshold for annual allowance (AA) from £40,000 to £60,000 announced in the Spring Budget, lead me to ask the question: What behaviours are we trying to encourage with any tax changes? Three clear behaviours spring to mind: 1. Keep paying into your pension In the case of the NHS' most senior clinicians, it is very clear that we need more of them to carry on working for longer within the NHS to help chip away at those waiting lists. An article entitled ‘The long goodbye? Exploring rates of staff leaving...

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

Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Govt reportedly considering introducing a £2,000 salary sacrifice annual cap

Joseph Warne
clock 14 November 2025 • 4 min read
Reeves looking to cap salary sacrifice contributions to £2,000 - reports

Reeves looking to cap salary sacrifice contributions to £2,000 - reports

Chancellor has 'decided against' cutting pension lump-sum withdrawals

Jonathan Stapleton
clock 10 November 2025 • 4 min read
MPs warned against changes to salary sacrifice pensions

MPs warned against changes to salary sacrifice pensions

SPP says scrapping salary sacrifice would lead to reduction in employees’ take home pay

Martin Richmond
clock 07 November 2025 • 4 min read