Tax relief on pensions should be replaced by a Treasury contribution of 50p per £1 saved, argues a radical report by Michael Johnson for influential think tank the Centre for Policy Studies (CPS).
The government contribution would be up to an annual allowance and would be paid irrespective of savers' taxpaying status, according to Johnson's report Incentivising retirement saving: the end of tax relief, and a new beginning, which was published on Monday. The report argues the 25% tax-free lump sum should be scrapped - with accrued rights protected - and also calls for an end to the lifetime allowance (LTA), which it argues "adds considerably complexity to the pensions landscape". Another of Johnson's proposals is that ISA and pension products should share an annual combined cont...
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