Government ambitions to liberate pension savers from tax constraints could have hit a snag as the majority of the population does not expect its latest policy to stand the test of time.
Chancellor Jeremy Hunt said the pensions lifetime allowance (LTA) would be scrapped from next April in last month’s Budget, allowing investors to save as much as they can into their pensions, subject to annual limits. The cap is £1.07mn.
However, a survey from pension provider AJ Bell showed that most savers were holding back from changing their plans, as they expect the policy to be reversed. Similarly, advisers also believe the policy will never fully come to fruition or will be immediately rowed back by a Labour government.