“Force wealthy back to work by slashing pension tax-free lump sum, says IFS
Hunt remains under pressure to provide over-50s greater incentives to return work
The tax-free limit on total retirement savings should be radically overhauled to stop successful older professionals quitting the workforce in droves, a prominent think-tank has demanded.
The pension lifetime allowance ought to be based on the amount saved during the working lives rather than the total value of the investments at retirement, according to the Institute for Fiscal Studies (IFS).
A saver currently put away no more than the lifetime allowance without their pension being subject to a tax charge of up to 55 per cent. The allowance has been halved over the last decade and now stands at £1.073 million.
The IFS said in a report published today that such rules were part of a pension tax system that was often “arbitrary, wasteful or unfair” and provided older workers with “ridiculously strong disincentives to work more”.”
https://www.telegraph.co.uk/pensions...wth-ministers/
Brilliant plan - raid people’s pensions to make them work again and pay more tax
Hunt remains under pressure to provide over-50s greater incentives to return work
The tax-free limit on total retirement savings should be radically overhauled to stop successful older professionals quitting the workforce in droves, a prominent think-tank has demanded.
The pension lifetime allowance ought to be based on the amount saved during the working lives rather than the total value of the investments at retirement, according to the Institute for Fiscal Studies (IFS).
A saver currently put away no more than the lifetime allowance without their pension being subject to a tax charge of up to 55 per cent. The allowance has been halved over the last decade and now stands at £1.073 million.
The IFS said in a report published today that such rules were part of a pension tax system that was often “arbitrary, wasteful or unfair” and provided older workers with “ridiculously strong disincentives to work more”.”
https://www.telegraph.co.uk/pensions...wth-ministers/
Brilliant plan - raid people’s pensions to make them work again and pay more tax
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