Lifetime pension cap should be scrapped - Skandia

Skandia said the lifetime allowance penalised good investment performance and while £1.5m sounds like a high sum it could affect ordinary savers who begin contributing early in their career. It said if someone began saving at 25 and intended to retire at 65 they would build up 40 years' of contributions. If they invest £509 gross, which equates to just £363 net for a higher rate tax payer, their pension savings could breach the current £1.5m lifetime allowance threshold by the time they reach retirement. This level of contribution is assumed to rise by 3% a year, and an investment gro...