Govt moves to cut top earners' tax relief will 'disincentivise retirement saving'

Jenna Towler
clock

Pensions minister Ros Altmann has confirmed the government's wide-ranging pension consultation will consider scrapping "regressive" tax breaks for higher earners amid warnings changes could "disincentivise retirement saving".

The pension tax relief green paper, announced in the Summer Budget, has called for radical thinking on changes to the current taxation system. The Chancellor used his speech to open dialogue on shifting the current system to one more like ISAs. Altmann, according to the FT, said the government is weighing whether to scrap the remaining special tax relief applied to higher earners pension saving. Commentators said pension saving for executives across the country could become unattractive as a result. Further reading: Pension tax relief review throws up 'huge policy issues' Weal...

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

L&G becomes first pension provider to complete dashboards ecosystem connection

L&G becomes first pension provider to complete dashboards ecosystem connection

Provider finalised its connection to the ecosystem today

Holly Roach
clock 17 April 2025 • 1 min read
How public sector pensions impact divorce proceedings

How public sector pensions impact divorce proceedings

'The ripple effects of the McCloud Remedy continue to be felt in divorce proceedings'

Vanessa Gardiner
clock 15 April 2025 • 5 min read
Pension freedoms and lessons from Down Under

Pension freedoms and lessons from Down Under

How the UK can build a more 'robust and supportive' system

Verona Kenny
clock 09 April 2025 • 4 min read