Pre-Budget pension tax speculation 'damaging' client outcomes

Conjecture driving savers to withdraw ‘excessive funds’

Jenna Brown
clock • 3 min read

The chancellor’s move to shut down speculation on changes to higher-rate pension tax relief ahead of the upcoming Budget has been welcomed by experts who said conjecture was damaging to client outcomes.

According to a report in The Times, senior Treasury officials are understood to have told chancellor Rachel Reeves that a reduction of the 40% level of tax relief on higher earners would disproportionately hit individuals working for the state with relatively modest incomes Sources told the publication that reducing tax relief on pension contributions was no longer seen as an easy measure to raise revenue in the 30 October speech but other pension-related options remained in consideration. St James's Place (SJP) divisional director of retirement and holistic planning Claire Trott welc...

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

Pensions consultancy calls for 'fairer' Financial Ombudsman Service

Pensions consultancy calls for 'fairer' Financial Ombudsman Service

First Actuarial says pension redress sitting at ‘historic low’

Holly Roach
clock 04 April 2025 • 1 min read
FCA outlines thinking on using pension pots for house deposits

FCA outlines thinking on using pension pots for house deposits

FCA CEO Nikhil Rathi ponders radical thinking on pension savings

Jonathan Stapleton
clock 02 April 2025 • 3 min read
IFS: Growing DC market needs reform to help savers manage risks

IFS: Growing DC market needs reform to help savers manage risks

Savers facing ‘stark’ challenges managing DC pots in retirement

Martin Richmond
clock 02 April 2025 • 6 min read