Carl Lamb believes the LTA causes more problems than it can possibly resolve. Here he explains his logic...
Once upon a time, in a world before A-Day in 2006, you could build up your pension savings to whatever level you liked. As advisers, we could tell our clients they were free to put what they want aside for their futures, so encouraged them to invest in their pensions… Then A-Day happened and a new concept was introduced: the lifetime allowance (LTA). The cap of £1.5m seemed enormous back then and we were reassured that it would only affect a handful of very wealthy pension savers. We didn't panic: we could still encourage most of our clients to plan ahead and build up their pension ...
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