Steven Cameron, Pensions Director at Aegon comments on the key role that the new chancellor will play in shaping pension policy:
“While people might think pensions policy is set solely by the Department for Work and Pensions, the Treasury has great influence, particularly around how the tax system supports pensions. This includes the valuable tax relief top ups on contributions and the limits on how much can be saved. Remember, it was former Chancellor George Osborne who brought in pension freedoms, radically reforming how people can now access their pension flexibly.“One of the most contentious pension measures Rishi Sunak introduced was freezing the lifetime allowance, the maximum you can build up in your pension without a tax penalty, until 2026. With inflation skyrocketing, more and more people are being dragged into facing this tax charge and now may be the time to unfreeze this measure.“While Nadhim Zahawi will have many other more pressing priorities, we hope his appointment creates an opportunity to make sure pensions tax policy is truly fit for the current environment.”
