🔎 There are expected to be several changes to pensions in tomorrow’s Budget
The £40,000 cap on annual pension contributions – the amount people can save each year before incurring tax – will also be raised to £60,000. The combined cost of the increased allowances is expected to be £2bn a year. However, the £60,000 does not get anywhere near its high of £255,000 in 2010/11.
Jon Greer, head of retirement policy at Quilter, said: “For many people, one of the primary reasons they want to return to work is to boost how much they have in retirement, and this perverse rule disincentives this.
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