Defined Benefit  

Calls for change in pension valuation

Craig Harrison, managing director of Creative Wealth Management, said it was "clear that the current factors that are applied to DB entitlements for LTA calculations are not representative of the actual cost of providing these benefits".

He said: "This is an advantage that DB benefits have over DC. A reassessment of these factors would go some way to levelling the playing field between DB and DC although as a consequence we would see more DB retirees incurring LTA tax charges.

"That’s great for the chancellor and no so great for those with DB entitlements who are at or in excess of the LTA."