However, there were positive aspects of this solution, noted Steven Cameron, pensions director at Aegon.
“It is a positive sign that government is looking for a solution and it is prepared to it to apply to all individuals and not only doctors.
“It would be hugely complex and not sustainable to have different rules according to professions.”
Mr Cameron would prefer if the Treasury announced a new pension tax relief review and consultation in the next Budget, which will be delivered on March 11, instead of a radical solution, since the pensions industry input could really help this discussion, he added.
Fiona Tait, technical director at Intelligent Pensions, said: “The obvious and most popular action would be to simply abolish the taper, and to call for a wider review into pension tax relief in general.
“The whole intention of pensions simplification in 2006 was to get rid of the complexity and manage costs via two simple allowances, and I can see no reason why we cannot return to that aim.
“Such a review would allow the government to look at ways of recouping the revenue lost by the abolition of the taper and making the system fairer and more sustainable at the same time.”
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