Tax  

Advisers unite in call to scrap lifetime allowance

David Mills, director at Ridgeways (FP), agreed the allowance and having “a complex pension system” could put people off from saving in the long term 

He said: “It seems nonsensical that we punish people for having good investment returns, given that there’s already a limit on the amount of tax relief available on the money they have paid into their pension over the years.”

Mr Waldie added parliament should stop using pensions as “a political football” and should stop changing the rules.

He said: “We need cross party agreement on what pensions are for and how they should be used. 

“I started saving into a pension 35 years ago and I have lost count of the number of times that the goalposts have been changed. How can anyone plan when governments change the rules every 5 years? 

“One minute they are ramping the lifetime allowance up and the next slashing it right back down again. For serious financial planners the system is a nightmare.”

amy.austin@ft.com

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