'Pension for two' unlikely to solve tax problem, industry says

“Given the financial position the country finds itself in, I doubt boosting pension tax relief for relatively wealthy couples will be top of the Treasury’s agenda.”

He also pointed out that both lifetime allowances are able to be used under current rules.

Selby explained: “Where one person has a large salary and one is a low earner, it will be the annual allowance – rather than the lifetime allowance - which acts as the major restriction for the low earner in building up a large pension pot.

“It might be possible in theory to use a joint earnings measure to facilitate a joint annual allowance for a couple – thereby allowing larger combined lifetime contributions - although this would inevitably lead to significant complexity.

“Rather than tinkering with allowances and potentially making life more complicated, we would prefer the government to focus on simplifying the pension tax system.”

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