Jeremy Hunt could raise the pension cap in Budget to stop workers retiring early

The Chancellor is expected to announce an increase to the pension cap next week, in a bid to stop professionals retiring early

Had it continued to rise by inflation, it would have reached around £1.25m in the tax year 2023/24.

“Many doctors are leaving the profession before retirement age, partly to avoid triggering a 55 per cent tax charge once their pension entitlement reaches a level of around £53,000 .” Clare Moffat, pensions and legal expert at Royal London, said: “If the lifetime allowance had increased even by the Government’s inflation target of two per cent during the freeze, then by April 2026 savers would have been able to build up a pension pot of £1,184,789 without a lifetime allowance tax charge applying.

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