As a knock on effect, maximum tax-free cash would also be damaged, to the tune of nearly £65,000 according to the organisation.
Mr Selby continued: “Although a lifetime allowance of just over £1million might sound like a huge amount of money, it puts a relatively low cap on people’s retirement aspirations.
“Consider a healthy 65-year-old with a £1,073,100 pension pot – exactly the level of the lifetime allowance today – who takes their 25 percent tax-free cash (£268,275) and uses the remaining 75 percent (£804,825) to deliver a retirement income.
“That could generate an inflation-protected drawdown income of around £35,000 a year for 30 years in retirement.
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