Pension: Two million Britons ‘to enjoy retirement boost as Jeremy Hunt to raise cap’ | Personal Finance | Finance
When workers choose early retirement but return back to work, the amount in tax-free retirement savings they can put away is reduced from £40,000 a year to £4,000.
It should be noted that there is no confirmation whether reform of this specific pension allowance threshold will be included in Mr Hunt’s Spring Budget.
Helen Morrissey, the head of retirement analysis at Hargreaves Lansdown, shared what she believes should be considered in the Chancellor’s Budget announcement.
The pension expert said: “Speculation has now reached fever pitch that we are going to see enormous hikes in the lifetime, and possibly annual allowances, in tomorrow’s Budget.