Steven Cameron, Pensions Director at Aegon, said: “The removal of the LTA by the Conservatives was designed to stop pensions tax rules encouraging higher paid professionals in the NHS from retiring to avoid tax charges. This is something that all political parties should support.
“We understand that the abolition might appear like a tax break for high earners, and not aligned to traditional Labour policy. But the removal has proven excruciatingly complex and attempts to reinstate could have tied the pensions industry, as well as a new government, in knots.
“There are many more greater pension priorities, such as implementing the 2017 auto-enrolment reforms and improving retirement income adequacy for an incoming government to progress.
“The rules removing the LTA have still not been finalised and the next government should ensure HMRC plugs the gaps so those individuals currently in limbo can sort out their pension affairs.”
Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group said: “The prospect of the LTA being reintroduced will have loomed large in the minds of those savers with bigger pensions approaching retirement. Many of these individuals will have been weighing up whether to continue paying in above the old limit or not while uncertainty remained.
“Prior to its abolition the LTA had become increasingly problematic as some savers felt punished for doing the right thing and saving regularly and investing well. The annual allowance already places an effective cap on the amount people can pay into a pension so many felt the LTA was unnecessary.”
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