Budget 2023: Raising lifetime pension allowance won’t get people back into work, says leading economist

The i says The Chancellor’s plans to raise the lifetime allowance on pensions will not be “massively effective” in tempting over-50s back to work, the director of the Institute for Fiscal Studies (IFS) has said.

In an interview with i, Paul Johnson said that the tax-free limit on pensions savings was a “pretty small part of the picture” when it came to people retiring early.

Chancellor Jeremy Hunt is expected to announce in his Budget on Wednesday that the lifetime allowance – the maximum amount that can be saved in a pension before it is taxed – will be raised from £1.07m to around £1.8m.

There are also reports that Mr Hunt is considering increasing the annual tax-free limit on pension contributions from £40,000 to £60,000.

https://inews.co.uk/news/budget-2023-raising-lifetime-pension-allowance-work-2206833