The Chancellor is understood to be looking at increasing the lifetime pension allowance (LTA), in what could help support a wider ambition to encourage older workers back into the jobs market, to help with the UK’s shrinking workforce. The lifetime allowance stands at £1.07 million, with savers incurring tax after that personal pension pot threshold has been exceeded. Reports differ about how much Mr Hunt could put the LTA up by in his fiscal statement. The pension lifetime allowance was first applied in 2006, when it was set at £1.5 million. It was due to stay at £1.07 million until 2026 but Mr Hunt could choose to bring a change forward.

Source: The Times March 14, 2023 11:49 UTC