Lifetime Allowance (LTA) caps your pension savings without extra tax charges, excluding the state pension.

Downsides

• Reduces Retirement Income: Hefty tax charges for exceeding the LTA.
• Penalizes Savers: Diligent savers may face unexpected penalties.

Upsides

• Promotes Balanced Savings: Encourages diverse retirement planning.
• Ensures Fairness: Prevents excessively large pensions for higher earners.

Abolishing the LTA

• Tax Savings: Avoids up to 55% extra tax.
• Accessibility: Pensions accessible from 57, with 25% tax-free.