Labour’s pledge to reverse the abolition of the lifetime allowance on pension savings could prompt more doctors and professionals to retire early in a “gold rush” before the next election.
Jeremy Hunt, the chancellor, announced in the budget on Wednesday that he was scrapping the £1.07 million tax-free pensions lifetime allowance to try to encourage professionals back to work. At present some doctors are retiring early to avoid massive tax bills.
Labour described the policy as a “bung to the 1 per cent”. It said Hunt’s pension reforms, which are expected to cost more than £75,000 for every person they encourage back to work, were a “gilded giveaway” and pledged to reintroduce the lifetime allowance if it won the election.
Steve Webb, a former Liberal
Read More:Dash to retire before Labour reverses pensions lifetime allowance plan