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| Version 1 | Version 2 |
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| Budget to boost lifetime allowance for pension savings | Budget to boost lifetime allowance for pension savings |
| (37 minutes later) | |
| Jeremy Hunt will use his Budget to boost the lifetime allowance for pension savings of up to £1.8m to encourage people to keep working. | |
| The Chancellor could also increase the £40,000 annual cap on tax-free contributions to pensions. | The Chancellor could also increase the £40,000 annual cap on tax-free contributions to pensions. |
| It is expected millions could benefit from the rise - which would address government concerns that people earning higher wages retire earlier, particularly doctors and consultants. | It is expected millions could benefit from the rise - which would address government concerns that people earning higher wages retire earlier, particularly doctors and consultants. |
| The Treasury said it will not comment. | The Treasury said it will not comment. |
| Currently, the so-called lifetime allowance - the amount you can accumulate in your pension pot before extra tax charges - is £1.07m. | Currently, the so-called lifetime allowance - the amount you can accumulate in your pension pot before extra tax charges - is £1.07m. |
| The amount workers can save into a pension before paying tax is also expected to rise to as much as £60,000 from the current £40,000. | |
| The move is part of government plans to persuade workers to stay in work for longer, expected to be a big part of chancellor Jeremy Hunt's Spring Budget on Wednesday. | |
| UK economic growth has flatlined in recent months and the Bank of England expects the UK to enter a recession this year. Many industries have struggled to recruit workers, though job vacancies are falling. | UK economic growth has flatlined in recent months and the Bank of England expects the UK to enter a recession this year. Many industries have struggled to recruit workers, though job vacancies are falling. |
| The government has been considering plans to coax retired middle-aged workers back into jobs to try to boost the economy, with reports older workers could be offered a "midlife MoT" to assess finances and opportunities for work. | The government has been considering plans to coax retired middle-aged workers back into jobs to try to boost the economy, with reports older workers could be offered a "midlife MoT" to assess finances and opportunities for work. |
| Earlier this year, Mr Hunt pledged to consider changes to encourage the over-50s who had taken early retirement during or after Covid to return to work, saying he "would look at the conditions necessary to make work worth your while." | |
| Related Topics | Related Topics |
| Jeremy Hunt | Jeremy Hunt |
| Pensions | Pensions |