Pension simplification to pension complication


Since April 2016 high earners have faced severe limits on their accumulation of tax-free pension savings.

The lifetime allowance now stands at £1m, some 45% lower than its peak. The annual allowance is now £40,000 – 84% lower than its highest point in 2010.

It is ironic that these changes were turned into a policy labelled pension simplification when it was introduced by New Labour just eleven years ago.

The latest restrictions follow several earlier modifications to Pensions Simplification by different governments. These amendments do not efface previous rules and limits: they have increased the number of discrete calculations that need to be made to work out an individual’s pension allowance over the years. In short, this is pension complication.

Earlier this year we held a roundtable for HR and pensions specialists from leading financial services firms to debate the pensions cap changes and other key issues facing HR professionals in 2017.

Read a whitepaper which summarises the views of the experts gathered at the roundtable. 

This article was supplied by Punter Southall Aspire.


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