Pensions - Articles - Cutting the lifetime allowance is sending a mixed message

 “Reducing the lifetime allowance will only impact a tiny percentage of pension savers. But, if the government’s long term goal is to encourage people to save a greater proportion of their salaries into pensions, there is a risk of a mixed message – save for the future, but not too much.
 
 “Increasingly, pension reform is being used as a party political tool. While many of the recent changes are welcome and long overdue, pension policymaking should be based on long term objectives and built on consensus – not short term gain. This is why we believe that an independent pension commission could play a crucial role in scrutinising how these reforms impact one another.”