Scrapping lifetime allowance tops adviser Budget wish list

60% of advisers believe the £1 million limit should be abolished to reflect the impact of progressively larger funds being achieved and taking into account where there are transfers from defined benefit pension transfers, where deemed suitable.

The Treasury has previously pledged to increase the current £1 million lifetime allowance in line with CPI inflation from April next year but there is growing speculation the rise could be reversed along with claims the annual allowance could be cut to £30,000.

Momentum Pensions research with advisers shows around a third (32%) would support moves to means-test retirement benefits such as the Winter Fuel Allowance if the Chancellor needs to raise money and 17% would back ending the triple lock on the State Pension.

But moves to limit pensions tax relief would be unpopular – just 3% of advisers would support the introduction of a standardised 30% tax relief on contributions.

John McCreadie, Head of Sales (UK), Momentum Pensions, said: “Abolishing the lifetime allowance would be popular with advisers but seems improbable.

“The Budget is expected to focus on the housing market and measures to attract younger voters so fundamental changes to pensions appear unlikely, which has the upside of being helpful for developing member understanding and giving a much needed period of stability in the industry but there is always the possibility of a surprise and the focus on the day will be the detailed announcements.

“Fast access to technical support is very important for advisers and Momentum is committed to updating its service to clients and advisers as soon as possible after the Chancellor sits down.”