Retrospective Tax on accumulated pension/wealth

Is it possible for Govt to

1) increase the pension age from 55 to 60-65
2) reduce the LTA
3) reduce the 25% tax free lumpsum.

I am 38, keen to put more money in pension and retire at 55 but worried they will do retrospective changes.

Is it possible?
Many thanks 


  • NoMoreNoMore Forumite
    790 Posts
    Part of the Furniture 500 Posts Name Dropper
    1) They are already increasing it to 57 in 2028, so yes they could do
    2) Did you see the budget today ?
    3) Yes they could, after today its set to a maximum of £268275 (it was effectively that today and yesterday as well but that was to do with the LTA which they abolished).

    However any changes are unlikely to be retrospective and you should be given notice/possibly protection to be able to change your plans.

    In short I would not be too concerned about putting money into pensions, they are too good a tax wrapper to ignore.
  • BuildTheWallBuildTheWall Forumite
    103 Posts
    Second Anniversary 10 Posts
    All three are possible. But how likely?
    2 was just removed and the complexity associated with it means, it’s highly unlikely to return. 3 is capped now, so highly unlikely to change. 1 is possible, but no one can predict the future. 
  • edited 15 March at 11:28PM
    HappyHarryHappyHarry Forumite
    1.4K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 15 March at 11:28PM
    Anything is possible, you can only plan with what you currently know, and make provision for possible changes.

    Just to note;

    1. The minimum age to access pensions is already moving from age 55 to age 57. 

    2. The LTA is being abolished, so it won't be able to be reduced. Once it has been abolished it will need new legislation to bring it back.

    3. As the LTA is being abolished, new legislation is being introduced to cap the maximum tax free cash at £268,275. This could be a long way below 25% of large pension pots. It would also be a relatively easy figure for future budgets to tinker with.

    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • ader42ader42 Forumite
    157 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Also note Labour have said they will bring the LTA back if they get in 
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