James McLeod, head of pensions at AES International, warns that those in defined benefit schemes may be negatively impacted by the further reduction in the lifetime allowance.
McLeod said: “It is no surprise that the lifetime allowance has again been reduced. This has been on the Chancellor’s agenda for some time. And while George Osborne has predicted that only 5% of people approaching retirement will be impacted by the reduction, those who are effected could lose out substantially.
“Osborne has also not specified how this will impact those in defined benefit schemes – it may be the Government needs to offer express protection measures for those who have been in such schemes for some time.”
If you would like to speak to James for further comment, please either contact Simon Danaher on +44 (0) 7443 576716 or call James directly on +44 (0) 203 051 7840.
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