Removal of lifetime allowance sees increase in pension saving

Scrapping the pension lifetime allowance in this year’s Budget is having a significant effect on pension saving and retirement planning among higher rate taxpayers new research from wealth manager Investec Wealth & Investment shows.

More than half (51%) of respondents say they have restarted increased or plan to increase pension contributions. That includes 16% who had stopped pension saving because they had reached or were close to the lifetime allowance. Those who have already increased pension payments say they are putting in an additional £650 a month.

Nearly a quarter (23%) say they have delayed their planned retirement or will probably delay retirement plans because they can save more into their pension. Around 10% say they have come out of retirement as a result while another 6% say they are planning on coming out of retirement.

Ade Babatunde financial planning director at Investec Wealth & Investment...