I currently work as a Paraplanner, my role involves writing reports for Financial Advisers detailing their clients financial situation.
Over the years I have noted that for many affluent clients their State Pension income is superfluous to their needs and they are likely to fall foul of the pensions Lifetime Allowance charges.
In order to reduce public spending I suggest a trade off is offered; if those that don’t don’t require their State Pension opt to forego this income then the government could offer unlimited lifetime pension allowance as compensation.
This could reduce public spending on State Pension benefits and further incentivise those who have the capabilities to generate their own retirement income. It could also reduce the number of Doctors, Surgeons, Head Teachers etc who are choosing to retire early in order to avoid further Lifetime Allowance charges and the issues this complex system creates.
It makes no sense to penalise those prudent enough to save for their retirement so offering an alternative that also reduces the State Pension bill could work.
2110-11