Rishi Sunak and Jeremy Hunt set to freeze lifetime allowance for two extra years, with more retirement funds facing 55pc tax charges
Rishi Sunak and Jeremy Hunt plan to reveal a stealth tax raid on pensions later this month, as they push to balance the books and reassure the markets.
The Telegraph has learnt that the pension lifetime allowance is set to be frozen for two more years, with a rise in line with prices delayed from 2025 to 2027.
It means two million savers now face tax charges of up to 55 per cent on their retirement funds by the end of that period, according to expert analysis.
The approach comes with the future of the pensions triple lock, which guarantees that state pensions rise by 2.5 per cent, earnings or inflation – whichever is higher – still hanging in the balance.