Pension hammer blow as number of retirement millionaires plummets

According to new data, Britain now has 1,000 fewer actively contributing personal pension millionaires. The numbers were obtained following a Freedom of Information request by Investing Reviews to HMRC.The taxman shared overall millionaire numbers among active contributors to Relief at Source schemes dropped by 37 percent last year.Instead of 2,700 contributions, there are now only 1,700 putting in to their pot.The news follows a period of global stock market volatility, which has turned the pension industry upside down.The data stated there were 1,600 investors with personal pension pots worth £1million to £1,999,999.READ MORE: Rishi Sunak warned ditching pension triple lock would be ‘unpopular’ Pension hammer blow as number of retirement millionaires plummets (Image: Getty)The remaining millionaires are sitting on pots worth over £2million.The data released to Investing Reviews showed there are currently 1,100 taxpayers still paying into personal pension schemes, despite their existing pots exceeding the Lifetime Allowance.The Lifetime Allowance limits how much a person can save throughout their lifetime while still being entitled to tax relief.Exceeding this sum means people may be subject to a 55 percent tax.DON’T MISSState pension triple lock may be scrapped for ‘hefty savings’ [INSIGHT]Inheritance tax victory as Hunt may leave IHT ‘well alone’ [EXCLUSIVE]Barclays issues warning after man targeted in cruel online scam [ANALYSIS] Pension: Monthly sum needed for a £100k pot (Image: EXPRESS)’But it’s a different story for those who were hoping to retire in the near-term. ‘Many will now either have to work a little longer, or develop alternative income streams to help them manage the squeeze.”A Treasury spokesperson previously told Express.co.uk: ‘The Lifetime Allowance was frozen to ensure the sustainability of the public finances and the current threshold means savers can put over £1million into their pension completely tax-free.’