Pension tax relief to be abolished?

Anyone considering increasing your pension contributions now in anticipation of the chancellor potentially reducing or removing pension tax relief? What are your thoughts on this, and how do you think it will impact your plans for achieving Financial Independence, Retire Early (FIRE)? Generally implications of this on FIRE PLANS

• from news article yesterday However, she added: “We also made other commitments in our manifesto, not to increase national insurance, VAT, or income tax for the duration and we’ll stick with those.”

Speculation that the Government will instead consider a 30 per cent flat rate of tax relief on pension contributions, which could raise £2.7bn, has been rife for days and today, Reeves refused to rule it out.

Contributions to pensions currently benefit from tax relief at a “marginal rate”, meaning basic rate taxpayers get 20 per cent, higher-rate taxpayers 40 per cent and additional-rate taxpayers 45 per cent.

Read Next Cutting winter fuel payments worse than ditching triple lock says ex-pensions minister PENSIONS AND RETIREMENT Cutting winter fuel payments worse than ditching triple lock says ex-pensions minister Read More A change to a 30 per cent flat rate would mean higher rate payers, those earning over £50,271, will pay an effective 10 per cent tax charge on their pension. *