But the value of Mr Hunt’s reform is not really about who it benefits. It is simply a long overdue removal of red tape that gives all of us more freedom over our pensions.
Retirement planning has been over complicated and made nigh-on impossible by the lifetime limit, which has changed seven times in recent years.
Politicians seem clueless to the fact that the pension system has long been crying out for simplicity and clarity.
Britain is facing a retirement crisis because the state pension is unaffordable (the pension age is likely to rise soon as a result) and workers are not putting enough into their pension pots.
Labour’s short-sighted meddling only takes away the certainty savers need to plan effectively, and ultimately infringes on their financial liberties.
How, and at what level, would Labour bring back the lifetime allowance I wonder?
Had Mr Hunt, for instance, merely increased the lifetime pension allowance to £1.8m, the new limit would have allowed a senior doctor to amass a pension paying £90,000 a year without losing any tax relief. Whereas a private sector worker with a “defined contribution” fund could only buy an annuity paying around £63,000 a year for £1.8m.
Labour’s pledge to bring back the allowance, potentially just months after it is due to be scrapped, will only encourage a mass exodus of senior doctors to quit work.
They are painfully aware that come the next election they may be facing colossal tax bills once again.
Labour’s blinkered hatred of wealth has made the party hellbent on taking away our pension freedoms. A great retirement disaster will be waiting for them if they are victorious in the next general election.
