Earlier I wrote about the triple lock. Today I turn to private sector pensions, the lifetime allowance, the annual allowance, and the right to extra pay in lieu of employer pension contributions.
The larger state pension means that we all need smaller private pensions to give us the retirement we want. That is just basic arithmetic.
The new larger state pension and the triple lock cost the government a great deal. So do tax breaks on private pensions, which accrue disproportionately to the richest fifth of people.1 Most workers paying higher rate tax will be basic rate taxpayers after retirement. The pension tax break to these well-off people is six times as big as the pension tax break for workers who are basic rate taxpayers.2 That is absurd.
What should we do?