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Government sent bleak warning amid fears of raid on pensions

Rachel Reeves consequences country experts CEO COST Акции FIVE

15.08.2024 - 22:51

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manchestereveningnews.co.uk

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The boss of insurer Aviva has warned the government against tapping into private pensions to plug a £22 billion deficit in the country's finances.

Speculation is rife that the Chancellor Rachel Reeves may cut the tax relief available to higher earners on their pension contributions in her October Budget.

At present, a basic rate taxpayer receives 20 per cent tax relief on pension contributions, meaning every £100 they invest in a scheme costs them £80.

However, those earning between £50,271 to £125,140 and paying 40 percent tax also receive more generous tax relief on pension contributions at this same rate.

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