TISA calls on Shadow Chancellor Rachel Reeves to review and complete Lifetime Allowance legislation if Labour forms Government
Renny Biggins, head of retirement at TISA, said on the urgent need to complete lifetime allowance legislation: “At TISA, along with industry, we have been working with HMRC to implement new retirement rules following the abolition of the Lifetime Allowance (LTA) on the 6th of April 2024.
“Due to the nature of this wide-ranging and complicated set of changes, combined with the surprise timing of the forthcoming General Election, there are still several scenarios in which consumers may face a penalty when trying to access their pension pots. Amending legislation is still required post-election to avoid these situations, which may require consumers to place their retirement plans on hold for an indefinite period. This must be addressed as a priority.
“It has been recently reported that Labour remains committed to reintroducing a Lifetime Allowance. Any introduction of a New Lifetime Allowance would cause an incredible amount of disruption and confusion for everyone. A new Lifetime Allowance would require another set of transitioning rules for those who have already acted based on the existing legislation. As we have seen with the Lifetime Allowance abolition this would not only be a lengthy piece of work to undertake but would also add yet another level of complexity.
“Labour has also stated that, if elected, they would undertake a full review of the pension landscape. We believe that it would be beneficial to include any consideration of any further changes to allowances within the remit of this review and consider the implications, limitations and opportunities for the pension regime more holistically. We believe this should be undertaken in full collaboration with industry, to ensure the framework is delivering fair outcomes for all and futureproofs it from further short-term interventions and changes, which undermine consumer trust, engagement and investment.
“We are very much looking forward to working with whichever party that forms a Government post-election to ensure consumers receive a dignified and well-funded retirement.”