The UK government is facing calls from the finance industry to end speculation around possible pension tax reform ahead of the Budget.
Over the past few weeks, speculation has begun to mount that the government may tinker with pension tax rules at the upcoming fiscal event.
Similar rumours surfaced last year, which led to thousands of people withdrawing their pension tax free lump sums, only for nothing to be announced.
Platform AJ Bell has launched a petition calling for the chancellor to introduce a ‘pension tax lock’ – a commitment not to reduce the amount people can withdraw from the pension tax-free or the amount of tax relief given on pension contributions.
The petition has now received more than 13,000 signatures, which means the government will be forced to formally respond.
AJ Bell’s director of public policy, Tom Selby, said: “The government must step up and deliver their end of the bargain with a public pledge not to tinker with the cornerstone of long-term retirement planning.
“This government insists it is on the side of those who work hard and said on winning power that delivering stability was at the heart of its agenda. Now is the time to show it really means that.
“Anyone sacrificing take home pay today to save for the future deserves a concrete promise from the government that they will have the right to access their pension on the same terms as the generation that came before them.”
