Seer Green Financial Planning pensions adviser David Jose believes we could see a flat rate of around 30 per cent introduced to encourage less affluent people to save more, as well as saving the Government money in the long term.
“Another proposal that has been mooted recently is an age-related scale.”
Jose says: “This would provide a relief of between 100 per cent and 80 per cent minus your age. So younger people who save into their pension pot receive more tax relief, which will encourage them to save more for retirement.”
He adds the scalability would also help the Government, as the relief would automatically reduce each year as the pension pot builds up and the saver gets older