There have been 11 changes to the lifetime benefit since it was introduced in 2006. From £1.5m up to £1.6m, up a bit, down a bit, keep it there, down a bit more, don’t get rid of it at all . It sounds more like someone trying to hang a picture than an important government policy.
How is anyone supposed to plan for the future in the midst of such chaos?
Constant government fiddling is creating a generation of people who don’t trust pensions and therefore don’t bother saving for one.
I have long said that the lifetime benefit should be scrapped. It’s a nonsensical threshold that effectively penalizes people for saving early and investing well. A ceiling on the amount you can save