Lee Clark, a financial planner at wealth manager RBC Brewin Dolphin
The chancellor went further than expected with major changes to pensions in his budget this week. The increase in the annual pension benefit from £40,000 to £60,000 is welcome news for pension savers and aims to encourage NHS doctors and other high earners to stay in work for longer.
The increase will mainly help the wealthy savers who can increase their contribution to over £40,000, but it highlights the importance of saving for retirement, which we welcome.
The changes are particularly beneficial to those in higher tax brackets. For example, someone earning £160,000 a year could make £60,000 in gross pension contributions and their adjusted net income would drop to £100,000. This would