Why pension allowances put advisers on the backfoot

According to data published by the government, in 2018-19 there were more than 34,000 taxpayers who reported their pension contributions exceeded their annual allowance - with excess payments amounting to £817m.

Savers also struggle to stick within the lifetime allowance with more than 7,000 people exceeded the allowance, incurring a tax charge.

This week reporter Amy Austin examines why so many savers struggle to stay within their allowances and why the number of people exceeding them has continued to climb.

She is joined by Tom Selby, senior analyst at AJ Bell, and Rachael Hall, a financial adviser at Sandringham Medical.

They discuss how government policy has contributed to this problem, why the problem might get worse rather than better in the short term and why the issue is leading to savers leaving their pension schemes.

The FTAdviser Podcast is the weekly podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.

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