‘irrelevant’ pensions may lead to increased take-up of lifetime mortgages

Pensions could become an "irrelevant" form of saving for many people to due the amount of tax that could be paid, it has been claimed.

This could lead a number of people to look into equity release schemes as a way of securing their retirement finances.

A recently-published report from independent consulting firm Hymans Robertson claimed that the complex nature of new rules surrounding pension tax relief for high earners has left a number of employers and trustees confused.

Chris Noon, a partner at the firm, said: "As the government has limited tax relief to 20 per cent on contributions for high earners, many people could face an overall tax rate of as much as 70 per cent on their pension.

"For many senior employees this makes a pension an irrelevant form of retirement saving."

Expats retaining a property in the UK that are concerned about how the new rules will affect their retirement finances could use the value of their property assets to boost their income by taking appropriate advice.