“I stopped saving for retirement because of Rishi Sunak’s obscene tax grab of 55%”

Millions of ordinary savers will be caught up in the lifetime allowance as a result of the freeze.

Shaun Beal, 62, from Doncaster, said the tax rule may have been designed for the ultra-rich, but it also came as a surprise to those on low incomes.

“I’m sure it wasn’t meant to capture people like me, a working-class sailor – and if it had risen with inflation or remained at its previous level, I wouldn’t have cared. not worried,” he said.

However, the Merchant Seaman will have to pay hundreds of thousands of pounds in tax on his £1.4million pension if the threshold remains at its current lowest level.

“I worked 45 years and if someone had told me from day one I would have changed my pension payments and put more into Isas,” he said. “It’s an unfair tax. People like us who come from a counseling house should be able to protect what we have saved. I saved my whole life.

When he retired, Mr Beal was transferred from his defined benefit pension, which would have paid him £40,000 a year. When calculated against the lifetime allowance, the retired sailor would not have exceeded the upper limit, as it was equivalent to £800,000.

However, when transferred to a private pension, he was valued at £1.16million. Indeed, tax rules are preferential for gold-plated defined benefit pensions compared to private sector pensions. Mr Beal’s pension has since risen to £1.4million with returns on investment, increasing his tax bill.

“I saved on my pension instead of having nice things and now I’m going to pay for it”

The government is advocating saving more for pensions because millions have not saved enough. But Jim Harley*, 71, from Edinburgh, said he felt “ambushed” by the messages from the state.

“We were encouraged to invest in our pension by the government and I sacrificed other things to do so. Most of it seems like a waste of time now because I’m going to have to pay a lot of taxes on it,” he said.

Mr Harley, who is retired, said he only found out about the lifetime allowance rules this year as he neared the age of 75, when he will be tested against the threshold and will pay hundreds of thousands of pounds off his £1.8million pension.

“It was a shock. I contributed a supplement to my pension because I was told it was a good way to protect the inheritance tax money for my children.

“I’ve had financial advisers, but I was never told about it until my current adviser mentioned it a few weeks ago,” he said.

After successive cuts to the £1.8m threshold just a decade ago, HM Revenue & Customs introduced protections which allow savers who are close to or have reached the new limit to claim an exemption, retaining the limit the highest. Anyone with pension savings of over £1m as of April 2016, when the cap was reduced by £1.25m, can apply. Mr. Harley said he would.

He said he continued to contribute to his pension and did not intend to take it all out during his lifetime, but hoped it would go to his three children. On his 75th birthday, however, he will lose 25% of all savings over £1,073,100, even if he never touches it.

“I put that money away rather than paying for a nice vacation or having a big car and now I find we can’t leave it to our kids without it being taxed. It takes away the incentive to save for your family,” he said.

Mr Harley said he had made his pot bigger over the years by taking risks in the stock market and choosing “smart but also lucky” investments. But he said it was not worth taking the risk given the amount that would be taxed.

Investment growth after age 75 will not be taxed on the lifetime allowance.

“You save so you don’t have to depend on the state, then they hit you with new taxes”

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