Press release

3 Mar 2021 London, GB

Consequences for workplace pension provision of reduced lifetime allowance

Consequences for workplace pension provision of reduced lifetime allowance

Press contact
EY Global

Multidisciplinary professional services organization

Marc Hommel, EY-Parthenon Senior Pensions Adviser, comments on the Chancellor’s announcement limiting the pensions lifetime allowance: 

“Every time the attractiveness of pensions is reduced for higher earners, companies tend to become less motivated to offer generous retirement savings arrangements to their workforce. Annual tinkering is likely to continue, with the knock-on impact of employers reducing the generosity of their workforce pension provision and removing or reducing defined benefit pension obligations and risk off-balance sheet. This is one element fuelling appetite for defined benefit pension risk transfer transactions while, at the same time, employers are increasingly turning to other elements of remuneration to reward their workforces.”