Sign AJ Bell’s ‘Pension Tax Lock’ parliamentary petition

We’ve long campaigned for a Pension Tax Lock, as we believe it would deliver much-needed certainty for clients and enable millions of people to plan for retirement with confidence. This petition allows you, your clients and other stakeholders to show support for this important initiative.

The Pension Tax Lock proposal calls for a firm commitment from the Government to the two core tax incentives built into the pension system, which are:

• tax relief – pensions operate on the basis of a tax deferral system, whereby people are expected to pay tax in retirement but receive tax relief on contributions at their marginal rate; and
• tax-free cash – people are entitled to take 25% of their pension tax free as a Pension Commencement Lump Sum. At the very least, this entitlement should not be reduced from its current level of £268,275.

When your clients save in a pension, they enter into a tax pact with the Government. Take-home pay today is sacrificed for the long term, on the proviso that it will instead be taxed on withdrawal and comes with the added benefit of a tax-free element.

That is the foundation upon which the retirement plans of millions of Britons are built, and it depends on a firm commitment to stability from the Government – one that matches the long-term financial decisions of savers preparing for retirement.

Your clients contribute to a pension in good faith and should be able to do so without ongoing speculation about whether the Government may move the goalposts before they access their money.

Committing to a Pension Tax Lock would show the Government is serious about a fair deal for workers, allowing today’s savers to enjoy the same pension tax incentives as their parents. It would also demonstrate a commitment to long-term stability, offering genuine security to savers through a policy that doesn’t require any increase in Government spending.

The economy should benefit too, as more stability in the pensions system could give people the confidence to boost their contributions – a large proportion of which will be invested in UK business. For an administration struggling in the opinion polls, a policy like this – with appeal to older and younger voters alike – would represent a positive and unifying step forward.

Find out more and get involved

Our Director of Public Policy, Tom Selby, discusses our call for a Pension Tax Lock further here. We’d encourage you to sign our petition and share the link with others who may wish to lend their support.

As the petition has reached over 10,000 signatures, the Government has now issued a response which you can read on the petition page. At 100,000 signatures the petition will be considered for debate in Parliament.

For your clients

We’ve also written an article for your clients explaining the background to the petition. Please feel free to share it with anyone who may want to add their support.