Budget to boost lifetime allowance for pension savings

Jeremy Hunt will use his Budget to boost the lifetime allowance for pension savings of up to £1.8m a year to encourage people to keep working.

The Chancellor could also increase the £40,000 annual cap on tax-free contributions to pensions.

It is expected millions could benefit from the rise - which would address government concerns that people earning higher wages retire earlier, particularly doctors and consultants.

The Treasury said it will not comment.

Currently, the so-called lifetime allowance - the amount you can accumulate in your pension pot before extra tax charges - is £1.07m.

Mr Hunt will outline his Spring Budget to Parliament on Wednesday.