Pensions and divorce

Jeremy Hunt has announced a jump in the annual pension allowance for higher earners to discourage early retirement, while entirely ditching the lifetime cap on tax-free pension savings.“No one should be pushed out of the workforce for tax reasons,” he told the Commons.The chancellor said he was increasing the £40,000 cap on tax-free annual pension contributions — which has been frozen for nine years — to £60,000.He also said he would completely abolish the lifetime allowance on tax-free pension pots, which is just over £1m.The moves are partly designed to tackle fears that the system has convinced people to retire in their 50s to avoid a tax hit.