Paul Goodwin, Aviva’s Proposition Strategy and Development Director for Corporate Benefits, comments on pensions tax relief. “Making changes to pensions tax relief to help pay off Britain’s debts will send a confusing message at a time when it’s absolutely critical we get the nation’s workers putting adequate money aside for their retirement. Automatic enrolment will get millions more people saving into a pension, and it’s essential that we create a sense of urgency that people need to start saving now.

“Changing the pensions tax relief allowance will simply send the wrong message about how important it is for people to take active responsibility for their retirement planning. Such a change will introduce more disruption and complexity to the pensions system at a time when it least needs it.

“For the vast majority of Aviva’s UK pensions customers, these proposals will have little financial impact. Aviva’s workplace pension members on average save about £4,000 a year, which includes their employer contribution. And our individual personal pension (IPP) customers on average make regular contributions of about £3,000 a year.

“We’re surprised to see a drop in the lifetime allowance and we will need to consider the impact this will have on Britain’s savers. Building awareness about how much people need to save for the retirement remains a priority for our industry, and for the majority of people that means putting more money into their pension.”