‘Going to work looks profitable again’

But constant rule changes exasperate early retirees

Andrew Skidmore, a 63-year-old in Warwickshire, retired early last year after his pension reached the £1.073million lifetime allowance cap. Mr Skidmore, right, who worked as an engineer for over four decades, said that he would consider returning to work after the cap was abolished.

“I would be more inclined to pick up part-time work,” he said. “It becomes more profitable, and you feel like you are back in charge of your own finances again. Before, it felt that there was no point in saving for the future if there is a risk that the Government could tax you at 55 per cent.”

However, Mr Skidmore added that the persistent tinkering with pension tax rules made it difficult to plan. “In recent years, the Conservative Government has reduced the lifetime allowance, frozen it, and now are abolishing it. How are you supposed to plan for the future when it is constantly changing?”