Opposition win the election?
‘I would retire even earlier’
Guy Richards, 71, from Kettering, Northants, said he would retire earlier than planned if Labour wins the next election. He is concerned about the prospect of the lifetime allowance being reinstated, writes Alexa Phillips.
Labour said it would reverse plans to scrap the lifetime pensions allowance if it comes into power, calling it a “Tory tax cut for the rich” – but this reversal could push even more people like Mr Richards into retiring earlier than planned at a time when Britain is facing a chronic labour shortage.
Rachel Reeves, the shadow chancellor, has pledged to push for a vote against the measure in the Commons next Tuesday.
Mr Richards, a technical director at an engineering company, plans to keep working until the age of 73, but is keeping a close eye on political developments. He has saved more than £1million into his pension and will no longer be facing a £20,000 to £40,000 tax bill because the lifetime allowance – which kicks in at £1.073million – is being removed. He said: “That will certainly be a benefit to me, and it certainly puts a timescale on when I do retire.
“If Labour does get in at the next election I’ll be retiring immediately before they introduce this cap.”