UK Pensions - Budget 2021 - Implications for pension schemes

The Chancellor of the Exchequer, Rishi Sunak, has delivered the government's Budget for 2021. The pensions-related Budget announcements are limited, but include the following:

• Lifetime allowance: the lifetime allowance will be maintained at its existing level of £1,073,100 until April 2026.
• Charge cap: The government will consult within the next month on whether certain costs within the charge cap affect pension schemes’ ability to invest in a broader range of assets. The Budget document explains that this is to ensure schemes are not discouraged from such investments and are able to offer the highest possible returns for savers. The government will also come forward with draft regulations to make it easier for schemes to take up such opportunities within the charge cap by smoothing certain performance fees over a multi-year period.

For more information, please speak to your usual Linklaters contact.