Was it right to raise the pension annual allowance?

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Lee Clark, a financial planner at the wealth manager RBC Brewin Dolphin

The chancellor went further than expected with big changes to pensions in his budget this week. The increase of the annual pension allowance from £40,000 to £60,000 is welcome news for pension savers and aims to encourage NHS doctors and other high earners to stay in work for longer.

The increase will mainly help those wealthy savers who can increase their contributions above £40,000, however it does highlight the importance of saving for retirement, which we welcome.

The changes are particularly beneficial for those in higher tax bands. For example, someone earning £160,000 a year could make a £60,000 gross pension contribution and their adjusted net income would fall to £100,000. This would