Pensions are a way of deferring Tax until retirement, which should be as low as 55 and the money going into a Pension is from taxable income which is effectively not subject to Income Tax at any rate.

The proposed relief limit should be set at £5,000,000. If the limit is set any lower, it will create an unintended consequence where working extra hours does not financially benefit those with deductions and other taxable income. This issue has been seen with NHS consultants, who reduced their extra hours, which in turn decreased the capacity of the NHS.

Change the lump sum that can be drawn out Tax free from 25% to 12.5% from 55, increasing the Income Tax take. This would erode trust in the system, but it is a necessary step to ensure fairness and sustainability.

The big change is that pension funds will no longer grow in a tax-free environment. Instead, any annual gains on capital or investment income within the pension wrapper will be taxed at 25% and paid annually. If the value of the fund drops, this tax will not be applied again until the fund's value exceeds its previous high point.

It's not right that millions of private sector workers see their pensions rise and fall with the market, while public sector defined benefit schemes are guaranteed to rise with inflation, entirely risk-free. This guarantee has an immense value, and it's time it made a fairer contribution.

Our proposal is a new 25% "Pension Guarantee Levy" on the growth in value of these index-linked pensions each year. This is a tax on the increasing value of their risk-free guarantee, not the pension payments themselves.