Liberal Democrats believe in a fair and sustainable pensions system.

The Budget has confirmed that Liberal Democrat tax policy on reducing the Lifetime Allowance for pension contributions will come into effect in 2016/2017.

From April 2016 the Lifetime Allowance will reduce from £1.25m to £1m, limiting the amount of tax relief available to the wealthiest pension savers.

This will help protect the public finances by reducing the cost of income tax relief on pension savings.

Liberal Democrats believe that the fairest way to restrict pensions tax relief is to ration the amount of tax-privileged pension saving an individual can make. This preserves incentives to save for everyone.