Panellists at the PLSA Annual Conference discussed how to put society’s needs into the centre of pension policy.
Speaking on a panel at the Pensions and Lifetime Savings Association (PLSA) Annual Conference, Charlton called for a radical overhaul of workplace pensions to focus on outcomes.
“We talk about savings pots, but actually, we don’t set out an objective,” said Charlton. “A workplace pension should be providing a replacement ratio that takes people into… a moderate pension income [by PLSA Retirement Living Standards].”
Referring to tax relief, Charlton said the issue was divisive but highlighted that higher rate taxpayers who take advantage of the benefit have not always been in that bracket. Many may have deferred their retirement planning earlier in their careers.
He said a lifetime allowance for relief that can be accessed by all savers at any time would be more equitable and simpler to communicate.
There have been strong rumours of potential changes to the tax relief system ahead of chancellor Rachel Reeves’ first Budget speech at the end of this month.
However, the government has reportedly dropped plans to overhaul the system of tax relief on pension contributions.
