Pensions crisis: the government must act

摘要

It would be a tragic irony if something as benign and beneficial as pensions proved to be the final downfall of the NHS. But when senior doctors feel they have little choice but to reduce sessions, stop doing overtime, or retire early because of changes to the way their pensions are taxed, this may be our new reality. The killer blow was the introduction in 2016 of the tapered annual allowance, whereby the more that someone earns over a certain amount the less their annual allowance. All income is now counted, including overtime and pension growth. As Paul Youngs puts it (p 232), "This creates a spiral of taxation: the more our pensions grow, the less they are allowed to grow without being hit by additional tax."