Over the longer-term there could also be an argument for splitting the allowances so DB costs are controlled by the lifetime limit only, with DC savers subject to an annual limit.
This would have the benefit of drastically simplifying the rules for the majority, although it could get messy if the government wants to prevent DB savers arbitraging the system by shifting their funds to DC.
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Whatever happens, policymakers need to break the habit of a lifetime when it comes to pensions taxation and think long-term.
Lack of saving remains one of the central challenges facing governments around the world, so encouraging more save for retirement has to remain the central focus.
Tom Selby is a senior analyst at AJ Bell
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