Dr Tony Goldstone, a consultant radiologist and clinical director at Hull University teaching hospitals NHS Trust has stated: “The pensions catastrophe is an existential threat to our NHS. We’re only just beginning to see the impact of these taxes. The stark reality of the pensions taxation is now becoming abundantly clear.”
Since 2016, those who earn more than £110,000 a year have faced new limits on how much they can contribute to their pension savings. These complex rules mean that charges can be unpredictable if the individual goes over their allowance.
The system works by the Government giving tax relief on contributions to pension schemes, and allows up to 25% of the benefits to be taken as a tax free lump at retirement.