In the Autumn Statement the chancellor announced plans to reduce the amount people can pay into their pension after they have taken a taxable sum.
This will reduce the limit on personal and employer contributions to money purchase pensions from £10,000 to £4,000 per year.
Sean McCann, chartered financial planner at NFU Mutual, said: “People in retirement aren’t immune to life events and it is encouraging to see that there will be a consultation to ensure there will be ‘scope’ for people to rebuild their pension savings.
“Divorce is increasingly common for people in their 60s and it can often result in an enormous shake up of personal finances. Divorcees can hand over half of their pension – or more in some cases – to their ex as part of the divorce settlement.
“This is yet another complication that makes it all too easy for people to fall foul of the rules. Professional financial advice has never been more important for people at or approaching critical life events such as marriage, divorce and retirement.”
