Pension Lifetime Allowance freeze by Sunak dubbed ‘counterproductive’ - 'robs taxpayers'

But because the individual wishes to retire at a common age of 65, they could choose to keep this sum invested while they wait.

However, at a six or seven percent return per annum, over the course of the 10-year waiting period, savings could easily multiply to £2million due to compound interest.

Mr Glancy added: “Instead of taking a pension of £40,000 per annum, on which you’d pay basic rate tax, you could be taking a pension of £80,000 per annum, on which a lot of it would be paying higher rate tax.

“So you can see, it actually robs taxpayers, and it robs future generations of tax income which could be paying for services such as the NHS.

“So in terms of a move, it is really very counterproductive, and it’s a bit of a nonsense.

“It means people have smaller pensions, it means the taxman gets lower receipts in the future, and it takes money away from essential services like helping to restructure the post-Covid and post-Brexit economy.”