Let's turn our attention, if you wouldn't mind, to our savings and the limit imposed on our so-called lifetime allowance, essentially the amount that the government allows us to save into our pension pot before we get rather heavily taxed for it.

And just how much we can save is generating, well, a rather political bun fight as we approach the general election rather unsurprisingly. So Rachel, if you

wouldn't mind then, can you explain to us in more detail, perhaps, what a lifetime allowance is?

In this regard, what's going on? So we all have a cap on the amount that we can save into our

pensions and benefit from the tax perks that we all get.

So there's, at the moment, I think it's 1.25 million,

but there's a suggestion that that might be lowered,

which the problem here is that sounds like pots of money, right?

Why would anyone care who wasn't some sort of investment banker?

But over a lifetime, once you take into account things like any returns from investing that amount,

it starts to look like not such a big sum after all.

I think that the really important thing, the really important way to think about this,

is that a £1 million pension pot, which is what they're suggesting taking the lifetime allowance down to,

if you have a defined contribution pension,

which is what most of the younger generation of pension savers,

you know, people below their mid-40s, for example, have now,

unless they work in the public sector,

a £1.1.1 million pension pot will secure you an income of 27,000 pounds a year.

Now that is plenty of money, you know, but there's a lot of people who will be hoping

for a higher retirement income than 27,000 pounds a year.

And it should be very concerning that the government, this government, has cut that lifetime allowance,

and the Labour Party has said it will cut it, and there's suggestions that the Tories are going to say that they'll cut it as well.

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