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Savers could be set to incur 25 percent levies on any additional income they withdraw from their pension pots.
Indeed, if a person chooses to draw down a lump sum they could be hit with a 55 percent tax charge.
However, Mr Sunak has said the second point of his plan - which appeared to focus mainly on taxes - was necessary due to high levels of Government borrowing.
Peter Glancy, head of policy, pensions and investments at Scottish Widows, also expressed concern about the measure, stating: “Freezing the ’Lifetime Allowance’ is self-defeating. While its cousin the ‘Annual Allowance’ caps the amount of tax relief that savers receive, the ‘Lifetime Allowance’ caps the amount of taxation that people eventually pay back to HMRC when they subsequently take money out of their pension. ....

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