The Association of British Insurers (ABI) has submitted its response to the Treasury consultation on changes to tax relief for pension contributions.
According to the organisation, an annual allowance of £45,000 would keep the maximum number of people saving into a pension and still raise the revenues the government needs.
The Treasury's initial consultation suggests a range between £30,000 to £45,000, but a limit below £35,000 would be "unworkable", says Maddie Craig, director general of the ABI.
She argued that this would require "too many exemptions" and fail to restore the simplicity needed to rebuild consumer confidence in pensions following the financial crisis.
"It needs to work for a range of individual circumstances so that consumers can have the greatest control over how they save towards their retirement. The new rules must also avoid new complexity, through reducing the lifetime allowance or capping relief at 40 per cent," she noted.
Posted by James Harrison 