More than a million savers will be caught out by complex pension tax rules that punishes workers for saving too much towards retirement. 

Pension tax charges can be as high as 55pc for those who breach a limit known as the “lifetime allowance”. This caps tax-free savings at £1,073,100. 

The allowance usually rises in line with inflation each year. However, the Government froze the limit until April 2026, blocking a bumper increase over the coming years as inflation surges to 30-year highs. Nearly half a million diligent savers will lose out to the Chancellor’s stealth raid as a result. 

Telegraph Money has called on the Government to reverse the freeze and allow the threshold to rise with inflation. Use our tool, below, to work out whether you will breach the lifetime allowance by age 65 and if so, at what age.