A tax measure introduced in the 2021 Budget to reduce the cost of pension tax relief for the government will raise twice as much for the Treasury as originally expected, new analysis suggests.

Private pension savers withdrew £3.57bn in the second quarter of this year, a 23% increase year-on-year.

Pension lifetime allowance (LTA) penalty charges surged by 21% in 2019-20 to £342m (2018-19: £283m), according to data released by HMRC.

Over 325,000 people have successfully applied for protection against breaching the Lifetime Allowance, according to a Freedom of Information response.