The Resolution Foundation and Centre for Economic Performance have proposed a number of changes to pension taxation, including: Cutting the tax-free lump sum from £250,000 to £100,000 for those who reach retirement after 2028. Levying inheritance tax on pension pots, with the first £1 million of a pension pot being exempt. Hiking capital gains and dividend tax. Lifting the burden of paying National Insurance on pension contributions from individual savers, and placing it on employers instead.