Aifa director general Chris Cummings says axing the limit will encourage firms and employees to access advice.
He adds: “In a downturn, access to independent financial advice is even more important, not least as it can help people re-engage with their long term financial well-being.”
Cummings is also calling on the Government to include measures in the Budget that will incentivise people to save for their future.
He says: “We would propose a review of tax incentivised savings regimes, an increase in Isa allowances and the encouragement of younger people to save for their future through the introduction of a tax free savings account which would help them obtain the deposit on a home.
“We want to encourage people to provide for their own futures, so a review of the crystallisation rules and taxation regime for pensions is also necessary.”