The Government has confirmed it will reduce the amount people can save into a pension tax free to £1m and plans to link the limit to inflation from 2018.
Chancellor George Osborne says this will save £600m. The lifetime allowance has been £1.25m since April 2014. It was previously £1.5m before being cut by the Coalition Government in the 2012 Autumn Statement.
Osborne also ruled out cuts to the annual allowance.
The annual allowance is currently £40,000. In 2013/14 it was £50,000 and in 2010/11 £255,000.
The Lib Dems and Labour have previously called for the lifetime allowance to be brought down to £1m, with Labour pledging to use the money raised to fund a reduction in university tuition fees.