UK Finance Minister Jeremy Hunt said he was abolishing the lifetime pensions allowance.
The allowance, currently at just more than £1m, is the maximum someone can invest in a pension before incurring taxes.
Many analysts had expected Hunt to raise the limit in an attempt to keep older people in work, particularly doctors in the NHS, many of whom have left early because their schemes attract hefty tax bills.
In addition, the annual pension tax free allowance was lifted to £60,000 from £40,000.
Reporting by Frank Prenesti for Sharecast.com