Chancellor Jeremy Hunt is reportedly exploring plans to increase the tax-free pensions allowance as part of his Budget package.
The aim is to reverse the trend of early retirements and to bolster the UK workforce.
At present, the lifetime pension allowance (LTA) stands at £1.07m, with tax incurred beyond that.
Reports differ on how much the LTA may be raised by in the Budget, but a wider shake-up of pensions is also expected, including an increase in the annual allowance rate.
Chancellor Jeremy Hunt is looking at increasing the tax-free allowance for pensions to help counter the trend of early retirements and boost the UK's workforce.
The current lifetime pension allowance (LTA) is set at £1.07m, with tax incurred on higher amounts.
Hunt's plans to raise the LTA as part of the Budget are unclear, with different reports suggesting various figures.
The wider pensions shake-up could include an increase in the annual allowance rate.
According to The Independent, Hunt's move comes as he attempts to deliver on the Prime Minister's pledge of growing the UK's stalling economy.
The article notes concerns among economists that a large proportion of the workforce can't afford to retire fully, leading to vacancies that can't be filled.
A separate report by PA Media suggests Hunt is looking to increase the LTA to around £1.5m.
If true, the move would mark a considerable increase on the current level.
The article notes that, outside of this change, there are a range of potential reforms to the pensions system being discussed in the run-up to the Budget, including a review of pension tax relief.
Sky News takes up the same story and reports comments from Tom Selby, AJ Bell's senior analyst, who suggests that whilst an increase in the LTA would be a positive move, "it is unlikely to have much impact on the vast majority of savers".
Selby also notes that "if the Chancellor opts to increase the LTA he risks contradicting the Government's pledge to lock-in a triple-lock guarantee on the state pension" due to the significant cost of this policy.
The Times has a different angle, emphasising the gap between public and private pensions in the UK. The broadsheet reports that the "richer half" of retired public sector workers receive pensions worth 13 times more than retired private sector workers, a figure that has increased rapidly in recent years.
The paper suggests the issue is growing and has prompted a number of CEOs to question the fairness of the current system.