You are here: Home - Retirement -

Faith in pensions in the balance

Written by:
More changes to the tax relief on pensions could destroy public faith in saving for retirement.

That’s according to financial services consultants Punter Southall.

Some forecasters believe the Treasury is considering further cuts to the annual allowance, which has already been reduced from £255,000 to £50,000, in a bid to save money.

Last December, the government published an estimate that a cut in this limit to £40,000 would save the Treasury £600m a year.

Others have suggested it may be cut to as little as £30,000.

But Punter Southall is urging George Osborne to leave the existing tax relief in place.

Mike Richardson, the group’s head of pensions taxation, said: “Faith in pensions as a form of saving for retirement is at an all-time low and making further changes to pensions tax relief now risks completely destroying any last remnants of that faith.

“The regime is already horrendously complicated, and any further alterations to pensions tax relief would be counterproductive and damaging to long-term pension savings.”

Richardson said new changes could appear “oddly disjointed” from other government policy, particularly considering the recent first-phase roll-out of auto-enrolment.

“Auto-enrolment will only be a success if employees believe that they can safely plan for their retirement using a pension, but that simply won’t happen if the government keeps changing the rules,” he said.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Flight delayed or cancelled? How you can claim £520 compensation

If your flight’s already been delayed or cancelled, or you’re jetting away this summer and want to be armed wi...

Could this be the secret to early retirement?

Taking an active approach to where your pension is invested means money is deposited into funds that can drama...

The essential money-saving guide for your 2018 holiday

Planning a trip away can be stressful, time-consuming and expensive but these are the industry’s top tips to e...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Banking crisis ‘as bad as a world war’

The banking crisis has been as damaging to the UK economy as a world war, a top Bank of England...