You are here: Home - Retirement -

Faith in pensions in the balance

0
Written by:
04/12/2012
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.

Tagged:

Tag Box

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.

Should you go private rather than make an insurance claim?

If you’ve experienced a minor bump with another driver, you may be tempted to settle the costs privately witho...

Interest rates could rise in May 2019 – economist

Brexit and slowing economy growth have quashed the likelihood of an interest rate rise from the Bank of Englan...
Interest rates could rise in May 2019 – economist

Brexit takes a toll on UK housing market

House prices will drop and fewer homes will be sold over the next three, according to the latest report from t...

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...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

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.

Money Tips of the Week

  • Are you married or in a relationship and still living at home with your parents? According to latest research as ma… https://t.co/SpiNzsKIi6
  • RT @TSB_News: Today we’ve launched market leading rates on the high street with our two-year fixed bond and two-year fixed rate cash ISA. R…
  • RT @TSB_News: Today we’ve launched market leading rates on the high street with our two-year fixed bond and two-year fixed rate cash ISA. R…

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...

Close