George Osborne is in danger of single-handedly destroying
the pensions industry.
First, the so called pension freedoms. I’m not sure his opposite numbers in the DWP knew it was coming. Definitely his initiative- and with unforeseen (or seen and discarded) consequences. By copying the Australian model, we are in danger of opening up the nation to ‘double dippers’ as Australia calls them. People that take their cash, miss-use it, or miss-calculate and end up dependent on the State to survive.
And now a consultation document considering scrapping tax relief on pensions. Throughout my 38 years in the pension industry, alongside company contributions, the one thing that ‘sells’ pensions to youngsters is the tax relief. If pensions get treated the same way as ISA’s, then ‘goodbye pensions’. The industry becomes a savings industry, and over time (with unforeseen consequences and/or an uncaring Government), people will find that they didn’t save enough and can’t live on what’s there in retirement.
Short term treasury gains are in danger of sending the next generation into retirement poverty.
First, the so called pension freedoms. I’m not sure his opposite numbers in the DWP knew it was coming. Definitely his initiative- and with unforeseen (or seen and discarded) consequences. By copying the Australian model, we are in danger of opening up the nation to ‘double dippers’ as Australia calls them. People that take their cash, miss-use it, or miss-calculate and end up dependent on the State to survive.
And now a consultation document considering scrapping tax relief on pensions. Throughout my 38 years in the pension industry, alongside company contributions, the one thing that ‘sells’ pensions to youngsters is the tax relief. If pensions get treated the same way as ISA’s, then ‘goodbye pensions’. The industry becomes a savings industry, and over time (with unforeseen consequences and/or an uncaring Government), people will find that they didn’t save enough and can’t live on what’s there in retirement.
Short term treasury gains are in danger of sending the next generation into retirement poverty.
'Amen' to both! So good news that George has announced that he is dropping his plans to change the pensions tax relief system......as long as he keeps his word! As you say, 'tax relief' is the most effective way of encouraging people to pay into pension schemes. Thousands of people in 'contracted-out' pension schemes will see their NI Contributions increase in April 2016 by up to £40 a month, when contracting out ceases, which may well lead to some opting out - the last thing we want is a 'double whammy' with tax relief being taken away or reduced!
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