As we get ready for the summer Budget Helen Morrissey is concerned by how potential tax relief changes could affect pensions.
As I write this editorial we are gearing up for George Osborne's summer Budget. The contents of this speech will do much to determine how my week will pan out. A relatively quiet Budget for pensions will see me able to leave the office at a decent hour.
However, if Osborne decides to do some serious tinkering then I will essentially be chained to my desk for the next few days - I still haven't fully recovered from the 2014 Budget.
Over the weekend we heard stories that cuts in pensions tax relief could be used to effectively fund the end of inheritance tax on family homes worth up to £1m. We will wait and see exactly how this is expected to work but it confirms many people's suspicions that tax relief could prove just too tempting a target to resist.
Steve Webb said tax relief cuts could lead the industry "into a very dark place" and I agree with him wholeheartedly.
But what would such tax relief cuts mean? At last week's Pensions & Benefits UK former pensions minister Steve Webb said tax relief cuts could lead the industry "into a very dark place" and I agree with him wholeheartedly.
Yes, tax relief on pensions costs a lot of money but forms a powerful incentive for people to save into a pension - and a large part of the tax is deferred rather than waived.
Tinkering around with it too much does much to undermine people's confidence. We've seen massive changes to annual allowances and lifetime allowances - how can anyone plan for their retirement if they feel the scenario is always open to major change?
There is also the well-made argument that any changes to higher rate tax relief will only serve to turn higher earners away from pensions. In many cases these people are the employers who we are relying on to auto-enrol their staff into a pension. Now they might comply with their duties in enrolling their staff but how much time are they going to spend in driving up engagement in a savings vehicle in which they have no faith? I think we are heading into a very dark place indeed.
Chancellor Rishi Sunak has warned that the UK’s “economic emergency has only just begun”, as he revealed that the Office for Budget Responsibility (OBR) has forecast the economy will contract this year by 11.3% - the largest fall in output for more than...
The UK’s cumulative excess deaths figure for 2020 is higher now than at the previous peak of 64,600 recorded during the first wave of Covid-19, the Continuous Mortality Investigation (CMI) says.
Trustees must be “accountable for the security of data and assets” to protect schemes and members from the risk of cyber attacks, according to The Pensions Regulator (TPR).
In this week's Pensions Buzz, we want to know whether you support the ruling that defined benefit (DB) trustees must equalise GMPs in past transfers.
More than £130bn of company funds are tied up in pension schemes specifically due to lower than expected levels of life expectancy improvements over the last decade, according to PwC.