Pension relief to be cut?
Despite the worldwide pension crisis, the UK government seem determined to reduce pension relief tomorrow. Unfortunately pensions are too easy a target for government short of ideas and willing to sacrifice people’s long term future . The government may think they need cash today but they are discouraging pensions at exactly a time they need to be encouraged.
Pensions minister Steve Webb strongly hinted there will be action on tax relief in the Autumn Statement tomorrow whilst speaking today at the National Association of Pension Funds’ trustee conference
Reports at the weekend suggested the Chancellor is considering cutting the annual allowance from £50,000 to £40,000 or £30,000, saving the Treasury between £600m to £1.8bn a year. If pension relief is reduced then it will also reduce the benefit of company pensions to many.
Nigel Green deVere Group
Blog written December 4th