Pensions - Articles - AXA Wealth comment on 4 step plan for a savings culture

 “The Chancellor has revealed his four card trick to get Britain saving for the long-term. This is good news, as more needs to be done to remove some of the barriers and encourage people of all ages and backgrounds to save what they can, when they can; helping the country adopt a savings culture.
 
 “Introducing a simple personal savings allowance will mean workers and retirees will see better returns on their hard-earned money at a time when interest rates are at record lows.”
 
 “Allowing people to take money out of their ISA and put it back later in the year without losing their tax free entitlement gives them much greater flexibility to use their savings when they need to, without worrying that they won’t be able to top them up when they can afford to. And the introduction of a Help to Buy ISA should encourage younger people to save for their own future.
 
 "The Chancellor’s plans to extend the new pensions freedom and flexibility to those already in retirement seems a sensible development to this April’s reforms. For the vast majority keeping an existing annuity will probably be the right option, but offering greater flexibility to all people to make a decision about how they use their own savings is welcome news. However, just because you can sell your annuity doesn’t mean you should rush to do so, it may be well worth getting some advice first.
 
 “The reduction in the lifetime allowance was expected and means that those people affected will need to consider different savings vehicles for the long-term. We know that people are living longer than ever before, and most underestimate how long they are going to live for. By looking at a wide range of savings vehicles, people can overcome the risk they are going to outlive their savings.
 
 “Planning for retirement and managing tax efficiently is complicated and people should seek independent financial advice before taking any action.”