Pensions - Articles - Leave the pension tax system alone, says Aon Hewitt

 Aon Hewitt has asked that the Government should resist making any changes to the pension tax system.

 Liam Mayne, senior consultant at Aon Hewitt said:
 "Reports have indicated that the Government is considering revisiting the decision it made less than two years ago, when the annual allowance was set at £50,000.

 "More significant changes, coming off the back of those in 2006, 2009 and 2011 would further undermine the stability of the pension tax system. This is also at a time when with the introduction of auto-enrolment, the Government is trying to engage with both companies and the general population to get more people saving for retirement."

 Liam Mayne continued:
 "We would urge the Government to leave the pension tax system well alone until at least 2015/16 when it is committed to reviewing the current levels of the lifetime and annual allowances. There needs to be more time for the new regime to bed in and for confidence to grow in it.

 "Many companies have invested significant resource in re-designing their reward packages for those affected by the reduced annual allowance. They really don't need to repeat that process within the space of two years."