Pensions - Articles - Osborne should steer clear of Budget changes to pensions

 -Moving the goalposts may erode public faith in pensions
 -The Mutual calls for more stability from the Treasury over pensions
 -Flexibility could encourage more young pension savers

 Leaving pensions out of this month's Budget should provide extra stability to public confidence in the industry according to rural insurer and pensions and investment specialist, NFU Mutual.

 "Pensions will always be the cornerstone of retirement savings and there are generous benefits in place, particularly for those earning enough to be able to claim up to 50 per cent tax relief on their contributions," said NFU Mutual's pensions specialist, Steve Meredith.

 "The temptation will be there for the Chancellor to rein in the tax reliefs for higher earners in order to pay for other initiatives. We think Mr Osborne should steer clear of pensions. All people saving for retirement need reassurance that the Government isn't going to move the goalposts halfway through their working life.

 "Rather than adjusting tax reliefs, Mr Osborne should focus on encouraging more working adults to make a much-needed long-term financial commitment to their retirement.

 "If the Chancellor really wants to provide more flexibility in retirement savings he could allow for premature access to pension funds for one-off purchases such as a first time buyer's mortgage deposit. This may not only encourage people to start saving for retirement from a younger age, it could also give a sluggish housing market a boost.

 "More people need to make financial provisions for their retirement so we'd welcome any move by George Osborne to encourage this. People should take advice before and after the Chancellor's Budget on 21st March to help reduce their effective rate of tax."