“While the delay in implementing the secondary annuity market to 2017 may not be welcomed by some, it will give all concerned time to build a system which is robust and provides the in-depth package of safeguards that consumers need. Making the choice to sacrifice a guaranteed income should not be made lightly or without proper assistance.
“The decision to extend the Pension Wise service to those aged 50 and over is excellent news and should be welcomed. While it is obviously not ideal to wait until your fifties to start planning retirement, guidance will help those who have, improve their later life financial outlook.
“Many of these may well be on lower incomes and the increase of the tax-free allowance to £11,000 will be of benefit to them and the almost 12 million taxpayers earning £15,000 or less. On the other hand, less than 2% of taxpayers earn £150,000 or more so today’s decision to limit pensions tax relief for these people may be more populist than practical. There are other options for tax free savings such as ISAs so it will be interesting to see whether this raises revenues or simply changes people’s retirement savings habits.
“The announcement that a Green Paper will be launched to look at pensions – including the possibility that these products could be taxed like ISAs – is likely to promote much debate. Will treating them like ISAs mean they are accessible during a person’s lifetime? Will this simplify the entire pension’s tax system? There are a great many questions to answer and we look forward to participating in the consultation.
“While today’s budget is likely to be popular with 52% of over 21s support increasing penalties for tax avoidance by business and 39% want to see stiffer penalties for individuals who avoided tax. In addition, 32% felt that there should be a limit to the number of children you can claim Child Tax Credit for – a move that the Chancellor announced today.
“As the Chancellor said, this budget promises challenges for many as we work towards an economy built on the more secure and productive foundations of saving and long term investment”
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