Much beleaguered pensions savers can draw a sigh of relief today more because of what was not said in the Autumn Statement than by what was. The past few Budgets have seen Government sights firmly on pension tax reliefs, making swingeing reductions to both the aggregate size of individual's pension savings and the amount they can save each year.
BROADSTONE welcomes the decision of the Chancellor to resist giving pension savers a further blow by tinkering with one of the remaining shining lights of pensions saving, the much loved tax-free lump sum at retirement. He also resisted amending the tax relief rules so that higher rate tax payers can still reclaim the full value of the contributions. Pensions can for the time being remain a key part of an individual's retirement planning and we welcome any brief period of stability for savers.
Further, with the proposed accelerations to the rise in the State Pension Age, Mr Osborne has highlighted the importance of private pensions savings.
Simon Nicol, Pension Director at BROADSTONE, commented "People aged in their 20s and 30s are going to be a long time working and so if they want to retire before their very late 60s or even early 70s then private pension provision is the answer and this is where auto-enrolment into workplace pension is so welcome.
If there is one take away point from this Autumn Statement it is this. Those people planning to rely on State benefits to provide for later in life must take responsibility to save for their retirement or be prepared to work until they drop."
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