Andy Bell, chief executive of AJ Bell, comments:
“There was a refreshing lack of pensions changes in the Autumn Statement as the Chancellor resisted the lure of the tax relief honey pot. However, it’s clear that the public finances are not in good shape and the £21 billion net spend on pensions tax relief will not have gone unnoticed by the new Chancellor.
“This £21 billion should not be viewed as a cost to the Exchequer but an investment in the future of our country. People not saving enough for their retirement is one of the biggest social crises we face and the Chancellor needs to ensure the investment is commensurate with the reality that private pension savings are still woefully inadequate.
“Now is the ideal time to appoint an independent pensions tax relief commission with the remit to review the levels of private pension savings in the UK and the incentives that encourage those savings. This review should be conducted behind closed doors, rather than in the public glare, and have the freedom to recommend a long term pensions tax relief strategy without being encumbered by short term political pressures.”