Andy Bell, Chief Executive of platform provider AJ Bell says, “Savers are frightened by rumour and press comment in advance of every Budget and Autumn Statement. The financial services industry peddles higher rate tax relief on a buy now whilst stocks last basis which does no one any favours and is a self fulfilling prophecy. The greater the scaremongering, the larger the pension contributions, the higher the cost to the Exchequer, the increased likelihood of a change.”
Bell continues, “Altering the fundamentals of tax relief rules on pension contributions is a temptation that no Chancellor can ignore in times of weakness. This short term sugar rush will lead to the disengagement of long term savers.”
“It’s a reckless Chancellor that instigates a smash and grab policy that would relegate Gordon Brown’s £5bn a year raid on the pension’s industry to the minor misdemeanour of petty pilfering”
“A key role of government is to create an environment to encourage savers to make provision for their old age. Savers are quite frankly fed up with the uncertainty and constant changes to the rules and regulations.”