Pensions - Articles - Comment on reported pension tax changes

While this would be welcome news for pensioners on the lowest incomes, it would not apply to millions of retirees who have additional income from workplace or private pensions and would continue to pay income tax under the existing rules.

 

Kate Smith, Head of Pensions at Aegon, said: "If these reports are confirmed, protecting those who rely solely on the State Pension from paying income tax will be welcome news for some of the lowest-income pensioners.

 

"However, there is a risk that creating a more generous tax position for those who have not built-up additional retirement savings could be seen as unfair by people who have had the means to do the right thing and saved through workplace and private pensions.

 

"Long-term pensions policy should be guided by fairness across generations and between different groups of savers, rather than short term measures designed to fix one specific issue. Any reforms need to support adequacy, reward saving and command confidence across the whole retirement system."