Pensions - Articles - Hymans Robertson comments on Conservative pension policy

 A Conservative majority has ended any possibility of the pension freedoms being repealed. But there is a pressing need to ensure fairness between DC and DB members and not make taxation decisions just based on earnings. Current proposals will leave private sector DC members significantly penalised by tax. The life time allowance cut to £1m will likely impact 15-20% of people and not the 4% that the Chancellor originally predicted. It will be harder for DC members to save enough to match a DB pension.

 “It’s also arguable that capping DC earnings over £150,000 will likely complicate the tax system. It would be better if the new Pensions Minister took a holistic view of pensions and moved to a single rate of tax relief.

 "Ultimately the triple lock isn't sustainable over the longer term, at some point this will need to be addressed. While the start of a new Parliament would be a good time, it is unlikely to be a policy decision the Conservatives progress."

 “Leading on from the past five years of pension policy, there are a couple of key considerations that were left out of the manifesto but may be considered for future reforms. Firstly there is the extension of the pension freedoms and whether DB members who are already drawing on their annuity will be able to sell. Secondly will be the wider savings landscape and how pensions will continue to sit alongside ISAs given the proposed reforms on pension tax relief.”