Pensions - Articles - Labour pension tax plan gives quick win, no long term gain

 “While a policy that delivers a quick win for any Government’s balance sheet might seem lucrative, there is unlikely to be any long term gain for society or the economy. With the looming savings gap and substantial reductions in State Pension, the idea of a flat rate tax relief is a more sensible route to pursue.

  

 Commenting on the proposed changes to life time allowance and annual allowance Chris Noon said: “Yesterday’s ONS figures all pointed towards record numbers enrolled in work place pensions, with the tide moving towards defined contribution schemes. But as things stand currently, accrual rates on defined benefit pensions are far more generous, meaning members of these schemes can build bigger pension pots before being penalised by tax. Addressing this issue would be a far better area of focus.