Pensions - Articles - Reform to the pension system, reducing appetite to save?

 “There are many options being considered and one is that pensions could be treated more like ISAs, in other words no tax relief on contributions, but no tax on withdrawals. If this option passes a public consultation, it could see people having tax-free retirement pots topped-up by the government. 

 “If ISAs are the preferred option, it is worth noting that their popularity is due to their simplicity and flexibility compared to pensions. If you have the inflexibility of pensions plus deferred tax advantages, behavioural economics would suggest it could reduce consumers’ appetite to save.”