Pensions - Articles - What the Chancellor didn't say - Budget 2013

 Colin Richardson, Senior Corporate Consulting Actuary, provides additional views on the Budget from Buck Consultants:

 “This Budget was as much about what he didn’t do as what he did do. The retention of a 2% per annum inflation target is significant as to have changed to a nominal GDP target would have been a major blow to all who will have fixed incomes in retirement in any type of pension scheme. Furthermore, the pressure to reduce tax relief on pensions was extreme due to economic circumstances and to have not done so could be taken as a signal of future policy intention in this Parliament, as there will never be more pressure than now.

 “However, it wasn’t good news for annuity rates - giving the green light to further Quantitative Easing will do them no favours.”