Pensions, savings and investments

Pension industry groups are warning that government plans to cut the tax relief available to higher earners on their pension contributions could have an adverse impact on the whole savings and retirement system.

Changes to pensions tax relief for higher earners could be counterproductive, it has been claimed.

Savers might have to be willing to tie their money into long term deals in order to enjoy reasonable returns on their investments.

Reforms to the pension system, planned for 2012, run the risk of adversely affecting the flexibility of the UK’s labour market, it has been argued.

Taxes may have to rise by significant amounts if the UK’s public finances are to return to balance in the timescale outlined by the Chancellor, a think tank has claimed.

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