IFS: Pension changes will deter savers

News Update from CFM (UK) Ltd: Research by the IFS has concluded that middle-class savers will be "actively discouraged" from putting money in their pensions if George Osborne pushes ahead with plans to cut tax relief for high earners. The group cautioned that if the current system was replaced with a flat rate of relief of anything below 30%, those who had already paid more tax during their working lives would lose out in retirement. The report states: "The Government is currently considering what would be among the most radical changes to savings taxation in decades. Whatever the outcome of that, the frequency of change in recent years and uncertainty about future reform make it difficult for individuals to plan their long-term retirement saving." However, the IFS report also said that pensions are still the most tax-efficient form of savings.

The Daily Telegraph, Page: 1, 2, 14   Daily Mail, Page: 8   BBC News

Posted on February 17th 2016

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