News Analysis: Intent on occupying the middle ground
In less than a month, we will have a new government.
And yet another is that people have other fears that go much deeper. They remember pensions mis-selling and scandals surrounding Equitable Life and Robert Maxwell. They don't trust the industry, and now they don't trust government not to tax pensions further.
There is another way, a less rigid, simpler scenario, based around Isas and Child Trust Funds (CTFs). It would be a bold move away from traditional pension schemes, but the enhanced flexibility might just be the trigger for greater retirement saving across the country. Certainly, employers and individuals seem to be finding the argument for corporate Isas increasingly attractive.
Tisa has been encouraging government ministers to reflect on the possibility of establishing a halfway house, something that can provide consumers with the flexibility they are looking for, while giving the government the assurance it needs the individual is still making provision for their retirement.
Meanwhile, CTFs have revealed a universal willingness among families across society and around the country to save and invest for their children's future – and the message is spreading. The CTF is straightforward. It is to promote financial understanding among 100 per cent of the population by the time they reach 18 and provide them with a financial asset to help them in their start in life as adults.
The next generation's prospects are being enhanced. In 11 years' time, there will be no financial exclusion for these 18 year olds - they will be much more familiar with the savings and investment market and have an existing relationship to build on. And who knows, if we can put an end to financial apathy, one day, we may even manage to curb political apathy. I wonder who will be getting your vote this time.
Tony Vine-Lott is director-general at the Tax Incentivised Savings Association