Higher-rate tax relief on pensions could be on “borrowed time” approaching the next election, Sheriar Bradbury has said.
Mr Bradbury, chief executive of London-based Bradbury Hamilton, said: “All the parties have marked out higher-rate tax relief on pensions as a way of reducing the Budget deficit, so we know that it is on borrowed time.
“But arguably, it is also time for it to go, as it does not make any long-term social sense.”
Mr Sheriar also argued that under the current system, people who will not need the state pension are encouraged to save, but those who are likely to need state support will have fewer tax incentives to put aside money.
Adviser view
Gary Quick, director of Exeter-based Francis Clark Financial Planning, said: “The people that have the wherewithal to save have already been limited by restricting the annual allowance to £40,000. But I understand the man on the street may not understand those rules.”
