This week we have had to deal with the delightful news that chancellor George Osborne has confirmed the changes to pension scheme death benefits.
Sure, he provided some nice headline-grabbing quotes, but as there was so little actual detail, we and our clients have been left grasping for more information before we can make further retirement-planning decisions.
Within a matter of hours, there was a further announcement or ‘clarification’ on annuities; later still, confirmation seeped out regarding certain defined-benefit schemes.
And why, pray tell, do I think George broke this news early?
Political point scoring – nothing more and nothing less.
Surely nobody has cottoned onto the sheer level of increased tax revenue this will raise?Is he worried that people have already forgotten he has opened Pandora’s box? Does he think cynicism is building regarding the whys and wherefores?
Surely nobody has cottoned onto the sheer level of increased tax revenue this will raise or the impact on marginal voters in the forthcoming general election? No, I can’t see that at all.
I would have much preferred for the announcement to have, as scheduled, been part of the Autumn Statement with a properly thought out and cohesive breakdown of all of the changes, so that as an industry, we could formulate our plans properly before imparting the news to our clients.
Jonathan Bray is head of corporate services at Three Counties
