Improve tax incentives for employers over advice

The retirement product lead at life and pensions provider Skandia said the government should increase tax exemption for an employee receiving pension advice paid for by an employer.

At the moment, advice up to the value of £150 is exempted, but Mr Champion said the amount of income tax relief available should be increased to at least £300.

He said: “As a person’s workplace becomes their major reference point with regard to their pension, it makes sense for the employer to be able to help their employees get access to quality advice. Extending the tax relief available could ensure that more of their employees receive a better financial outcome, in retirement in particular.”

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Adviser view

Adrian Murphy of Murphy Wealth in Glasgow said: “I agree this is a good idea, although it may fall on deaf ears. It is well recognised that there is a savings gap, a retirement savings gap and a protection gap. If the government could introduce the change proposed, it could be worth it in the long run. It is, after all, for everyone, not just the rich or high earners.”