Proposals to make pensions more like Isas “have the potential to do more harm than good”, creating a ‘ready-meal’ attitude to the savings vehicle, according to David Thompson.
Axa Wealth’s managing director of business development and proposition warned that while Isas have been “the ready-meal of the savings world”, pensions have had to be “the three-course dinner” of savings.
He said: “Isas are designed for shorter to medium term, flexible and easy to access savings: put as much in as you can afford today, but be reassured that it is there when you need it.
“However, pensions need to provide an income that lasts for 20, 30 or maybe even 40 years.”
Jonothan McColgan, director and chartered financial planner at Bath-based Combined Financial Strategies, said: “The disaffection with pensions is the result of systematic fiddling and changes to rules in a tax-efficient vehicle over the past 60 years.
“People do not trust them because they cannot rely on the government not to change the rules on what you can do with your pension 10 or 20 years in the future.”