‘Build on what already exists’: Pension specialists

‘Build on what already exists’: Pension specialists

There is no link between the perceived complexity of pensions tax relief and public reluctance to save for retirement, according to members of the Pensions Management Institute.

A recent survey of PMI membership coinciding with the government consultation on pensions tax relief showed only 11 per cent believed the complexity of the current system undermined individuals’ potential to save, while almost 22 per cent felt any changes would make no difference.

PMI president Kevin LeGrand said: “The clearest message coming through is that auto-enrolment and pensions freedoms have provided a strong base on which to build, and the industry would rather work on that than make any further radical changes.”

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Adviser view:

Mike Prendergast, managing director of IFA Zen Financial Services, said: “Apart from some very rich people who find the lifetime allowance could cause tax bills, I think pensions tax relief works well for most people and does not put them off from saving.”