Pensions  

Calls for PM to 'snap into action' on pensions

Boris Johnson has famously promised to "get Brexit done", but Aegon's pensions director Steven Cameron has urged the prime minister to look beyond the UK's departure from the EU and to those domestic priorities which have been "left languishing". 

Mr Cameron said: "We urge the new majority government to ‘unleash the potential’ for the UK to become world leaders in pensions and social care.

"Until now, finding a solution to the social care funding crisis has proved too hard for the government, but with the UK population continuing to enjoy longer lifespans, it’s one of our greatest societal challenges.

"According to the Conservative manifesto, the search for a cross-party agreement should start within the next 100 days. This, alongside delivering Brexit, could be the early defining deliverable for Boris’ incoming government." 

Sir Steve Webb, former pensions minister and director of policy at Royal London, said the return of a Conservative government could mean continuity in pension policy.  

He said: "One big outstanding issue is tackling the problems caused in the NHS by the tapered annual allowance for pension tax relief.  

"The ‘sticking plaster’ solution of a one-off payment of the tax bills of doctors does not solve the underlying problem.  

"The Conservative manifesto also promised a resolution to the longstanding problem of large numbers of lower paid workers missing out on tax relief altogether. It is to be hoped that these changes are made sooner rather than later."

When the Conservatives first published their manifesto it was criticised for a lack of detail on how the party planned to solve pension tax relief issues and what deadline they would be working towards.

Nigel Peaple, director of policy & research at the Pensions and Lifetime Savings Association, said the government had to prioritise pensions. 

He said: “Ensuring adequate contributions, fostering effective engagement and allowing well-run schemes to operate at appropriate scale provides the blueprint for making the greatest difference to the greatest number of people.

"We must get on with improving the system.”

rachel.mortimer@ft.com 

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