Pension tax relief provides crucial support for people by boosting their savings over the long term. But reducing the tax relief on pension contributions can be tempting for any Government seeking to reinforce its finances.
The problem is that currently people aren’t saving enough to have an adequate income in retirement. So, it’s essential any changes in pension tax relief make the situation better for savers, not worse.
THE CHANGE WE WANT TO SEE
We argue there is more value in addressing some of the specific and technical shortcomings of the current system, rather than embarking on major reform. It’s vital that any change to pension tax relief is based on the PLSA’s five principles.