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Eversheds comment: Autumn Statement - real pensions fireworks reserved for next Spring

  • Global
  • United Kingdom

    25-11-2015

    Commenting on pensions measures surrounding today's Autumn Statement, Francois Barker, Head of Pensions at law firm Eversheds, says:

    “It was a quiet one for pensions for a change! Despite performing a U-turn on tax credits the Chancellor resisted announcing radical changes to pensions tax relief, for now. However, the fireworks have been reserved for next Spring with the Treasury confirming that the response to its consultation of reforming the current system of pensions tax relief will be published at the next Budget. The outcome of that consultation will have a major impact on the future shape and direction of the pensions industry and the adequacy of retirement savings so all eyes will be on the dispatch box next Spring.

    "The Chancellor did dip into the pensions pot, however, to help balance the books by announcing a delay of 6 months for the increases to the auto-enrolment minimum contribution rates originally scheduled for October 2017 and 2018 respectively. This is expected to save the Treasury over £800m in tax relief. Given the need to get people saving more for their retirement sooner rather than later this announcement is unfortunate.”

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