Queen's Speech: Missing Details Leave Pension Savers in Limbo

June 2017
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LEBC welcomes the Government’s stated aim to assist savers and those approaching retirement. However we do regret that there was no room in the Queen’s Speech to clarify the position of current pension savers who are affected by the Money Purchase Pension Allowance (MPAA) nor a renewed commitment to raise the tax free allowance for employer sponsored advice for employees from £150 to £500 per year.

Changes to both these allowances were due to be included in the Finance Bill but were weeded out due to the General Election being called.

This leaves older workers who have flexibly accessed their pensions unable to plan for their eventual retirement with certainty. They do not know if they can fully participate in their workplace pension without incurring a tax charge. This continued uncertainty is unfair and a simple statement from the Treasury could resolve this matter.

Similarly failure to confirm the non-contentious employer sponsored advice allowance increase to £500 a year inhibits those employers who wish to provide staff with pre-retirement advice, as they are unsure of the tax position for their employees on the cost of that. Again, a simple clarification would assist millions in receiving the help they need to plan for a successful retirement.

Kay Ingram
Director of Public Policy, LEBC

Please remember, no news or research item is a recommendation or advice to buy. LEBC Group Ltd is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment or product for your circumstances please contact an adviser. The Financial Conduct Authority does not regulate tax planning.

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