NAPF Comment on Finance Bill

Commenting on the pensions tax changes introduced in the Finance Bill published today, David McCourt, Senior Policy Adviser at the National Association of Pension Funds (NAPF), said:

“The pensions tax reforms being legislated in this Finance Bill move away from the previous Government’s proposals to restrict tax relief for higher-earners and introduce a much simpler and fairer approach based on a reduced annual allowance.

“We are particularly pleased that the new government listened to NAPF concerns and has introduced a new tax framework that will enhance, not damage, pension saving, and has taken welcome steps to protect moderate earners.

“However, the introduction of the new tax regime will impose significant additional administrative burdens on pension schemes and employers. The government now needs to commit to a period of stability in the pensions tax rules.  It also needs to start demonstrating progress against meeting its commitment to reinvigorate occupational pensions.”

Commenting on the proposed changes to annuity rules, David McCourt said:

“The removal of the requirement to annuitise by age 75 introduced by the Bill gives extra flexibility to pension savers in how and when they can start taking their pension income.

“Such extra flexibility can be useful, but these changes will mainly benefit those with larger pensions and multiple income streams. We think most people will still end up choosing an annuity.”

Notes to Editors:

1. David McCourt is available for interview.

2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contact:

Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446 [email protected]