Budget 2016: Pensions escape the axe… for now
PENSION savers breathed a sigh of relief as the Chancellor left the way they save for their retirement unchanged.
Experts had predicted that the Chancellor may announce a raid on pensions
There had been speculation that tax relief on pensions would be cut or that the current system would go in favour of a Pension ISA.
The Government said: “Now isn’t the time, with uncertainty in the global economy and reforms such as auto-enrolment bedding in, to turn things on their head.”
Experts warned the axe could still fall.
Budget 2016: The Highlights
Pensioners will breath a sigh of relief as their savings remain untouched
David Robbins at Willis Towers Watson said: “Osborne’s Budget speech said only that there was ‘no consensus’ for this, and not that he had been persuaded it was a bad idea.”
The axe could still fall on pensions savers later in the year
Simon Smallcombe of AXA Life Invest UK said: “The axe could still fall on pensions savers later in the year.
“What savers need now is certainty that their savings will result in a decent income in retirement.
We remind savers of all ages that a good old pension is still the most tax-efficient way to save.