Yesterday’s annual statement by the Chancellor George Osborne was a bit like a teaser for the real thing as far as the pensions industry was concerned, and in particular those involved with private pensions. Before the statement there was the usual speculation on what would be covered with many commentators focusing in particular on one area where the Chancellor might make an important statement.
Earlier this year the Government consulted on incentivising pension saving which concentrated on whether pension tax relief should change. Would there be a move away from the current EET model (where contributions and investment returns are exempt from tax but most retirement income is not) to something else? Was today the day we found out? Well, ‘No’, was the answer but although the Chancellor didn’t mention anything in his speech, he did put a teaser into the papers published after he sat down. (more…)