Bringing you live news and features since 2006 

Make workplace access to financial advice easier, says Skandia

RELATED TOPICS​

Skandia has used its pre-budget submission to the treasury to call on the government to make it easier for employers to make quality financial advice available to their employees by extending the tax relief available.

In December 2004, the government introduced an exemption from income tax where an employee receives pension advice, specific to them, financed by an employer up to the value of GBP150. This was providing all employees could access the service.
 
Where the advice relates to more than pensions or is valued at more than GBP150, the employee is taxed on the value of the benefit provided.
 
Skandia believes that the amount of tax relief available should be increased to at least GBP300, to account for inflation and the wider financial planning issues that should now be taken into account.
 
As the workplace increasingly becomes the focal point for personal retirement savings, Skandia feels it is imperative that employees receive the necessary help to make the right decisions about their retirement savings. With the introduction of auto enrolment into workplace pension schemes and the complex decisions that have to be made when an employee enters retirement, financial understanding and advice has never been more important.
 
Skandia believes that the tax exemption should go further and cover more than just pensions. This is because pensions are just one financial product and decisions, particularly whether to join a scheme or not, should be taken together with an assessment of the individual’s other assets and liabilities.
 
Similarly, decisions about retirement income, if they are to result in the best outcome for the individual, should take account of more than just pension savings.
 
To limit the extra costs, and to further increase the chances of employers engaging with the process, they should be given the option to restrict the provision of advice to new employees, those approaching retirement and those approaching a significant lifestyle event.
 
Bob Champion, retirement product lead at Skandia, says: “Retirement planning is a complex area but as an industry we are sometimes guilty of expecting the consumer to have a high level of knowledge. It is the same with financial planning as a whole. As a person’s workplace becomes their major reference point with regard to their pension, it makes sense for the employer to be able to help their employees get access to quality advice.
 
“Extending the tax relief available could encourage more employers to engage with the process and ensure that more of their employees receive a better financial outcome, in retirement in particular.”

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by