Bringing you live news and features since 2006 

APFA urges Treasury to leave pensions tax relief alone


The Association of Professional Financial Advisers (APFA) has called for the UK Treasury to focus on increasing auto-enrolment savings rates and not fiddling with the tax relief for pensions.

APFA’s paper, produced in response to the Treasury’s Strengthening the incentive to save: a consultation on pensions tax relief, supports the government goal of increasing pension saving, but says this would be better achieved by raising auto-enrolment default rates. Reversing the system of tax relief to a “taxed; exempt; exempt” model would endanger the future of pension savings.
Chris Hannant (pictured), Director General of APFA, says: “I am concerned that the suggestion that people would pay tax now and having to trust a future government to honour a promise it didn’t make would destroy pension saving as we know. Who would trust a future government not to fiddle with pensions?
“Messing around with tax incentives at a time of such huge change for the whole pension sector seems like madness. Auto enrolment is going to provide a huge challenge in capacity as the volume of firms staging peaks next year. It took the Pensions Commission several years to conclude that auto enrolment would be the best way to get people to save. Building on this by increasing rates will do more to make people provide for the future than tinkering with the tax system.”

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
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