TISA Budget 2014 Response – Pensions
In response to the changes to the pension framework announced by the Chancellor today, Peter Smith, Head of Distribution Engagement said:
“The Chancellor has dropped an unexpected pensions bombshell by announcing a radical overhaul of pension rules. New Pensioner Bond and the changes to give pensioners greater freedom in how they drawdown their pension savings – particularly the decision that it will no longer be a requirement to purchase an annuity – will help to rebuild consumer confidence in a pension as a retirement savings option. This is fantastic news for pensioners and savers and we hope to see this flexibility enhanced even further with the ability to transfer pension funds drawn down as tax free cash, including trivial commuted pension pots, into an ISA outside of the annual subscription limits. This would act as an added incentive to saving and enable people to manage their finances in retirement in the most tax efficient manner. We will continue to promote the benefits of this approach to government.”
The Treasury estimates 400,000 people will now have the option on accessing their savings with more flexibility in the financial year 2014/15 under new framework and from April 2015 over 320,000 people retiring from a DC arrangement will have more income choice.
For further information, please contact:Peter Smith, Head of Distribution Engagement, TISA – Mobile: 07885 342424
Email: peter.smith@tisa.uk.com
Notes for Editors
TISA is a not-for-profit membership association operating within the financial services industry. We represent the interests of over 145 member firms involved in the supply and distribution of savings and investment products and services.
TISA has a highly successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for consumers. Policy and regulation continues to be the major focus for our members with regard to corporate responsibility.
TISA and its members’ remit is evolving into a clearer focus on pro-active consultation in the regulatory world in order to influence policy and associated regulation before its creation, rather than reacting to issued policy directives. This will help to ensure a more considered policy creation from the authorities.