TISA comments on “Single Tier” pension White Paper
Malcolm Small, TISA Director of Policy said:
“The introduction of a flat rate state pension, with an end to means tested retirement income benefits, has always been essential if pension saving were to make sense for modest earners. The end of the State Second Pension will also help simplify an arcanely complex state pension system, and help give prospective pensioners a clear idea of what the state will provide – and just as importantly, what it won’t. These proposals are not perfect. With the end of “contracting out” there will be more NI to pay for many employers, and employees. The prospect of a “cliff edge” in April 2017, where those retiring one day are stuck with the old system and those the next day are on the new system, is hardly appealing. And there will be some losers in terms of state pension outcomes. But the greater good is served by having a simple, understandable, state pension, which gives a clear platform and incentive for additional saving. We have argued for a flat-rate basic state pension for years.
“Alongside automatic enrolment into pension saving, this is a vital reform that many thought would never see the light of day. The task now is to build consensus around it and push on to implementation, hopefully in 2017.”
Ends……
For further information, please contact:Malcolm Small, Director of Policy, Mobile: 07989 500771
Email:malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786
Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 130 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of savings vehicles & services and centralised investment propositions.