22 Oct 2015

The cost of current reliefs on pension saving is significant

We have taken as our starting point — based on repeated comments from Treasury — that the objective of the “Strengthening the incentive to save: a consultation on pensions tax relief” consultation is to review the effectiveness of the current structure of incentives available to encourage pensions saving.

However the Treasury consultation also stresses that the cost of current reliefs on pension saving is significant.

There are relatively few comparable opportunities available to the government to improve public finances to the extent of pension taxation, and we accept that it would be reasonable for Treasury to question the overall quantum of relief offered.

The proposals we have set out (Click here to read more) address both the incentive and overall quantum of support for pensions.

This article was provided by Aon Employee Benefits