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Budget 2016

Budget 2016: Expert comment on Pensions

Chris Faulkner, associate director at Grant Thornton UK LLP, commented: "Whilst the rollercoaster of speculation on pensions ground to a halt in the weeks leading up to the Budget, we know that saving for the future remains a key concern for the government. 

"The Chancellor appears to have wanted to introduce a pension ISA where the tax relief is given on the way out rather than the way in, effectively moving the cost burden to the next generation. The Lifetime ISA is in effect a watered down version of this and it will be interesting to see if the under 40’s divert savings from pensions to the Lifetime ISA over the years to come. 

"Simplicity is good, but continued uncertainty could be harmful to growth and investment over the coming years. Employers are crucial to encouraging pension saving and the uncertainly may lead some to put any plans to promote their pension on hold.”