In the wake of Government taxation and spending plans disclosed by George Osborne in today’s Autumn Statement, financial planning specialist Siobhan Mail says the focus should be on the potential reductions in annual contributions and other pension benefits rather than the increase in State Retirement age.
Siobhan Mail, Director at Newport-based Seer Green financial planning specialists, said: “Although the increase in State Retirement age to 68 and 69 may have come as a shock to many, this had been expected in the industry for a while.
“With the main effect of bringing forward the planned increase to 68 still being at least 20 years ahead, instead of 30 years, it still gives those people in their 40s and younger enough time to prepare properly for retirement, something that is becoming ever more important.
“What may be of more concern to many is the apparent determination of successive governments to target the very benefits within a pension that set them apart from other types of saving, and currently make them an attractive proposition when people are looking at making a long-term commitment to improve their incomes in retirement, as the Government say they’re trying to do.
“Reduction in annual contributions from £50,000 to £40,000 and a reduction in the Lifetime Allowance from £1.5 million to £1.25 million are already in the pipeline, and fostering the perception that people’s pensions are under attack.”