The life and pensions provider is pleased the Government is both listening to and working with the industry.
Friends Provident believes the Government’s proposal to reduce the annual allowance to £50,000 is absolutely the right move and argues the pledge will not only achieve the required savings, but will also avoid a wholly unnecessary and complex administrative nightmare.
The insurer believes this will help ensure key decision-makers within companies continue to participate in and promote their existing workplace pension arrangements. But Friends Provident argues the next step should be to index both the annual allowance and lifetime limit so they continue to be relevant to future retirement needs.
Trevor Matthews, chief executive officer for Friends Provident, comments:
“Today’s commitment to look at replacing the previous Government’s complex proposals with an elegant solution that achieves the same revenue objective is to be applauded. It is a welcome first step that begins to remove the uncertainty that has been lingering over pension planning in the UK for some time. I am hopeful the government will continue with this common sense approach and also consider indexing both the £50,000 annual allowance and the £1.5 million lifetime allowance limit on an annual basis.”
Source : Friends Provident Press Release
