The ABI has issued a five-point plan aimed at addressing Britain's £27bn annual savings gap. In a ...
The ABI has issued a five-point plan aimed at addressing Britain's £27bn annual savings gap.
In a speech to the All-Party Parliamentary Group on Insurance and Financial Services, ABI director general Mary Francis outlined the association's proposals for a pension contributions tax credit.
This is intended to encourage employers to contribute to employee pensions, thereby reducing the savings gap by £3bn. Regulatory reform of the sale of savings products could further reduce the gap by £4bn-£5bn as more people would gain access to appropriate financial advice and simpler products, Francis said. Reductions in the costs that unnecessary regulation imposes on the process of selling savings products would be key to this proposal, she added.
The ABI is also suggesting a new incentive for employers to stimulate greater availability of financial advice via the workplace, estimating that for a cost of £500m a targeted tax rebate could close the gap by a further £2bn.
What made financial headlines over the weekend?
Compared to 6% of 55-64 years olds
Sam Gold and Doug Abbott to take reins
Bionic advice for private clients