The Pep and Isa Managers Association is urging the government to reconsider the position of the tax efficient savings it represents within the scope of the Pensions Bill, which comes up for its second reading next week.
PIMA says some £30bn makes its way annually into Isas – more that the much repeated £27bn savings gap estimate – and adds the changes to rules on Isa savings limits will send the wrong signal to those already committed to long-term savings.
Apart from asking the government to reconsider changes to savings limits, PIMA is pushing for recognition of Isas as "an integral part of retirement savings".
In related news, the Association of Investment Trust Companies reports figures showing a 35% drop to £61m in the value of investments in ITs through Isa accounts last year compared to 2002.
The AITC says it is "disappointed" by the fall, which is somewhat exagerated by the seasonality of Isa purchases, but adds those investors who bought through regular savings schemes saw less volatile returns.
The Pensions Bill, published by the DWP is due for its second reading next Tuesday, 2 March.IFAonline
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