The industry has welcomed the Treasury's plans to simplify the pension allowance system but should it go further to encourge long term saving?
We know many people, especially high earners, are no longer relying on pensions to fund their retirement.
But should the link between pensions and tax wrappers such as ISAs be made more explicit or is the system best off left alone?
Fidelity is calling for a single annual cap on tax-advantaged savings to include both accessible ISA savings and restricted access pension savings.
"This would replace both the current annual ISA allowance and the Coalition government's planned annual cap on pension contributions," it says.
It also believes investors should be given a financial incentive to transfer their accumulated ISA savings, which they can access at any time, into a pension pot where access is restricted. They should be able to do this outside the new annual allowance restrictions but with relief at the marginal rate.
Do these plans make sense or would they be a disaster for your clients?
Have Your Say here or e-mail me at: [email protected]
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
What made financial headlines over the weekend?
To promote 'long-term investment'