The government should allow investors to move assets between different wrappers more easily to aid retirement saving, Tom McPhail, head of pensions research at Hargreaves Lansdown said.
Currently, investors must sell their assets and pay the cash received into another savings vehicle, before repurchasing the asset via the new vehicle. This is due to HMRC's rule which states pension contributions must be defined as a monetary amount, and does not allow such in-specie contributions. McPhail said if in-specie contributions were simpler, it would be significantly easier for investors to move their savings from ISAs into pensions, fulfilling the Treasury's objective to promote flexible retirement savings. "Behavioural economics research shows if you want to get investo...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
