Savers back ISA-style tax system for pensions - research

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Workers believe the tax treatment of pensions is too complex and would welcome switching to a system that treats pensions like ISAs, according to research from PwC.

The consultant surveyed 1,197 employees and found two-thirds did not understand the current system while just one in seven said the tax relief on offer was an incentive to save. Just 27% of those surveyed wanted to keep the current tax situation where contributions and investment gains are exempt, but retirement income is taxed. Some 40% said they would rather contribute out of taxed income, and enjoy tax-free money in retirement. This was the option outlined by Chancellor George Osborne when he launched a wide-ranging review of the current system last month. Further reading: 'ISA ...

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