Tax relief at the point of retirement saving is the most powerful way to get people to create a later life nest egg, according to Zurich, making it the latest provider to come out against the government's plans to treat pensions like ISAs.
Zurich warned a change of the system to 'ISA-style pensions' would be detrimental to consumer saving. Recent research by the provider found more than two thirds of over-55s said contributing to a pension from untaxed income was the most powerful incentive for them to save for retirement. Pension saving products currently offer tax relief at the point of saving and get taxed when clients withdraw funds. ISAs accept taxed income but incur no further taxes at point of withdrawal. The government proposed aligning pension products with ISA-style taxation in a consultation following the ...
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