Shifting pension tax relief towards an ISA-centric model will "not simplify anything" and could further discourage saving by demonising older products, Alastair Conway has said.
James Hay's chief executive said while there was some merit in moving to a flat-rate tax relief system the government's recent consultation "missed the point" as perfectly good products already existed. "The way we communicate this stuff is the problem. It isn't about ‘product a' or ‘product b'. People want to build up money in pots with different tax advantages. Some people will do that with advice, some people will do it without. "We seem to be in a world which is all about proving how clever we are in terms of designing products but nothing is being said about changing the language...
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