Tax relief change could end in 'pension implosion'

Smith addressed the NAPF Conference 2015

Helen Morrissey
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The government's tax relief consultation could result in a "pension implosion" which derails the long-time aim of getting people to save for retirement, according to the National Association of Pension Funds' (NAPF) chairman.

Addressing delegates at the NAPF Annual Conference, Smith said proposed tax change could "dig up and smash the foundations set to create a society of lifetime savers putting pressure back on our ageing society". He comments follow a government consultation which could radically alter the way pension contributions are treated in terms of taxation. At present, the country operates on an exempt, exempt, taxed (EET) model but the government is open to moving towards a taxed, exempt, exempt (TEE) system similar to the ISA-style tax set-up. Centre for Policy Studies fellow Michael Johnso...

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