After the sweeping changes introduced last April, and with the industry expecting a further shake up, the Chancellor steered away from reforming pension tax relief and contributions and concentrated instead on boosting the savings of young adults for house buying, announcing the introduction of the new “Lifetime ISA”. Industry commentators have railed against this as undermining the Government’s own push to promote pension saving among young employees and likely to lead to confusion.
The Chancellor also announced that the Government will ensure that the industry designs, funds and launches a pensions “dashboard” by 2019. This builds on recommendations of the Financial Advice Market Review and will allow an individual to view all his retirement savings in one place.
The Chancellor stated that there will be an increase to the existing £150 income tax and National Insurance relief for employer-arranged pension advice to £500.