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Press comment: pension figures are encouraging but problems remain

30/04/2019

If you’re covering pension figures from HMRC today please see the following comment from Ian Browne, pensions expert at Quilter.

Ian Browne“There are some encouraging figures on pensions today with a record number of people contributing and the amount per year on the rise. In fact the number of under 35s contributing has more than doubled since 12/13 to 3.5 million.

“Auto-enrolment is due a lot of credit for this success. We know that saving early is a crucial ingredient in building up a healthy retirement pot. As defined benefit pensions and other benefits enjoyed by previous generations are phased out, it will be increasingly vital for today’s working age people to set money aside throughout their careers.

“However, these figures don’t tell the full story as there remain pension inequalities throughout the nation. The split between men and women contributing to pensions remains 40% woman and 60% men across all age groups. We need to understand why and if policy is playing a role in that. Gender pension inequality has no place in the modern day.

“A pension pots start to grow and pensions tax policy changes come into play, people are increasingly falling into the scope of paying tax. In 16/17, the first year people were impacted by the tapered annual allowance, tax take was up over fourfold to £517m from the previous year. Planning is crucial here as there can be ways to navigate the tax landscape that can help people save thousands.

“Still pensions tax relief is still costing the government an eye watering amount at £38.4bn in 17/18 up from £37.3bn in the previous year.

“Government then face a tough balancing act of granting tax relief, but also balancing the books to ensure it doesn’t contribute to bankrupting the country.”

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

  • The Multi-asset business is now Quilter Investors
  • Intrinsic to Quilter Financial Planning
  • The private client advisers business is now Quilter Private Client Advisers
  • The UK Platform to Quilter Wealth Solutions
  • The International business to Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

 

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.