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Press comment: Tax relief figures show strong case for independent pensions commission

10/10/2019

If you are covering the publication of HMRC’s Estimated Costs of Tax Reliefs, please see below for commentary from Ian Browne, pensions expert at Quilter:

Ian Browne“When budgets get tight people often start looking at what is costing them the most and where they can start to save. The government is no different and pension tax relief is often one port of call when they need to cut back on the spending.

“Today’s figures on tax relief reveal the extent of the cost. With £21.2bn being spent on pension tax relief in 2019-20, and that’s before you factor in the relief on employer contributions to registered pension schemes. Once all that is added in you’re looking at £39.9bn in a tax year. And let’s not forget the cost of the state pension – which adds an additional £98.9bn.  

“It’s easy to see why that looks like an appealing chunk of change, particularly when we’re in the midst of political fight for power. However, any kind of reform needs careful thought and should not just be a political play.

“There is a strong case for government to establish a cross-party independent commission, similar to Adair Turner’s pension commission of the early 2000s. Retirement and savings policy is by its very nature a long-term matter, with policy decisions today having a ripple effect into the future and across generations. Savers and the pensions industry can’t afford for government to make mistakes on key pensions policy and establishing a consultative approach to policymaking via an independent commission would be responsible step for any government to take if they are serious about building a healthy and sustainable savings culture.”

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com
Gregor Davidson020 7002 716407917 522784gregor.davidson@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 £118.7 billion in investments (as at 30 September 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 advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes 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 as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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.