Archived article: Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
AJ Bell is petitioning the government to make a public commitment not to alter key pension tax incentives – tax free cash entitlement and tax relief – for at least this parliament.
If you share this view, add your name to AJ Bell’s petition, with 10,000 signatures forcing a government response.
When people save in a pension they enter a tax pact with the government. Take-home pay today is sacrificed for the long-term, on the condition that it will instead be taxed on withdrawal and comes with the added benefit of a 25% tax-free element.
That is the foundation of pension saving in the UK and requires a long-term commitment from the government, matching the long-term financial decisions of savers preparing for retirement.
Individuals save in good faith and should not be subject to endless speculation the government may move the goalposts before they’re able to access their money.
Committing to a ‘Pension Tax Lock’ would show government is serious about a fair deal for workers, allowing today’s savers to enjoy the same pension tax incentives as their parents.
It would also lay down the gauntlet to any future government tempted by a pension tax raid, offering long-term security to savers through a policy commitment that doesn’t require any increase in government spending.
Tom Selby: Director of Public Policy
Tom Selby is AJ Bell's Director of Public Policy. He joined the company in 2016 as a Senior Analyst before becoming Head of Retirement Policy. He has a degree in Economics from Newcastle University.
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