PIMA WELCOMES A SINGLE PENSIONS TAX REGIME AND HOPES THE CHANCELLOR WILL ALLOW MORE PROVIDERS TO OFFER PENSIONS THROUGH AN ISA STYLE PENSIONS REGIME
The Pep and Isa Managers’ Association today welcomed the Budget announcement to simplify pensions taxation and called on the Chancellor to do more to encourage greater pension provider choice.
PIMA has been in extensive discussions with the Inland Revenue and the Treasury on these proposals and has made detailed recommendations on a simplified pension structure increasing transparency, flexibility and potentially reducing administration costs.
With the Treasury confirming over 15 million ISAs have been opened since 1999 with over £130bn subscribed, ISAs are fast becoming the one of the most popular retirement savings vehicles.
Tony Vine-Lott, Director General of PIMA said: [i]“We are delighted the Chancellor is simplifying the pensions regime. The challenge now is to ensure that pensions are made more attractive to consumers. Millions are already using ISAs to save for retirement and PIMA will continue to promote the ISA investment structure for pensions in its discussions with the Treasury.”[/i]