TISA commentary on Autumn Budget
Reacting to the Budget, Carol Knight, Chief Executive of TISA, said:
“This is a budget of many bitter pills and only a few sweet treats. Reducing the Cash ISA limit is all stick and no carrot. People need to be encouraged to invest their hard-earned cash savings rather than feel forced by restricting their options. They need better support and information about products and the risks of investing set out in a balanced and understandable way. It will also add a layer of unnecessary complexity and confusion for savers trying to make the best financial decisions for their situation, unravelling years of hard work to simplify the ISA system.
But news that the expanded Help to Save scheme is here to stay will be a big boost to those on low incomes who are trying to build a financial buffer. The Government needs to shine a light on this tool for those who would benefit from it the most.”
Reacting to the salary sacrifice cap, Renny Biggins, Head of Policy – Products & Long-Term Savings at TISA, said:
“The Government is arm-wrestling itself over pensions. One hand recognises the retirement income crisis facing this country, while the other limits the very schemes used to incentivise pension contributions. This move will only further undermine pensions adequacy and retirement saving. We need to focus on encouraging, not penalising, saving into private pension pots.
Saving for retirement is a long-term commitment, and any changes to the pension framework need to be carefully considered. The Government risks injecting further uncertainty into the pension framework and eroding overall confidence in our pension system. What we need now is stability and consistency in the pension landscape.”
Lifetime ISA
Commenting on the news, Carol Knight, CEO of TISA said:
“This is a moment for sensible reform of the Lifetime ISA, not a rush to scrap it. LISAs have helped a generation of first-time buyers save for a deposit and, crucially, given many – particularly the self-employed – a simple, engaging way to build retirement savings.
As the government consults on a new ISA for homebuyers, it must protect the strengths of the LISA and give clarity and fair treatment to existing savers – not dismantle a product that is already delivering for those trying to save for both a first home and later life.”
IHT Pensions
Renny Biggins, Head of Policy – Products & Long-Term Savings at TISA, commented:
“This is some much-needed clarity on the changes to IHT and is welcomed. However, the new process for IHT could lead to a significant number of non-exempt pension pots being caught in limbo for up to 15 months through personal representative requests to withhold 50% of pension funds. This risks causing more stress at what is often a traumatic time, and for those classed as vulnerable who may be reliant on receiving the money to which they are entitled, it will add increasing pressure at the worst possible moment.”