TISA praises Michael Johnson’s new paper from Centre for Policy Studies
Simplification is the key – stimulating and unlocking long-term saving
“This paper takes a comprehensive and well-argued look at the reform options for retirement saving,” says Tony Vine-Lott, Director General of TISA – Tax Incentivised Savings Association. “The emphasis is on a holistic, ‘lifetime’ approach to saving, something that TISA has been advocating for several years.”
The paper points up the flaws in the current pension saving architecture, highlighting in particular its increasing complexity, one of the primary reasons for consumers turning away from pensions. Where they have a choice savers, especially more modest earners, favour the simplicity of ISAs, a fact reinforced by the ‘persistency’ of ISA savings. A staggering £35.7billion of new saving went into ISAs in 2007/8, compared with employee pension contributions of £27.9billion for the same period.
“The lessons are clear,” says Malcolm Small, TISA Director of Portfolio and Retirement Planning. “It is in the interests of government, consumers and the financial services industry to provide simple, flexible and attractive long term savings structures. Reform, however, must include reform of the current state retirement benefit structure, an end to means testing and the provision of the clearest possible incentives to save.”
TISA urges government to give the CPS paper serious consideration. “It brings a depth of thought to the debate and great practical perspective,” continues Tony Vine-Lott. “The prospect of both reform and simplification would present the new government with the perfect opportunity to demonstrate effective leadership. We hope it is a nettle they grasp.”
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For further information, please contact:Tony Vine-Lott, Director General, TISA, Mobile: 07790 006 108, tony.vine-lott@tisa.uk.com
Malcolm Small, Director of Portfolio and Retirement Planning, TISA, Mobile: 07989 500 771, malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available, at the same time encouraging more people to save for their long term financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace, its membership comprising over 120 firms involved in all aspects relating to the supply and distribution of financial products and services.
TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles.