Two in five over-40s, or 40 per cent, consider pensions a vital part of their later-life finances. That rises to 48 per cent among people with at least £100,000 in investable assets.
Workplace pension provider Penfold is now calling on the Government to confirm that pension tax relief and tax-free cash will remain unchanged.
Chris Eastwood, the company’s chief executive and co-founder, warned that repeated speculation was already making it harder for people to plan their retirement.
“Pensions only work if people trust the rules they are saving under. Repeated speculation about tax relief or tax-free cash makes long-term planning harder, even if the eventual Budget leaves the rules unchanged.”
Tom Selby, director of public policy at AJ Bell, welcomed reports that John Healey will leave pension tax-free cash untouched in the Budget.
He said: “Reports over the weekend that Healey doesn’t plan to touch tax-free cash entitlements in this Budget are welcome, but he has an opportunity to go further by locking in long-term stability for pension savers.”
He called for a “Pension Tax Lock” guaranteeing that pension tax relief and tax-free cash entitlements would not be changed over the long term.