NAPF comments on 2015 budget

NAPF comments on 2015 budget

The National Association of Pension Funds (NAPF) has commented on the changes to pensions announced in the 2015 Budget.

Commenting on the Chancellor’s announcement to cut the Lifetime Allowance (LTA) to £1m per annum, and index-link it from 2018, Graham Vidler, Director of External Affairs, National Association of Pension Funds, said:

“The Chancellor’s commitment to index-link the Lifetime Allowance from 2018 is welcome. But the question remains, what will the LTA be in three years’ time?

“Let’s hope past performance is not an indication of future cuts. The LTA has been cut by £0.5m in the last three Budgets which if repeated would leave an LTA of £0.5m. This would buy an income of around £10,000 per year*.”

In reference to the Chancellor’s confirmation of a consultation on how to create a secondary market in annuities, Vidler said:

“This clearly fits with this Government’s agenda for pensions, but it’s unclear how savers will be protected. We welcome the full consultation as it will be essential to ensuring a fair and balanced market.

“It’s vital this does not distract us from or undermine the Freedom & Choice pension reforms due to begin in 19 working days. The Government must make sure this doesn’t divert focus or resource from Pension Wise, damage the broader annuity market or slow down the development of a much-needed market in retirement solutions for those looking to make use of Freedom and Choice from next month.”

Categories: News, UK Pensions
Tags: NAPF, Regulation

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