Pension measures announced in Alistair Darling's Pre-Budget Report yesterday have been branded 'disappointing' by the National Association of Pension Funds (NAPF).
In his speech, Darling confirmed that measures announced in this year's Budget, which would see tax relief on pensions reduced for those with incomes over £150,000 per year. He also revealed that to make this fairer, employer pension contributions will be included – although a cap will mean that anyone earning less than £130,000 will not be affected.
Commenting, Joanne Segars, NAPF chief executive said: "This is another pensions tax grab designed to shore up the UK's ailing public finances. A further 70,000 people will be worse off as a result of these changes which do nothing to support pensions saving. It is a further erosion of the long-established tax treatment of pensions in this country."
Other pension measures that were revealed included a cap on employer contributions into public sector pensions, as Darling announced: "Public pensions need to be broadly in line with those offered in the private sector."
Meanwhile, Darling also revealed that Personal Accounts, due to be launched in 2012, which should help more people to contribute into their workplace pension, will actually be phased in. Ms Segars comments:
"We welcome the commitment to press ahead with the 2012 pension reforms. However, we are disappointed that their full implementation will be delayed."
Commenting on the overall impact of the Pre-Budget Report on pensions, she added: "The Pre-Budget Report is a mixed bag for pensions and it is disappointing that the Government has not done more to help people save for retirement."
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