Pensions

Pensions are not being used to fund the NHS, So what's changed?

Quite frankly; nothing - this is great news! This means that the rumours around tax relief being cut have not come into fruition at all this year.

It was also positive to see that the government is taking steps to support the launch of Pensions Dashboard as extra funding appears to have been set aside for the 2019/20 tax year. The Budget documents confirm that individuals will be able to see their pension pots, including their State Pension, in the one place and will be consulting later this year on the detailed design.

This winter, DWP will also publish a paper on the self employed in which the government will set out their approach to support the growing number of self-employed.

There was a growing concern that pensions would be targeted to fund the NHS deal but thankfully this is not the case which means that saving via a pension remains attractive as tax relief is granted on a person’s highest marginal rate of tax.

Equally, there has been no change to the Annual Allowance figures meaning the £40,000 limit still applies.

It’s also very positive that the government now appear to be getting behind the pensions dashboard and including state pensions – let’s just hope this is sooner rather than later.