Ian Hammond, Managing Director of Rowanmoor Group plc, comments on this afternoon’s Budget and its implications for pensions:
“The first true blue Budget in almost 20 years has been delivered just months after such a radical transformation of the retirement landscape. As anticipated, the annual allowance is to be slashed from £40,000 to £10,000 for those earning over £150,000, adding complexity to reporting requirements and confusion for clients and their advisers in terms of tax year earnings and pension input periods.
“This could however favour defined benefit schemes such as a DB SSAS, allowing the employers of those directors affected by a reduction in the annual allowance to make larger contributions.
“We are facing yet more reform, with news of a consultation into pensions tax relief and incentivising pensions saving long term.
“There is good news for transfers; we welcome the Government’s consultation into making the process for transferring pensions quicker and smoother, a benefit for clients and providers alike.”