the PPIs research on UK Pensions Tax Relief released today

　　David Hare, President of the Institute and Faculty of Actuaries (IFoA) comments on the PPIs research on UK Pensions Tax Relief released today.
 

　　“In addressing the savings gap in pensions, policy makers have a variety of options available to them and tax relief is just one option. The existing system is extremely complex and confusing for many people. The PPI’s research focuses on the tax treatment of pensions and raises some interesting questions.  However, tax is only one part of the pension saving decision - the ability to save, accessibility, clear communication and understanding contribution based pension products are likely to be equally important.

　　“The report highlights evidence to support the view that higher rate tax payers do best out of the present system. That may not be surprising, given the higher tax rates that would otherwise be paid on the money involved.  However, the PPI’s research presents alternatives that would channel the current cost of tax relief more towards those on lower incomes, to the extent that, in addition to the tax relief already provided on their contributions, the government will, in effect, also contribute on their behalf.

　　“While this may be one possibly policy option, it is also important to consider how employers can be incentivised to provide pension saving.  Most pension saving is already made via employer sponsored provision and this will increase under autoenrolment. It would be interesting to examine how removing complexity and using tax incentives to reduce costs could encourage employers to wholeheartedly embrace pension provision.  A simple regime that is easily understood could have many benefits for both employers and employees.

　　“The pension system in the UK is presently undergoing a great deal of change. It is right to question conventions and the status quo.   We see this report as worthwhile first step and look forward to working further with the PPI and other interested parties in bringing our members’ expertise to bear in assessing the robustness of the conclusions being drawn and find answers to some of the questions that it raises. “

　　The IFoA is unique.  We are a professional body with members all over the world who work across many sectors including insurance, pensions, health & care, resources & the environment and risk. The IFoA is independent and has no lobbying position; we seek to inform the debate.
 

　　For further information or comment please contact the media office: Karen Wagg, 077 255 58 551 / 020 7632 1452

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　　About the Institute and Faculty of Actuaries

　　1.    Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues

　　2.    Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.

　　3.    Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

　　4.    The IFoA is available to provide independent expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.
 

　　名言警句：知识是引导人生光明与真实的灯烛，考试是检验才华的标尺。