What incentives do people under 30 have left to build a pension?
Is it a better deal than schemes like putting 80% of your extra money on the bank and 20% in riskier investments?
Is it a better deal than schemes like putting 80% of your extra money on the bank and 20% in riskier investments?
If you are a higher rate tax payer this is a huge benefit - you can take up £40k before it becomes taxable, tax for high earners can be 40% - but it doesn't really help people on lower incomes who are at most risk of not having any savings.
THe idea is to reduce the burden of the state pension. It would be counter productive to do anything counter to that.
However - the left keep wanting to take away higher tax relief on pensions. Which sounds great unless you are a nuclear family where 2 people will rely on one person's pension (like my wife will - we also have other compounding circumstances). If they cut this relief I'll leave the country or go self-employed and play the system, as it will push my marginal tax rate to a stupid rate.
There is a state pension as well, and the retirement age is gradually being increased, but as I understand it that's always for people currently below a certain age - i.e. you won't get to 66 and then suddenly have your retirement age increased to 67.
Companies are multinational today. So can you.