Earlier this week the Pensions Policy Institute (PPI) published ‘Tax relief for pension saving in the UK’, its report into pensions tax relief and in particular the effectiveness of tax breaks as an incentive to save. Even as someone who has been working on pensions issues for several years, I was genuinely shocked by some of the PPI’s findings.
The report exposes a system of tax relief that heavily favours the highest earners. But in analysing the potential impact of several reform options, it also offers an alternative approach that would be much less regressive and a better savings incentive – and cost little more, or even less, than the current system.
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Image: Images of Money