The Association of British Insurers has held talks with Treasury officials over the future of pension tax incentives in the UK.
The ABI hosted a meeting with representatives from insurance companies, the Pensions Policy Institute, Age UK, the Money Advice Service and the Treasury this morning to discuss how to encourage saving in the UK.
This included talks around the use of taxpayer money to encourage pension saving.
Earlier this year, the Treasury said there was a “legitimate public debate to be had” about pension tax incentives after a PPI report found “little evidence” the £35bn a year spent on tax relief actually encourages pension saving among low and medium earners.
Following the meeting, ABI director general Otto Thoreson set out five key principles for future pension reforms following a meeting with industry representatives and the Treasury.
The trade body says any future reforms must:
• Be fairer, simpler and easier for people to understand;
• Encourage people, particularly those on low to middle incomes to save more;
• Be straightforward to implement – including for employers and the industry;
• Command cross-party support;
• Demonstrate good value for money to the Exchequer by ensuring any future reforms are revenue neutral or lower cost than the current system.