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Advisers support plan to link Isas and pensions

Advisers have backed Government plans to link Isas and pensions, although concerns remain about Nest’s ability to cope with any potential reforms.

Last week, Money Marketing revealed Treasury officials will open discussions with the industry on the practicalities of linking Isas and pensions in the coming weeks.

A Treasury email, seen by Money Marketing, reveals two workshop sessions will be held in the next two weeks.

The email says: “The sessions are intended to gain views and insight into the current market developments in better linking liquid and pension savings, and a wider consideration of the future role of employers in promoting employee saving through the workplace.

“We are keen to have an open and broad discussion in these areas, to consider what role Government may usefully have in supporting market and employer innovation in promoting savings by employees and wider links to financial advice and protection products.”

The Retirement Adviser director Nick Flynn says: “Any changes to the system that encourage more saving are to be welcomed. However, there is a question over whether any new regime would be able to link with Nest.

“Nest has got enough to chew on at the moment without having to think about how Isas could fit into the picture.”
Axa Wealth head of pensions Mike Morrison says the policy could sit separately from Nest.

He says: “It is likely this more flexible savings regime would be offered as an alternative to Nest, although that could have implications for its membership figures.

“One of the key challenges for the Treasury will be designing a suitable default lifestyling mechanism that diverts more into pension units as savers get older.”

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