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Pension poll position

The YouGov/Money Marketing monthly IFA survey shows almost a 50/50 split regarding the issue of whether the Government’s Budget decision to cut pension tax relief for people earning over £150,000 will significantly damage long-term savings.

Over 300 advisers were polled and a significant 27 per cent believe the decision could be more devastating to pensions than Gordon Brown’s infamous pension raid in 1997.

Although 70 per cent of advisers suggest less than 15 per cent of clients will be affected by the move, 59 per cent express concern that the £150,000 limit could reduce further in future.

Fifty-nine per cent of advisers either agree or strongly agree with the view that people affected will be put off saving into a pension entirely.

The Retirement Adviser head of retirement planning Nick Flynn says: “The £150,000 threshold is high but, because it refers to total income, suddenly it is a broader problem than originally thought. The changes add a layer of complexity to something that people generally understood. It could definitely have a serious long-term effect on pension saving.”

Turning to the RDR, 52 per cent of advisers believe the RDR should be delayed. Of those calling for a delay, 37 per cent say it should be delayed due to the economic crisis, 23 per cent due to the length of time to take qualifications, 17 per cent due to adviser charging and 7 per cent due to capital adequacy requirements.

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