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Tories pledge NI rebate to fund private pension

A Conservative Government would allow younger workers to opt out of

National Insurance to fund pensions privately.

In the manifesto, Time for Common Sense, the Tories also promise to end

compulsory annuity purchase at 75.

The pension proposals would allow people under 30 to rebate their NI

contributions into a personal pension or stakeholder.

The manifesto also contains several policies of direct relevance to the

financial services industry, including a pledge to abolish tax on savings

and dividends for low and middle-earners.

The pledge to abolish compulsory annuity purchase promises to raise the

temperature of the annuity debate.

Retirement Income Reform campaigner Oonagh MacDonald has attacked the

Government&#39s resistance to annuity reform. She said: “The Treasury has

raised all sorts of phantom objections to our proposed reforms,

particularly in the area of taxation.”

Tory DSS spokeswoman Jacqui Lait says: “Our proposals mean that under-30s

could, if they want, contract out of National Insurance and put between

£500 and £1,500 into their own pension provision. It needs to be

an approved pension scheme and could be stakeholder if they think it is a

good deal. They might also choose to see an IFA.”

Torquil Clark pensions development manager Tom McPhail says: “The only

people who have not kept up with the argument on annuity reform are the

Labour Party.

“Reform is long overdue. The Conservative pension proposal is an

interesting proposition.

Pension funding is something where individual ownership and responsibility

can only result in greater awareness of the issues involved. It might also

be something in which IFAs will be involved.”


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Newcastle Building Society – Global Guaranteed Equity Bond (Issue 2) Tessa Only Isa

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