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TSC chair pushes for major Govt review of long-term savings market

TSC chair Andrew Tyrie says there needs to be a “more coherent” thinking on long-term savings.

Treasury select committee chair Andrew Tyrie wants a major Government-commissioned review into the long-term savings market.

In an interview with Money Marketing, Tyrie argues for a review to examine annuities, pensions tax relief and Isas which would then lead to a “more coherent” savings policy.

Tyrie says: “It is a big job but there has to be a more coherent approach given to the long-run savings culture.

“Doing that work in a climate of economic instability would have been difficult. Fundamental reform of savings is better considered in a sustained upturn.”

Tisa is publishing a major review of the savings and investment industry later this year which will include policy ideas for the party manifestos.

Centre for Policy Studies research fellow Michael Johnson is also publishing a paper next week calling for all tax relief to be replaced with a Treasury pledge to match savings pound for pound. 

There have been several disparate Government reviews of the long-term savings market already, including economist Andrew Dilnot’s cross-party review into the future of long-term care, which has led to the Care Bill and the major upcoming reform of social care funding.

The Treasury has called for a debate on the future of pensions tax relief and has also sought views on whether to cap Isa allowances at £100,000 to target so-called “Isa millionaires”.

Conservative MP Harriett Baldwin, who often speaks for the party on pensions, says: “I am interested in any suggestion that could be fed to the Treasury to encourage people to save more.”

Worldwide Financial Planning IFA Nick McBreen says: “A review is the next logical step. Long-term savings is a huge problem and we need smart ideas with incentives to get people interested and involved.”

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  1. Funny sort of encouragement when you start out by suggesting limitations.

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