Cutting tax relief on pension contributions would be another attack on prudent savers

The financial advisory firm dubs it a further attack on those families who have been prudent enough to save and make plans for their retirement.

Niraj Vyas, financial planning director, says:

 “At a time when the public’s confidence in pensions – and financial services in general – is very low, we need to be extremely careful not to erode this further.

“The danger of removing tax relief for higher earners in order to fund tax cuts elsewhere, in part motivated by political pressure, could result in many people reassessing whether investing in pensions really represents good value. Continually penalising higher earners, which is proving an easy option of late, is likely to prove counterproductive over the medium to long term.

“With a fragile economy, unpredictable stock market and poor annuity rates, the government should avoid providing consumers with yet another reason to turn their back on pensions.”

Guardian Wealth Management says far too many people are still failing to make adequate provision for their retirement and consequently lack a sufficient income to live on in retirement.

Niraj adds:

“Too many Chancellors have seen fit to attack the pension industry in one way or another over the years and we feel it is high time this was brought to a stop. By constantly seeking to move the goalposts, they are in effect deterring individuals from saving in a pension.

“We need to tackle this issue and make it easier for lower income earners to save more instead of penalising those who already do and have had the foresight to plan properly for their retirement."