ABI: Labour policy “would send the signal that it is not worth bothering to save into a pension”

Otto Thoresen, Director General, Association of British Insurers said:

“Labour’s constant changes to the pensions system while in office did much to undermine savings. Changing higher rate relief rules for the third time in four years as Labour proposes would send the signal to everyone that it is not worth them bothering to save into a pension because the tax rules will always be changing.

“The last Labour Government’s proposed tax relief tapering rules for people earning above £150,000 were scrapped by the incoming government because they were completely unworkable, and replaced with a simpler restriction that raises the same revenues. Attacking the incentive for higher earners to save into their pensions will further limit the insurance industry’s ability to invest in the economic growth and infrastructure which Labour wants to see.”

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