ABI response to Steve Webb speech

“For a long-term sustainable pensions system that provides people with an income fit for their retirement needs it is essential that people are encouraged to save more for longer. Steve Webb is right to say that increasing pension contributions is a priority for the next Parliament. However, that policy priority needs to go hand in hand with a long term settlement on the taxation of pensions savings. Yesterday's proposed reduction in the Lifetime Allowance, to £1million, is a disappointing example of short term tinkering, which as the Lifetime Allowance is not indexed would affect many ordinary pension savers over time."

“The best way to achieve meaningful pension reform is through cross party consensus behind a wider strategy that can deliver stability in the pensions system over at least two Parliaments – only then can we build lasting change in saving rates.”