Property News · March 9, 2016

Pensions system favours the richest | Letters


Polly Toynbee’s theory (Opinion, 8 March) that the chancellor caved in on reform of pension tax relief to a selfish pension industry suffers from one small problem – it isn’t borne out by the facts. It is certainly true that the “pension Isa” option initially favoured by the chancellor and by the right-leaning Centre for Policy Studies would have caused major problems for pension savers. It would have abolished their upfront tax relief but left them dependent on future politicians not to tax them again in retirement.But there was another redistributive option on the table – a generous flat rate of tax relief giving extra help to millions of savers on modest incomes at the expense of higher earners. Royal London publicly supported such a reform, and is actually a 150-year-old member-owned mutual – a form of ownership of which I would have thought Polly Toynbee would approve. Moreover, any profits that the company makes from providing pensions are either invested in the business or handed back to members via the ProfitShare scheme. Continue reading…

Source : theguardian.com
Read more…Pensions system favours the richest | Letters

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