Who benefits?
The news that the Chancellor intends to increase the annual and total pension investment allowances is bad news.
First I don’t see it keeping many people working if they do not want to, many people especially with housing wealth found during Covid that they just did not want to work as hard for as long.
Secondly it once again pours money into the wallets of the middle classes, who are already wealthy.
The pension system has been hugely biased in favour of higher tax payers for decades. Unreformed this will just make it worse.
People who pay 20% tax only save 20% on the few pension savings they can make, wealthy earners save 40% on the much larger savings they can make. An average figure for all of say, 32%, would incentivise the less well off to save more.
Because the real scandal is not the total people can save, it is how little the poor do.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media