Queen's Speech: PwC comments on Pensions

Published at 15:44 PM on 18 May 2016

Raj Mody, head of PwC’s pensions consulting business, commented:

“The details will be important, but the Pensions Bill measures appear sensible changes to help improve outcomes for savers and for people seeking to use the new pensions flexibilities.

“However, following the announcement of Lifetime ISAs (LISAs) earlier this year, the Government still has much to do to join the dots on its wider reform agenda. In particular, LISAs as currently described cannot be used for auto enrolment purposes and so risk further confusing the pensions and long-term savings market”.

PwC’s Pensions Forum event on 12th May 2016, which was attended by HR directors of several leading UK firms, found that a key concern was how LISAs might now interact with current pension provision in order to incentivise additional saving and build on the successes of auto enrolment.

Raj Mody commented:

“For larger employers looking to recruit and retain the best staff, how they reflect the emergence of LISAs in existing reward structures and budgets will be a key concern in the next year. For many smaller employers now embarking on the final wave of auto enrolment the expected emergence of LISAs offers additional complexity, as employees seek to balance competing savings needs.

“With a wider government review of auto enrolment planned in 2017, it will be essential that this includes the big picture question of how LISAs interact with auto enrolment and the wider pensions landscape.”

ENDS

 

For more information please contact Felix Ampofo. [email protected] /020 7213 3646

 

 


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