Independent Financial Life Planners Bishop's Stortford: What would Labour do differently on pensions?

Friday, 17 October 2014

What would Labour do differently on pensions?

It’s the season of Party Politics and all this year’s conferences clearly have next year’s elections in their sights. With such a shake up to the pension scheme this year it is hard to envisage swings back or in a different direction should we have a change of government but this is part of an Independent financial Advisors' role to keep on top of changes in legislation and how they might affect your savings and investments.

Some of the key changes the Labour Party raised with respect to pensions in their conference include the idea that Labour would scrap the Government’s pot follows member scheme to stop the build-up of multiple small pension funds when people change jobs. As an alternative it prefers an aggregator model, where small pots are transferred to a central third-party scheme and then distributed. With respect to the Cap Charge the Department for Work and Pensions will be imposing a 0.75 per cent charge cap on all auto-enrolment schemes from next April. Labour says it would go further with a 0.5 per cent cap for schemes that wish to be eligible for transferring stranded pots.
Labour also said it would lift the £4,600 annual contribution limit and ban on transfers immediately if elected next year.

Enable of Bishop’s Stortford know that all three of the major parties will review tax relief, Labour is expected to reveal its proposals in its manifesto. Pensions minister Steve Webb, a Liberal Democrat, has proposed a new flat rate of less than 30 per cent while the Conservatives are considering further changes to the taxation of savings too.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

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