Green Paper on Pensions Reform - ACT Response

The ACT welcomes the Government’s attempt to simplify the taxation of pensions and its proposals to replace the numerous complex existing regimes by a single unified approach. We fully support the declared aim to encourage individuals to save more for their retirement by giving them clearer simpler choices and the intention to make it easier to set up and run good pension schemes.

We confine our remarks to the following specific issues:

Simplifying the taxation of pensions

• The lifetime cap
• The annual contribution limit/limit of annual relevant earnings
• Number of people affected by the lifetime limit
• Adequacy of the £1.4m limit

Simplicity, security and choice

• Amending the priority order of creditors
• Central clearing house
• Insurance arrangements