Financial advisers’ three big Budget requests
- Advisers’ top priorities are economic growth, relaxation of pension allowances and stability pre-Brexit
- Broad support among advisers for:
- No radical change to pensions tax relief for now
- Urgent consultation on social care
- Intergenerational fairness across Government policies
New research* from Aegon reveals three big requests from the nation’s financial advisers ahead of the Chancellor’s Autumn Budget.
Advisers were asked to specify three beneficial measures relating to pensions, savings and investment they would like the Chancellor to focus on in the Autumn Budget. The top choices were stimulating economic growth (67%), relaxing the lifetime and / or annual allowances for pensions (55%) and limiting change to create stability pre-Brexit (51%).
Advisers were then asked to what extent they agreed or disagreed with a number of policy suggestions Aegon is calling for in its Budget wishlist.
The policy which was most supported was that there should be no radical changes to the current pensions tax relief approach at least until Brexit is concluded and auto-enrolment fully rolled out, to avoid creating savings uncertainty. 44% of advisers strongly agreed with this, with a further 34% agreeing. Only 12% disagreed.
77% of advisers agreed that the Government needs to consult urgently on social care funding while only 2% disagreed.
When asked if social care funding should be looked at alongside pension policy, 59% agreed it should, and just 12% disagreed.
There was also strong support for Aegon’s call that intergenerational fairness should be tested across all new Government policies. 60% agreed while only 6% disagreed.
Aegon also tested the extent to which advisers agree the Government should introduce measures which make pension saving the default for the self-employed and gig economy workers, along the lines of auto-enrolment. The majority (59%) are in favour although almost a quarter (22%) disagreed.
The suggestion which divided opinion most was that reducing stamp duty would encourage people to downsize, boosting funds to pay for retirement while also freeing up family homes with benefits across the housing market for all generations. While 36% agreed with this, 39% were against.
Steven Cameron, Pensions Director at Aegon said:
“Against the backdrop of a critical stage in Brexit negotiations, the Chancellor has a difficult task ahead in deciding what to include, and what to avoid in his November Budget. From a pensions, savings and investment perspective, advisers are calling for limited change to offer as much stability as possible. They are strongly opposed to any radical reform of pension tax relief at least until Brexit is concluded and auto enrolment fully rolled out, but there is a strong demand for relaxations in the lifetime and annual allowances.
“Advisers are also impatient to see what the Government will propose for social care funding with a clear majority agreeing this should be looked at alongside pension policy. There’s also significant support for Government policies including social care funding to advance intergenerational fairness.”
*Research conducted via Aegon’s financial adviser research panel. 85 advisers responded to the survey in October 2017.
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Notes to Editors
- In the UK, Aegon offers retirement, workplace savings and protection solutions to around two million customers and employs approximately 3,450 staff. More information: www.aegon.co.uk
- As an international life insurance, pensions and asset management company based in The Hague, Aegon has businesses in over twenty five markets in the Americas, Europe and Asia. Aegon companies employ over 28,000 people and have millions of customers across the globe. Further information: www.aegon.com
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