Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Pension reforms could create £24bn black hole

Pension reforms could create £24bn black hole

Chancellor George Osborne (pictured) may have to amend the sweeping pension reforms announced in this year's Budget, as it emerges they could lead to a mulit-billion pound void in public finances.

The Daily Telegraph reported that Treasury officials have been warned that the government could miss out on up to £24 billion in tax take from pensions as a result of the changes, which include retirees no longer having to buy an annuity. As a result, pensions experts have been called in to the Treasury as part of a consultation into how to implement the reforms.

According to the Daily Telegraph, sources have said the concern is that people will now pay large sums of money into their pensions as they approach retirement and receive tax relief top-ups. They can also find ways of withdrawing their pension savings without paying tax.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter