Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow's Evenlode Income fund was recently removed from the Investment Association's UK Equity Income sector.

Play GAM charity football tournament: the live draw

GAM charity football tournament: the live draw

Former Chelsea and England footballer Graeme Le Saux visits Citywire to make the draw for the tournament, where all proceeds going to Wheels for Wellbeing.

Play FIFA, Panama Papers…and what everyone’s getting wrong

FIFA, Panama Papers…and what everyone’s getting wrong

VIDEO: Investigative reporter Jeffrey Robinson reveals how major corruption scandals are being mishandled and what to expect next.

Your Business: Cover Star Club

Profile: JPM Wealth MD on breaking the glass ceiling

Profile: JPM Wealth MD on breaking the glass ceiling

During her tenure at JP Morgan, the private bank has changed the way it segments clients in a bid to improve focus

Wealth Manager on Twitter