A recent survey undertaken by the Association of Investment Trust Companies has revealed that consumers do prefer the tax benefits of pensions over Individual Savings Accounts. The AITC asked a number of consumers what the most important issue was for the Government to address to promote savings. 32% of respondents said that bringing back some of the pension tax credits was a better idea than retaining the current ISA limits. 13% of respondents wanted means tested benefits abolished (only 13%!) and 27% wanted financial education increased.
Our View
As we have been saying all along, the Government has set pensions and ISAs and all other tax-efficient vehicles up to fail.
If the Government actually wanted us to save more, don’t you think they would do something about it? The real question is – what is the hidden agenda here?