Certainty on pensions taxation top priority for advisers

Royal London, the UK’s largest life, pensions and investment mutual has found advisers are more interested in certainty over taxation than any of the other recent pension consultations.

When asked which area of government policy and regulation was of most interest to them and their clients, 61% of the 99 advisers on the Royal London research panel who responded, want certainty on pension taxation. Coming some way down the list was improving support with retirement choices at 12%, while providing certainty on long term care funding came third with 10%.

The recently closed consultation on small pension pots was not a priority for respondents, with only 4% choosing it as most important.

Jamie Jenkins, Director of Policy, Royal London, said: "The results of this poll are quite striking, but appear to confirm what we hear from so many advisers at the moment. The uncertainty of such differing positions on the taxation of pensions between the two main political parties is creating real problems for clients trying to plan their retirement.

"Pensions taxation has been an area of constant change, with allowances moving up and down, often with little warning. It would be good to set a clearer strategy – ideally one with cross-party support – as to how pensions should be taxed, allowing people to plan for later life with confidence."