NAPF reveals thoughts on pension policies

Tuesday, April 27th 2010

Some 15 million Britons are using pensions to save money for retirement and may be affected by plans set out by the three main political parties.

According to the National Association of Pension Funds (NAPF), there are various positive and negative aspects to each policy.

The Conservatives have promised to support workplace pensions - considered a helpful move by the body, as is a promise to improve the way tax is levied on these funds.

But the party's plans to allow early pensions access is not supported because this does not encourage new savers, it is claimed.

Labour's 2012 reforms to introduce mandatory employer contributions are seen as a wise move by the NAPF, but removing tax relief on payments from very high earners is predicted to harm lower earners.

And this negative aspect also applies to the Liberal Democrats' plans to do the same, although the body approves of initiatives to simplify the state pension.

Recently the leaders of all three parties have appeared in a series of televised debates.

The final debate will occur on Thursday (April 29th) before the general election on May 6th.