With the Summer Budget just a week away, equity release lender more 2 life is calling for a review of pension services and taxes.
The Budget announcement, due on 8 July, is already expected to deliver higher inheritance tax thresholds along with cuts to lifetime pension allowances and possible changes to salary sacrifice rules.
Given that a review of the Pension Wise service to include discussion about the role of property wealth in retirement planning as well as more information about retirement tax threats should also be included, more 2 life believes.
The lender’s own research shows that around two-fifths (41 per cent) of homeowners in the run-up to retirement already consider their property wealth as part of their retirement planning and believes including property in Pension Wise guidance is crucial to the success of pension freedoms.
Dave Harris, managing director at more 2 life, said:
“Pension Wise has a vital role to play in delivering success for pension freedoms but there is a huge missing piece of the guidance jigsaw.
“The £1 million inheritance tax threshold is widely expected in the Bonus Budget and coupled with changes which enable savers to leave pension funds free of tax means property wealth needs to be a major part of the retirement planning discussion.
“Pension Wise’s narrow focus on defined contribution funds misses the fact that many people have funds of between £30,000 and £40,000 but also have homes worth many times that.”
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