Andy Briggs, chief executive of Standard Life, has called on the Labour party not to alter pension savings rules, expressing concern that policy uncertainty could harm individuals' retirement planning.
Briggs warned against a repeat of the speculation that preceded the last two Budgets under Rachel Reeves, which he stated led thousands of savers to make unnecessary withdrawals from their pension pots. This speculation, he explained, resulted in individuals moving money into a taxed environment when they might not have had sufficient savings in the first place, leading to a negative outcome for customers.
The current rules allow savers to withdraw 25 percent of their pension tax-free, up to a limit of £268,275, starting at age 55. With Chancellor John Healey reportedly seeking funds to balance the national budget, fears are growing that these pension savings could be targeted for potential changes.
"We worry about speculation on changes in pensions every year," Briggs stated. "The concern is that we’re asking people to save more for their retirement but if they think that the goalposts are going to move they’re less likely to do so."
He reiterated that the substantial speculation two years prior caused many customers across the industry to access their tax-free cash, a decision that proved detrimental when those funds were then subject to taxation without adequate overall savings.