SSIA-type scheme, single tax relief for all pensions

THE taxation committee has recommended that a single tax relief should be introduced for all pension schemes and has proposed a new retirement savings system similar to the SSIA scheme.

They say this is necessary to boost the level of private pensions, currently held by half of the working population, and because the current tax relief is distorted in favour of the better-off. They currently enjoy tax relief of 41% on their pensions against 20% for those on middle to lower incomes.

That was a serious anomaly, as they were much more likely to be saving actively through their own pension plans for their retirement years.