Press release: Government helps you save for retirement – as long as you are nowhere near retirement age
The Association of Taxation Technicians (ATT) is disappointed with the Government for excluding people in their 40s from its flagship plan to incentivise saving for retirement.
Chancellor George Osborne announced in today’s Budget a new ‘lifetime’ ISA for the under-40 year-olds, with the Government putting in £1 for every £4 saved, up to the age of 50 years-old.
Ralph Pettengell, ATT Deputy President said:
“Anything that encourages long term savings is positive. It will let young people save for a first home and for their retirement, without having to choose one over the other. We look forward to studying the plans in more detail.
“We believe that it would make sense to widen the eligibility of the lifetime ISA to people over 40 years-old considering they have endured many of the same problems that have led to low pension savings, chiefly the rising cost of living in the UK, as people in their late 30s. To not extend it to the over 40s is strange and unfair.
“The Government seems to be saying they are only going to help young people with saving for pensions and washing its hands of the rest of the population."
The Government will arrange discussions with industry to finalise the constraints put on the scheme and to ensure it works in the simplest way for both savers and providers of savings products, with the final details set out later this year.