2. What shall we talk about today
Henry Tapper
Tax
Investment
Technology
3. Pension taxation isn’t working
Henry Tapper
The unhealthy symptoms
The Annual Allowance and its taper – The known known
The Money Purchase Annual Allowance – The known unknown
The Lifetime Allowance – the unknown unknowns
The net pay anomaly denies 1.7m savers their promised incentive
4. Pension taxation isn’t working
Henry Tapper
The terminal diagnosis
50% of the £40bn is spent on the 10% most wealthy earners
Meanwhile universal credit is starved of funds
Doctors are withdrawing services
And we still don’t have a sustainable way to fund long-term care
5. The three options open to Government
Henry Tapper
One - Stick with the current model
Tinker with AA/LTA/MPAA
+. Causes little disruption to pension system
- Kicks the can down the road
Two-Move to a flat rate system
+ Politically acceptable as it is fairer
- Would require heavy pay-coding to deal with employer contributions
Three- Move to an ISA style “TEE system”
+ Simpler and fairest to low earners
-Cashflow problems in transition (would need scheme pays)
Which option would you support
9. 2. CDC Works better for savers
CDC provides more
certain outcomes without
the freedom
Would your staff prefer pension freedoms
or a “wage in retirement”
10. 3. Investing environmentally, sustainably and
with good governance
Would you take a lower wage in retirement to
invest responsibly?
11. 3. Technology – room for improvement
Henry Tapper
Much of pensions operates without RTI
We need open finance and open finance needs open pensions
13. Can we use technology to
help people do simple things
like
Pulling pension pots together
Improving value for money
Deciding on the investment
pathway
Insuring our health
Turning pension pots into
retirement plans?
3. Applications
15. Question time?
Henry Tapper
❑ Is there a way to solve pension taxation issues?
❑ Can we teach savers to be investors?
❑ Do people really want this pension freedom?
❑ Investment pathways or CDC?
❑ Can pensions adopt RTI and be properly open?
❑ Will we get a pension dashboard and how will it help?
❑ Can technology help?
❑ How do we restore or even create confidence in pensions?
Henry Tapper
07785 377768
henry@agewage.com
Henryhtapper
Henrytapper.com
Agewage.com