Share
Print
Print Share

Green Party manifesto comment: Some pension policies amount to robbing Peter to pay Paul

19/11/2019

If you are covering the Green Party manifesto published today, please see the following commentary from Quilter’s head of retirement policy, Jon Greer:

Jon Greer"Pensions are often a very contentious part of any election campaign and can massively influence those who are most likely to vote in force. The Green Party’s manifesto pledges regarding pensions are unsurprising in some respects such as their pledge to require public bodies to divest their pension funds away from fossil fuel related investments.

"However, the Green Party has also pledged to give pensioners £10 more per week under their overhauled Universal Basic Income system, as opposed to the current state pension system, with the increase linked to inflation.

"A fairer policy would be to base pensioners income increases on the average earnings increase in the UK. This would mean that pensioner income would be linked to the prosperity of the rest of society rather than simply inflation.

"The Party’s focus on fixing the cracks in the gig economy is laudable as we need to make sure that any policies make clear exactly who is an employee and who is genuinely self-employed. The consequences of failing to classify gig-economy workers clearly means that many do not know their rights, for example whether they are eligible to be auto-enrolled into pensions.

"Since people are now put in control of their own retirement savings more than ever before, saving into a retirement pot should continue to be incentivised through tax relief. The pledge to reduce the current rates of tax relief to the basic rate and limit the amount of tax free cash you can access from your pension could end up being detrimental to the savings habits of millions of people, and will be unpalatable to many voters.

"As ever, there is an element of robbing Peter to pay Paul in these pension policies. While the Greens state they would help pensioners by ending the double taxation of pension funds, effectively reversing Gordon Brown’s tax raid on pension funds, they controversially pledge to cap tax-free cash from pension funds at £40,000. This would mean people with funds in excess of £160,000 would not have any tax free cash allowance in their fund"

For more information contact

Tim Skelton-Smith02380 916 99807824 145 076tim.skelton-smith@quilter.com
Alex Berry023 8072 626007741 151931alex.berry@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £110.4 billion in customer investments (as at 31 December 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.

Disclaimer

This announcement may contain certain forward-looking statements with respect to certain Quilter plc’s plans and its current goals and expectations relating to its future financial condition, performance and results. 

By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc’s control including amongst other things, international and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc’s forward looking statements.

Quilter plc undertakes no obligation to update the forward-looking statements contained in this announcement or any other forward-looking statements it may make.

Nothing in this announcement should be construed as a profit forecast.