Report calls for Isa and pension fluidity

The Centre for Policy studies has proposed an annual savings limit of £45,000 across Isas and pensions with the aim of simplifying and encouraging savings.

In a report entitled Simplification is the Key: Stimulating and Unlocking Long-term Savings, pension and savings analyst Michael Johnson recommends introducing fluidity between Isas and pensions. He says this could be achieved through a combination of some pre-retirement access to pension savings and, at retirement, retrospective tax relief on Isa assets being re-nominated as pension savings. He proposes tax relief should be at the saver’s marginal tax rate, thereby offering high earners some 50% tax relief. Another proposal is to allow partners to fund each other’s pension pots wh...