FE fundinfo – the global leader in investment fund data and technology – issued its response to the Chancellor’s 2023 Spring Budget focusing on the implications it will have on retirees following the changes to the pensions tax allowance as well as the focus on the inclusion of nuclear power in the UK’s green taxonomy.
Following today’s (15 March) announcements, FE fundinfo has said that it believes the lifting and removal of the limits for pension tax relief is positive step forward and will play an important role for advisers and savers alike.
Toyosi Lewis, Retirement Investment Specialist, FE Investments said:
“The lifting and removal of various limits on pension tax relief in today’s budget announced by the Chancellor is a welcome idea. Whilst it appears to be aimed at those thinking about an early retirement to reconsider their plans, it also incentivises those who are still in work to build up bigger pensions.
“As Defined Contribution (DC) pensions become the mainstay of people’s retirement wealth over time and with the investment risk sitting with them, the importance of the above cannot be overemphasised. Getting it wrong could be catastrophic for clients, so independent advice coupled with the right tools and retirement products – such as those provided by FE Investments – ensures consumers are better able to manage their retirement risks.”
FE fundinfo added that with the Chancellor’s focus on the inclusion of nuclear power in the UK’s green taxonomy, this would make it easier for fund groups to apply common rules wherever they operate.
Mikkel Bates, Regulation Manager, FE fundinfo, said:
“Given the recent push by the Government to achieve net zero – as re-stated at COP26 – we would expect to see a greater emphasis on sustainability in their Spring Budget, but this wasn’t the case.
“However, while some might object to nuclear power being included in the UK’s proposed green taxonomy, it does at least signal that it will be reasonably consistent with the EU’s taxonomy. As first mover, the EU taxonomy set the baseline and we have called before for consistency between taxonomies in different jurisdictions, to avoid confusion for fund groups operating across national borders.”