Issues surrounding the Lifetime ISA, auto-enrolment and pension tax relief remain the top priorities that the industry would like the government to focus on, for the upcoming Autumn Statement.

With just two days to go before Chancellor Philip Hammond delivers his first Autumn Statement, Pensions Age, continues to hear from industry professionals on their expectations. The government has already said it is going to ban pensions cold calling but is remaining quiet on any other plans.

Former Pensions Minister and Royal London director of policy Steve Webb has asked for a period of stability for pension tax relief, something the Conservative Party did promise in their election campaign beyond those already announced.

“If they simply implemented that pledge would be great news for savers and the industry alike. However, if they are strapped for cash, the chance of further ‘salami slicing’ of tax relief looks likely, and the annual allowance is probably most at risk of further cuts,” he said.

However, PwC pensions partner Raj Mody believes the current tax arrangement are “clearly not intuitive to understand”. Therefore he thinks the Annual Allowance taper for people earning between £150k and £210k a year would benefit from simplification.

“It is fiendishly complicated, for the individuals affected and for companies trying to manage their pension arrangements, and affects more people than just those in that earnings range. There is a risk that a hugely complex system may disengage a segment of the population, including company senior management, from retirement saving.

“The Chancellor could look to simplify the Annual Allowance taper considerably. Alongside this could come a change to the way tax relief works for pension savings, for people of all earnings brackets. This could be presented more cleanly as a top-up incentive, LISA-style. It would be another step towards a reformed pensions tax system, and convergence of pensions and LISAs,” he stated.

The expectations on the Autumn Statement are not all about tax, however, as Gowling WLG pensions lawyer Ian Chapman thinks the Chancellor should focus on encouraging more people to save into a pension.

“This should be targeted where it is needed the most – getting low to moderate earners to save more into their pensions. This could include providing government credits to match contributions for low earners, increasing participation and contribution rates for automatic enrolment schemes and a push on financial literacy in schools, the workplace and for the general public.

“The government should also clarify the role of Lifetime ISAs in relation to pension saving and managing intergenerational fairness. Any push for greater pension savings does, however, need to recognise the substantial financial burdens falling on UK businesses, including the recent introduction of the National Living Wage.”

Making pensions more inclusive is a thought shared by former Shadow Pensions Minister and Aberdeen Asset Management head of long term savings Gregg McClymont. He wants to remove the lower income threshold for auto-enrolment to offer everyone a pension. He also suggests the government count multiple low paid jobs as one income for auto-enrolment purposes.

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