Briggs urged Chancellor Rachel Reeves to rule out a tax raid on retirement pots, arguing that constant changes to the pension tax system discourage saving. According to Daily Mail - Money, Briggs described how speculation about reducing tax-free withdrawals prompted many customers to take cash early, leaving them financially worse off. He stated that savers need certainty to plan properly for later life.
The government recently capped salary sacrifice schemes at £2,000 per employee annually starting in April 2029, with Reeves arguing the scheme does not benefit minimum wage workers. According to City AM, Briggs described not supporting these changes because they may lead to reduced savings. The impact of these changes on the workplace pension market has not yet fully materialized, with Briggs noting the market still shows strength.
Briggs highlighted a retirement savings crisis, stating that only one in seven people are saving enough for a good standard of living in retirement. Standard Life is positioning itself as a major player, having recently agreed to buy the UK arm of Dutch insurer Aegon for £2 billion to create Britain's largest pensions group. The company is also a key signatory to the Mansion House Accord, committing to invest 10% of default funds in private markets by 2030.
Pension savers can currently withdraw up to 25% of their savings tax-free from age 55, up to £268,275. Despite speculation about reducing this threshold, Reeves decided against such a tax raid in her first Budget. Meanwhile, the Pensions Schemes Bill includes a controversial 'reserve power' allowing government to compel pension schemes to invest in specific assets. According to City AM, Briggs described not supporting mandation, believing customers should have investment choice. Conservative peer Baroness Stedman-Scott warned this power gives government sweeping authority over pension investments.