ICON IN THE MAKING

CITYAM.COM
MONDAY 14 SEPTEMBER 2015
NEWS
23
Zurich calls on government to apply
33 per cent flat rate of pension tax
CAITLÍN MORRISON
THE GOVERNMENT should introduce
a 33 per cent flat rate of pension tax
relief to convince more people to save
for retirement, insurance group
Zurich has claimed today.
The firm said a flat rate is a “longterm
solution that gives consumers
the certainty they need to save”.
Research conducted by YouGov for
Zurich has shown that 69 per cent of
over-55s said contributing to a
pension from untaxed income was
the most powerful incentive for them
to save for retirement.
“Investing into a pension from
untaxed income is a compelling
incentive to lock away savings for the
long-term,” said Gary Shaughnessy,
Zurich UK Life boss.
“Removing such a valuable tax
break, as the government is
considering, would drive people away
from retirement saving.”
He added: “Instead of scrapping
pension tax relief, the government
should reinforce its value by
introducing a 33 per cent flat rate
that would be a fairer, simpler and
more sustainable solution for people
of all incomes.”
He added that taxing pensions
upfront like ISAs would weaken the
culture of long-term retirement
saving.
Workers will need to start saving in a big way if they are going to enjoy retirement
Deloitte: Savers
must find extra
£10k each year
360˚ Accuracy
LAUREN FEDOR
BRITISH savers will have to find an
additional £10,000 each year from
now until they retire if the nation is
to close the growing so-called
“savings gap” between incomes and
retirement needs, according to a new
report from Deloitte.
The firm forecasts that the savings
gap could hit £350bn by 2050 –
almost £32bn more than estimated
just five years ago. And if the
population grows more quickly,
Deloitte said the gap could be even
bigger, topping £374bn by 2050.
The report argues that a
combination of strong population
growth, pressure on public spending,
the gradual closure of defined benefit
pension schemes and the rising cost
of healthcare are all contributing to
the growing gap between what
people earn and what they will need
to save in order to be able to retire.
Andrew Power, an investment
FUTURE HEADWINDS (£ BILLION)
Savings gap 2015
Further reduction of DB pensions
Increasing costs of long-term care
Population growth
Savings gap 2050
management partner at Deloitte,
said: “Despite welcome efforts by the
government to tackle the savings gap
through auto-enrolment and raising
the pensions age, challenges still
exist. People are living longer; many
would rather spend today rather than
save for tomorrow; and few know
how much they actually have tucked
away.”
“Separately, the government is no
longer as generous with tax
incentives,” he added. “If savers want
a particular standard of living at
retirement, then they will need a
greater awareness of what must be
saved today.”
Deloitte said that the investment
management industry needs to work
with government in order to motivate
people to save more. Mark Ward, head
of investment management, said:
“Savings products should be simple
and jargon-free and providers will
need to be transparent on what they
can achieve in terms of savings.”
250
23
Source: Deloitte analysis. 2015
36
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Licensing Act 2003
Notice of application for a Premises Licence
An application has been made to City of London Corporation for a new Premises
Licence for premises situate at and to be known as Obica, Unit 4, 60 Ludgate
Hill, London EC3. The application seeks permission to sell alcohol from 09.00 to
01.00 Mondays to Saturdays, 09.00 to 00.30 on Sundays and Late Night
Refreshment from 23.00 each night until 01.00 Mondays to Saturdays and from
23.00 to 00.30 on Sundays. The full application setting out all details of the
application can be viewed at the offices of the licensing authority at City of
London, Guildhall, PO Box 270, London EC2P 2EJ during normal office hours
(ring in advance to check). Further information may be available at
www.cityoflondon.gov.uk Persons who may be affected by the grant of the
application and responsible Authorities can make representations to the
Licensing Authority by close of business on 6th October 2015. All representations
must be made in writing. It is an offence under Section 158 of the Licensing Act
2003 for anyone to recklessly or knowingly make a false statement in connection
with a licensing application. The maximum fine on conviction is £5,000.
Clifton Davies Consultancy Limited
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