Call for government to double exemption limit on employer pension advice
26 April 2018
According to the workplace pensions report published by the CBI in partnership with Aegon, 56% of employers surveyed believe that the government should extend the tax exemption for employer-arranged pension advice to more than £500.
Aegon is calling for the limit on income tax and national insurance (NI) relief on employer-arranged pension advice to be extended from £500 to £1,000.
This follows the findings of the Engaging with saving, the workplace pensions report the CBI published in partnership with Aegon in March. The report revealed that more than half of employers believed that the government should extend the tax exemption for employer-provided pensions advice to more than £500.
The employer-arranged pension advice exemption is the amount an employer can spend on pension advice per employee in a year, without the individual incurring tax as ‘benefit in kind’. It can be used to provide workplace advice on pensions, and on general financial and tax issues relating to pensions, to help employees make informed decisions on saving for retirement.
Reportedly the cost of advice varies depending on the situation but it can be anything between £75 and £350 an hour, with the average cost of advice in the UK being around £150 an hour.
Read the full press release from Aegon.