Speed Read: It is recognised that tax incentives are needed to encourage individuals to save for their future through a pension arrangement, particularly given how inflexible pensions are compared to other forms of saving. This article looks at the tax incentives currently available and what changes might be made in the next Parliament. The Labour and Conservative parties state in their manifestos that they would encourage participation in pensions but do not elaborate. The Liberal Democrats state that they would give tax relief on pensions at the basic rate only — this could have a significantly adverse impact on pension participation.
