Chancellor Rishi Sunak sent a confusing message to pension savers when he froze the LTA in the Budget. If investment success could be rewarded with a tax bill it creates a bizarre disincentive, writes Kay Ingram
STATE PENSION payments have been underpaid for some women, with thousands having already claimed an increase to their income. In the 2021 Spring Budget, there was confirmation of an extra £3billion of funding.
However, the overall gender pension gap at the age of 65 is still substantial.
On average, women at this age own one third of the pension assets of a man, according to research by the Pensions Policy Institute for the July 2019 Understanding the Gender Pension Gap report.
Worryingly, the gap widens when women take time away from work, going part-time or choosing less-demanding roles, the research found.
And, with COVID-19 having meant the loss of jobs in retain and hospitality, sectors which have been seen to offer part-time roles for many women, there s fears there could be a widening of the gender pension gap as a result, if they remain unemployed.
There are a number of important factors to take into account when choosing how best to boost retirement savings with taxpayer handouts, says financial expert Kay Ingram.
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