The so-called pension ‘freedoms’ were introduced last year by former UK Chancellor George Osborne, with fears expressed that pensioners would be tempted to blow all their savings on round-the-world cruises and new cars, falling back on the state for retirement income.
Speaking at a conference organised by the Jersey Pensions Association earlier this month, Deputy Comptroller of Taxes Paul Eastwood described the matter as ‘the elephant in the room’ and said the department had been ‘lobbied’ by members of the public wanting the UK changes to be extended to Island residents.
‘Our position is that we are still watching the impact of the decisions that people are making at retirement, and whether they are saving more,’ said Mr Eastwood, adding that in Australia – where pension freedoms had been available for some years – the government was moving away from the idea.’
He said that in effect Island residents had already had a similar facility for some time, in the form of drawdown contracts, with private pension savers eligible to cash in up to 30% of their lump sum tax-free after the age of 50.
Read the full story in, The Business, in Wednesday’s JEP.
Away on business? Stay in touch with JEP Extra
