Insurance group and pensions provider Legal and General have slammed the government for pension change made during the budget. The chief executive of the insurance company made it clear that cutting tax relief on pension contributions made by higher rate taxpayers could lead to less savings and make the system more complex.
Tim Breedon reportedly commented: "To make savings attractive to people you want simplicity not complexity. And you want stability, not change." L&G, the third largest insurance company in the UK, reported life and pension sales up 3 per cent on last year figures.
He reportedly continued: "We have greater confidence that the worst of the financial crisis is behind us. Credit spreads, generally, have narrowed considerably. And with this, the market expectation of future default rates has fallen. There are very large changes in the perception of risk that occurred in the last few weeks in the market. Credit spreads have narrowed to a level which we think is more consistent with the likely economic outlook. It’s not a very positive outlook but it's nowhere near as negative as the deep financial woes that were being priced in."
Insurance group attacks budget pensions changes
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Insurance group attacks budget pensions changes
Wed, 13 May 2009
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