The Chancellor said he will abolish the Autumn Statement in favour of a Budget in the Autumn and a smaller-scale Spring Statement. Hammond also set out a rather gloomy set of economic forecasts on the back of Brexit, saying the vote to leave the EU will dent economic growth and require more government borrowing.

Hammond’s first and last Autumn Statement was, however, light on pension reform. There was no hammer blow — or Hammond blow — to pensions. A cut to the Money Purchase Annual Allowance (MPAA) from £10,000 to £4,000 and a pledge to retain the pension triple-lock through this Parliament were the headline announcements. The MPAA is the maximum annual amount individuals can contribute to a DC scheme after previously accessing a pension flexibly.

While some industry figures cheered the triple-lock announcement and crackdown on pension cold calling, others expressed concern that a cut to the MPAA — which the Chancellor said would prevent “double tax relief” — amounts to an unfair and unnecessary tweak to an already-complex system.

But Hammond — seen as more of a Steady Eddie compared to the headline-grabbing antics of predecessor George Osborne who had a penchant for pulling rabbits out of hats — avoided any wholesale changes to pension tax relief. Despite speculation leading up to the Autumn Statement that the newly-installed Chancellor may introduce a flat rate of tax relief, Hammond kept well away.
And our research suggests many advisers would have been left disappointed. A majority (56%) of advisers we surveyed in October said they thought the Government should introduce a flat rate of pension tax relief — something Osborne was reportedly looking to introduce in the March Budget before performing a U-turn.

However, at just 56%, those advisers in support of a flat rate represent a slim majority. This suggests the adviser community has mixed views on the subject. And these views seem to be influenced by the composition of their client base. Our research found advisers with a younger client base are more likely to back a flat rate, with the percentage in support increasing to 60% for those with a client base consisting of more than 10% of people aged under 35. This could reflect the fact that those under the age of 35 are less likely to be high earners and therefore more likely to benefit from a flat rate.

But Hammond will likely revisit the idea of a flat rate at some point. With upfront tax relief costing the Treasury billions of pounds a year, this represents an area where the Government could make significant savings. And a flat rate would rebalance incentives to those on lower incomes and fit in with Prime Minister Theresa May’s equality drive.

While Hammond ducked the issue of a flat rate altogether and set out plans to clamp down on “double tax relief,” he announced that from 6 April 2017 the ISA annual investment limit will increase from £15,240 to £20,000. Some quarters of the industry will claim this will simply accelerate a shift in the retirement landscape away from pensions and toward ISAs.

But our research suggests advisers do not expect the ISA to play a prominent role in the retirement arena. Just 5% of advisers we polled expect the Lifetime ISA (Lisa) to be used as a replacement for pension savings, while 75% think the introduction of a workplace ISA would undermine auto-enrolment. And 58% are against the introduction of a pension ISA — something George Osborne considered launching.

Meanwhile, our findings highlight the move away from annuities. A large majority (88%) of advisers we surveyed think income drawdown is replacing/will replace annuities as the retirement default option. Falling annuity rates amid declining gilt yields have clearly dented demand for the product and steered some savers toward income drawdown and the greater flexibility offered. In terms of what products advisers are recommending to clients in drawdown, multi-asset funds — cited by 76% of respondents — top the list. This provides an opportunity for asset managers to capitalise on the move away from annuities and toward drawdown by strategically focusing on multi-asset funds.

Finally, our research points to waning enthusiasm for auto-enrolment. Just 15% of advisers we polled think auto-enrolment represents one of the biggest growth opportunities for their business — down from 21% in our March study.

The question now is whether enthusiasm for Chancellor Hammond will wane after an Autumn Statement that announced a cut to the MPAA and set out a rather gloomy analysis of the economic impact of Brexit. займы на карту срочно займ без кредитного рейтингазайм студентузайм с черной кредитной историей