Pensions

 Background

Pilots feel the current pension system – including the existing tax relief framework - works. They want stability and fear any changes could undermine the system and put people off saving for their future.

BALPA believes recent changes to the annual and lifetime allowances are already putting higher rate tax payers off saving. Professionals are reducing their pension savings or pulling out of them altogether, a problem that would be accelerated if the Treasury decide to reduce or abolish higher rate tax relief as has been recently mooted.  

 BALPA Position

The immediate policy aim should be to restore stability and rebuild confidence in the existing pensions system by hitting the pause button on any further pension tax changes and by creating an independent retirement savings commission with a remit to safeguard the future of pensions for all working people in the UK.

BALPA is also working to ensure DC pension schemes are improved as it believes many will not deliver an adequate retirement income.

Pilots are working with other professionals (doctors, dentists, civil servants and senior police officers) to highlight the potential consequences of reducing higher rate tax relief and protect pensions saving (both DB and DC).