Squeezing the Pensioners ’till the Pips Squeak
British pensioners and those on the brink of retirement feel “betrayed” by the coalition government’s economic policies – and, as a result, a growing number are considering moving their retirement funds out of the UK, says the boss of the world’s largest independent financial advisory group.
The comments from Nigel Green, chief executive of the deVere Group, come as it is revealed that David Cameron is the third least favourite post-war Prime Minister, according to a survey by Saga, the over 50’s group.
Mr Green notes: “Since the notorious ‘Granny Tax’ budget six months ago, an increasing number of our clients have told us that they feel betrayed by the coalition government’s monetary and fiscal policies.
“The scrapping of age-related benefits, tax changes, quantitative easing (QE), and low interest rates has meant that pensioners and those retiring imminently have paid a disproportionately high price as the search for a solution to the current economic crisis goes on.
“Indeed, latest research demonstrates that British pensioners will be a further £11.5 billion worse off by such policies by 2014.”
He continues: “This section of society is far more financially-savvy than many policymakers believe and, in order to safeguard their retirement funds, a growing number of the over 50’s are seeking advice on moving their pensions out of the UK.
“Specifically they’re seeking advice on HMRC-recognised QROPS, which allow pension funds to be moved into a jurisdiction where they will be taxed less and where buying an annuity – which are on a downward spiral – is not compulsory.
“The QROPS part of our business has increased by 35 per cent since March. We believe this is, in no small part, a reaction to economic policies.”
The deVere Group is responsible for almost half of the £1.3 billion that has been transferred into QROPS since 2006.