Change for the worst for pension providers risks a standstill in the sector

Changes on higher earners taxation and National Employment and Savings Trust development may result in pension providers’ improvement standstill. 
According to Hearth Lambert Consulting business development director Brian Morgan that this might lead to lack of innovation as the pension providers will only get savers with middle income. As he says the government excluded high income earners who sponsor these pension plans. National Employment Savings Trust will only work with people who earn from £25,000 to £100,000.
This may lead to the situation when pension providers such as employers will take this challenge and will provide pensions to recruit new employees and retain those they have. All this will lead to corporate wraps development including corporate Isas and group self-invested personal pensions.
Warwickshire-based IFA MPA Financial Management is also worried that tax relief abolishment for high income earners because the majority of them won’t bother paying into a pension. This will result in other retirement plans development.