Leading UK care home platform, Elder, is calling on Chancellor Rachel Reeves to provide clarity on potential tax-free pension changes ahead of the upcoming Autumn Budget.
Speculation from media and analysts suggests that changes could be made to the 25% tax-free Pension Commencement Lump Sum (PCLS), causing an increase in pension withdrawals and anxiety for taxpayers.
According to the Financial Conduct Authority (FCA), pension withdrawals have risen by over a third in the past year, from £52.2 billion to £70.9 billion.
Pete Dowds, Founder and CEO of Elder, expressed concern over the Chancellor’s silence on the issue, stating that it was forcing families into making irreversible financial decisions.
“The cost of leaving families in this state of uncertainty is too high, and hardworking savers deserve stability and assurance for their retirement plans,” he said.
Dowds also emphasized the significance of the PCLS as a crucial source of accessible capital for self-funding families to cover the upfront costs of care. He warned that any changes to this tax-efficient capital would not only undermine the Government’s ‘Home First’ objective to support people at home and ease the strain on the NHS, but also accelerate the depletion of families’ savings.
Elder, now in its tenth year, is a renowned home care platform in the UK that matches older adults with self-employed carers for personalized and flexible home care services. The company’s mission is to enhance patient dignity and provide families with peace of mind by promoting the belief that home is the best place to age. To date, Elder has provided over 15 million hours of home care across the UK.
