A partner in KPMG’s People Powered Performance team, says: “The change in tax free status on ISAs and pensions will lead to radical thinking on how savings are drawn upon in the future.
“As the tax benefits under ISAs can now be preserved after death, they are becoming as attractive as pensions. The result is that we have a genuine and real alternative to saving through a pension scheme. In particular after people turn 75, ISAs become significantly more attractive which might lead to people deliberately channelling their savings away from pensions and into ISAs.”
Mike Petrook, KPMG Press Office
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.