OREANDA-NEWS. Aon plc (NYSE:AON), has commented on today’s Autumn Statement from the Chancellor of the Exchequer.

On changes to Stamp Duty
Lynda Whitney, partner at Aon Hewitt said:
“There has been much talk of pension scheme members taking large amounts of cash at retirement with the intention of buy-to-let property income becoming their pension. The combination of the increase in stamp duty on buy-to-let properties announced today and the existing taxation of cash above 25% will discourage this – and maybe even be seen as early steps in increasing inter-generational fairness.”

On the State Pension Age and life expectancy

Lynda Whitney, partner at Aon Hewitt said:
“The State Pension Age (SPA) is increasing with life expectancy but given the blip in the mortality rate in 2015, when will they measure it? This could make a material difference.

“The Basic State Pension was announced as ?119.30 and the flat rate State Pension as ?155.65, but given the various adjustments under each system, the general public is largely in the dark on what they will really get. The government and the pensions industry need to make sure relevant information is more easily available for those approaching SPA.”

On the tapered Annual Allowance

Matthew Arends, partner at Aon Hewitt, said:
“George Osborne made no further comment about the tax allowances for pensions, so we can expect the previously announced restrictions to the Lifetime Allowance and Annual Allowance to come into force from April 2016.  

“Disappointingly, this means we will see a tapered Annual Allowance for high earners - a confusingly cumbersome system that could lead to widespread accidental non-compliance.  We urge employers and trustees to plan their communications with relevant members, and their administration processes, in good time.”

On the results of consultation on a secondary annuity market
Kevin Wesbroom, senior partner at Aon Hewitt said:
“We are surprised this idea has not been kicked into the long grass.  However, we hope that the Government will extend similar flexibility to defined benefit pensioners by allowing them to sell or convert their pension increases.”