Aviva Boss Warns Against Pension Raids

In light of recent speculation regarding potential tax raids, including cuts to pension tax relief for higher-rate earners, Aviva's CEO Amanda Blanc has urged the government to reconsider such measures. Speaking during the release of Aviva's half-year results, Blanc emphasized the importance of encouraging long-term pension savings, which she argues are crucial for future investment in the UK economy. She warned that any changes to pension tax relief could have significant long-term consequences for savers. Blanc's comments come as speculation mounts that Chancellor of the Exchequer, Rachel Reeves, may limit tax relief for individuals in the 40% and 45% tax brackets. Analysis from AJ Bell indicates that such changes could force millions of higher-rate savers to extend their saving periods by an additional four years to achieve similar pension pot levels. This potential policy shift is part of a broader discussion, with Reeves also hinting at possible increases in capital gains tax and fuel duty. Despite these concerns, Blanc remains optimistic about the UK's investment landscape, noting that international investors are showing increased interest in the country compared to two years ago. She stated that recent civil unrest has not dampened this positive sentiment, asserting that the UK's economic fundamentals remain strong. Aviva's performance reflects this optimism, with analysts at broker Jefferies highlighting the company's strong delivery against its targets. Following the announcement, Aviva's shares rose by 0.7%, marking a 13% increase for the year.