Pension pots could be hit with higher tax as the UK Government tries to plug a growing gap in the British labour market, warns the Investment Director of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The warning from James Green of deVere Group follows major shifts in Britain’s workforce following the pandemic. According to data from the Office for National Statistics (ONS), an estimated 575,000 people have left work since the start of the coronavirus pandemic, which is equivalent to almost two per cent of the UK’s workforce.
He said: “There have been major and previously unforeseen - and therefore unplanned for - changes in the UK’s labour market since the pandemic. It’s of significant concern for the government that there’s been a considerable rise in people retiring early, often in their 50s, since the events of 2020, many people simply haven’t gone back to work post-pandemic.”
