Government 'must encourage long-term savings'

The government must make every effort to deliver a clear message about the benefits of long-term saving, it has been claimed.

Richard Saunders, chief executive of the Investment Management Association, said ministers should look to increase the individual savings account annual allowance every year, at least in line with inflation.

Additionally, the government should abolish the requirement for people to turn their pension savings into an annuity by the age of 75, he claimed.

Mr Saunders also called for the abolition of Stamp Duty on equities – something he said could lead to a permanent rise in gross domestic product.

He added: "Major progress has been made in a number of areas, but the UK cannot rest on its laurels.

"A further number of key steps are now required to ensure that the UK is seen as a serious domicile for fund management."

Consumers may be able to maximise their income by using comparison services to assess the best interest rates on savings.

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2009-11-02 13:29:30 © Moneyextra.com