2009 Budget needs incentives for people to save

The Association of Independent Financial Advisers (AIFA) has called on the Government to use the April Budget to provide people with the incentives they need to invest in their long term financial well-being.

Chris Cummings, AIFA Director General, said: "The current economic conditions demonstrate that the UK's reliance on credit cannot continue. The personal debt burden is now past the £1.4 trillion mark. It is therefore essential that the Budget includes measures which will incentivise people to save for their future.

"We would propose a review of tax incentivised savings regimes, an increase in ISA allowances and the encouragement of younger people to save for their future through the introduction of a Tax Free Savings account which would help them obtain the deposit on a home.

"We want to encourage people to provide for their own futures, so a review of the crystallisation rules and taxation regime for pensions is also necessary."

Cummings added: "In a downturn, access to independent financial advice is even more important, not least as it can help people re-engage with their long term financial well-being. We are therefore calling for the removal of the £250 tax limit for financial advice for employees, to encourage firms and employees to access independent advice, and as a result make more, and better, provision for themselves."