Speculation 'Damages' Savers' Pensions

Pre-Budget speculation and 'kite-flying' tactics have reportedly 'damaged' hundreds of thousands of UK savers' pensions. Mark Fitzpatrick, chief executive of wealth manager St James's Place, stated that fears of a tax raid led many to prematurely withdraw funds from their retirement accounts. This speculation, which mirrored events from the previous year but lasted longer, has caused individuals to miss out on the benefits of leaving their money invested.

Fitzpatrick emphasized the negative impact of such uncertainty on long-term pension investments, which people rely on for decades of retirement. He appealed to the government to limit periods of policy speculation, noting that people act on rumors, and premature withdrawals can harm future financial security. He stressed the importance of confidence in pension savings for retirement planning.

These comments align with broader concerns from the City of London regarding 'kite-flying' ahead of the Budget. Other financial leaders have also criticized prolonged periods of policy speculation, citing it as a detrimental strategy. Recent surveys have indicated a slump in private sector activity, with firms left in 'limbo' due to pre-Budget uncertainty.