§ Ruth Kelly
The Government recognise the value of saving and asset-ownership in providing people with security, comfort in retirement and long-term independence and security. To address the problems that may have discouraged people of all ages from saving in the past the Government are implementing a strategy designed to:
- create the right environment for saving;
- provide incentives to save through favourable tax treatment; and
- ensure everyone has access to the financial information they need to make informed savings decisions.
Young people will, in particular, benefit from pension rules allowing annual contributions of £3,600 irrespective of earnings and already benefit from the ISA rules which allow 16 and 17-year-olds to open a cash ISA. These measures provide the opportunity to begin saving tax-free at an early stage.