WMA responds to Osborne’s budget to ‘put the next generation first’ and ‘get investors investing’ – 16th March 2016

As a leading advocate for establishing a culture of investment in the UK the Wealth Management Association (WMA) met announcements in Osborne’s budget to ‘put the next generation first’ and ‘get investors investing’ with enthusiasm.

While we await the detail in future consultations, the initial proposals to start a ‘Lifetime ISA’ enabling those under 40 to save up to £4000 a year, with the Government contributing £1 for every £4 put away by investors, is a step toward this goal.  This generation, often referred to as Millennials, could potentially be one of the first to be worse off than their parents¹ and it is cited that 53% of 26-35 year olds have no pension plan whatsoever², so reforms to encourage investment and planning for their future are urgently needed.

Of course investing for your future is an important consideration for everyone and it is encouraging to see this acknowledged again by the Government by the further increase of the current ISA limit from £15250 to £20000, and also the cut in Capital Gains Tax from 28% to 20% (18% to 10% for basic rate taxpayers) which will help long term retail share owners take advantage of any rise in the value of their holdings for their retirement.

Commenting on the budget, WMA Chief Executive Liz Field said:

“These initiatives are very welcome as we continue to work towards establishing a stronger and more widespread investment culture in the UK.  Saving for your future through investing is at the heart of our industry, and the Chancellor’s commitment to ‘get investors investing’ through raising the current ISA limit and creating a lifetime ISA for those under 40 is crucial for the UK as a growing population with increasing longevity.

This chimes well with the work we have been undertaking at the WMA and the launch of our Millennials Forum at the beginning of the year.  This group, made up of 30 to 40 year olds from within the WMA community, is currently debating the way the industry can meet the challenges faced by current and future generations.  These findings will be published in the Summer”.