Insider November 2016 - Pension reforms could cost £5 billion

The report examined the projected economic effects of a range of the ex-chancellor’s reforms, including the pension freedoms and savings products such as the Help to Buy ISA.

The effect these reforms could collectively have on the public finances are: Ÿ

  • the initial effect will be positive with a peak gain of £2.3 billion in 2018/19
  • the effect turns negative in 2021/22 ŸŸ
  • the net cost continues to rise, eventually reaching £5 billion in 2034/35.
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