Pension saving

I HAVE read John Birkett’s letter (4 June) and feel I must reply.

Most pensioners do not pay 40 per cent tax, with most having no works pension. Most are not well-off, so I am unsure why he asks why “well-off” people should be given tax benefits.

Firstly, most state pensioners didn’t pay 40 per cent tax, nor do we have final-salary pensions little different from our wages in employment, putting us in the 40 per cent bracket. In fact most pensioners have no works pensions, do not earn high salaries and have low incomes. So I am unsure of why Mr Birkett is asking why “well-off people should be given tax free benefits”.

The answer to his ramblings is simple: raise pensioners’ tax-free allowance in line with inflation and lower the threshold where top earners pay 40 per cent on pensions/salaries/savings.

IAN MURRAY

Broomhall Loan

Edinburgh