Savings

[hampshireblue]

Not full of the lunatics which seem to inhabit the politics thread.

I'm sure they're just biding their time.

 

[117 M34]

Don’t see why not.
Tax relief was given on every penny put in.
Why should there be further tax relief?

Because it takes away the incentive to save for later life.
Then you get a situation where lots of pensioners can't afford to pay for their heating and need grants

 

[flook]

Because it takes away the incentive to save for later life.
Then you get a situation where lots of pensioners can't afford to pay for their heating and need grants

if that's the incentive to save for retirement, then we really are fucked aren't we. The incentive should be so that you're not relying on handouts, or that you'll be able to continue to live reasonably comfortably once you give up earning, not that you won't be giving the taxman what you should have given him x number of years ago.

That's not to say I agree with taxing the 25%, it was part of the "deal" so should be honoured, same as state pension for all, no tax on ISA's etc

 

[hampshireblue]

Do we think that she will introduce a tax on the 25% lump sum pension allowance?

I doubt it without a longish lead in time. Lots of people will have that earmarked for mortgages, student fees etc. It's also important not to dis-incentivise saving for a pension.

 

[denislawsbackheel]

Because it takes away the incentive to save for later life.
Then you get a situation where lots of pensioners can't afford to pay for their heating and need grants

So the tax relief at investment and compounded growth isn’t enough incentive for you?
Fuck right off!

 

[denislawsbackheel]

I doubt it without a longish lead in time. Lots of people will have that earmarked for mortgages, student fees etc. It's also important not to dis-incentivise saving for a pension.

Because it takes away the incentive to save for later life.
Then you get a situation where lots of pensioners can't afford to pay for their heating and need grants

Nonsense.
Just say from X date there will be no 25% free lump sum.
You’ve already had tax free investment compounded over decades.
Many get 40% tax relief then only ever pay 20% tax when they draw the pension.
Pay due tax on all of it when you retire.

 

[west didsblue]

Another point about the 25% tax free lump sum is that unless you actually need that much in cash for something specific, if you’re going to invest it you probably won’t do better than what you’d get as the additional 33.33% gross on your regular pension payment when compared to your pension with the lump sum taken out.

 

[halfmist]

Another point about the 25% tax free lump sum is that unless you actually need that much in cash for something specific, if you’re going to invest it you probably won’t do better than what you’d get as the additional 33.33% gross on your regular pension payment when compared to your pension with the lump sum taken out.

Firstly I would rather be in charge of my own money than have some so called pension expert invest it for me, fuck it up and charge me annually for the privilege. Best thing to do if you retire before state pension age is to draw down on a private pension, get the 25% tax free deduction and utilise the balance to stay within your personal allowance. This allows around £15000 of private pension income to be received tax free every year.

 

[Blue Maverick]

Nonsense.
Just say from X date there will be no 25% free lump sum.
You’ve already had tax free investment compounded over decades.
Many get 40% tax relief then only ever pay 20% tax when they draw the pension.
Pay due tax on all of it when you retire.

And what time do you think is reasonable to do that, when labour changed public sector pensions in 2006 they gave 10 years notice that people would go onto a new scheme in 2015/16, however the tories then fucked this up by tapering it on age and many years later lost in court on age discrimination. For me if we hadn’t won it affected me massively or would’ve done had we nit beat the tories in court. I had planned to use my lump sum to pay off my mortgage as long as I could do that I was happy, if the changes had stayed I would’ve been royally fucked. You can’t just turn round this year and say to people we are taxing your lump sum it has to be a significant amount of time given.
For those saying you are better off not taking it and leaving it in your annual pension, bollocks, any finace person will tell you take the tax free as much as you can you could drop dead the next day and your family would see no benefit at all.

 

[west didsblue]

For those saying you are better off not taking it and leaving it in your annual pension, bollocks, any finace person will tell you take the tax free as much as you can you could drop dead the next day and your family would see no benefit at all.

Not necessarily. For most people the lump sum might be the better option but if you’re fit and healthy and you already have enough spare cash you might want a bigger pension. It’s what works for you that’s the right decision.

 

[denislawsbackheel]

And what time do you think is reasonable to do that, when labour changed public sector pensions in 2006 they gave 10 years notice that people would go onto a new scheme in 2015/16, however the tories then fucked this up by tapering it on age and many years later lost in court on age discrimination. For me if we hadn’t won it affected me massively or would’ve done had we nit beat the tories in court. I had planned to use my lump sum to pay off my mortgage as long as I could do that I was happy, if the changes had stayed I would’ve been royally fucked. You can’t just turn round this year and say to people we are taxing your lump sum it has to be a significant amount of time given.
For those saying you are better off not taking it and leaving it in your annual pension, bollocks, any finace person will tell you take the tax free as much as you can you could drop dead the next day and your family would see no benefit at all.

My Wife gets half my pension for life when I die…

 

[Dazzle84]

We have a holiday rental here in Wales and if we dont reach a rental figure of 50% occupancy we will get stung for 150% of the council tax. In laymans terms that will be between £5,500 to £7,500 per annum, the average rental doesn't make that...................Welcome to Wales, vote Labour and have a really lovely holiday. At our expense.

Sell the fucker then if life's that hard. A family could live in it full time.

 

[Dazzle84]

I've sold a couple of million in shares to stop any raid by increases in capital gains tax. I still have most of my shares though so I'm still going to hit by a lot

So you've avoided a bit of extra tax on any further profit

 

[west didsblue]

My Wife gets half my pension for life when I die…

Planning on going first?

 

[Blue Maverick]

My Wife gets half my pension for life when I die…

Wouldn’t it be better she got the tax free money if you died the day after retiring? So does mine and she’s already benefiting from tax free paying off the mortgage

 

[Blue Maverick]

Sell the fucker then if life's that hard. A family could live in it full time.

Although I agree with this I saw a report saying even if he did locals probably now couldn’t afford it and the tourism would disappear as they would have nowhere to stay so locals would have to move away, it’s just gone too far now and as they are changing the rules on Airbnb now as well lots could be coming up for sale.

 

[GH64]

My Wife gets half my pension for life when I die…

Lump sum doesn’t change the widows pension (still 50% of the original pension) in my scheme. I was surprised by that, worth checking.

 

[Blue Maverick]

Not necessarily. For most people the lump sum might be the better option but if you’re fit and healthy and you already have enough spare cash you might want a bigger pension. It’s what works for you that’s the right decision.

Fit and healthy today get knocked over tomorrow, I think with mine I’d have got about £3/400 extra a month in my hand, so I would have to live 30 years to get what I got in my lump sum. So 83! even if I didn’t need to pay my mortgage off I’d have took the tax free lump sum, enjoy it now before you get too old to enjoy with the best will in the world I wouldn’t be jetting round the world in my 70s I’d rather do it now.

 

[Blue Maverick]

Lump sum doesn’t change the widows pension (still 50% of the original pension) in my scheme. I was surprised by that, worth checking.

The fire service one is half after commutation, I’m worth more dead than alive tbh that’s why I check for roller skates at the top of the stairs every morning

 

[west didsblue]

Fit and healthy today get knocked over tomorrow, I think with mine I’d have got about £3/400 extra a month in my hand, so I would have to live 30 years to get what I got in my lump sum. So 83! even if I didn’t need to pay my mortgage off I’d have took the tax free lump sum, enjoy it now before you get too old to enjoy with the best will in the world I wouldn’t be jetting round the world in my 70s I’d rather do it now.

With those figures I’d do exactly the same but not all schemes are the same.