Thank God I took all my 25% tax-free lump sum last year when I retired. I really feel sorry for people who are about to retire in the near future with all this going on. It makes planning for the future so much more difficult ☹️.
@@OneAndOnlyMe - A black hole that didn't exist until Labour decided to give massive payrises to already well paid doctors & train drivers, and extra foreign aid.
I support them making progressive tax changes, all benefits should be means tested. As long as they do something else to help poor pensioners stay warm, I'm fine with them scrapping the heating allowance
So much for focusing on growing the economy instead of taxing us to death. Rachel will have to include the loss of tax revenue from the many who will emigrate because they can and are better off for doing so.
I don’t buy the argument that the rich are moving abroad because of pension taxes and inheritance taxes. Two reasons: 1) the rich cannot use pensions, if you earn above £260,000 you have a tiny amount you are allowed to contribute. 2) the rich do not pay inheritance tax, trusts or other tax structures mean inheritance tax is not paid. Those with a couple of million of net worth with large pensions are not the rich.
We are being run by a bunch of grown up radical students, none of which have had a proper job in their lives. So far they haven't made a single decision that actually makes sense. It's as if they are deliberately trying to bankrupt the country!
They could not possibly be worse than the last 14 years of mismanagement that have cost thousands of pounds to every family in the country. When it comes to money you have to be agnostic and stop thinking of political parties as sports teams. The Tories did not do a good job in many areas.
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Conservatism is kind in the main. It’s about preserving “what is” to some extent, making rational, considered changes when required, empowering people to be able to advance themselves without relying on the state, fostering independence, freedom and self-reliance, growing the economy through trade and enterprise etc. The problem with the Conservative Party is that there are no conservatives in it, just a bunch of neo-liberals, shysters and charlatans. 3/4 of them are more centre left than you may imagine. And Labour, well they’re just employing neo-liberal economic policies the same. All utterly useless.
Thanks for this, I saw Martin Lewis also couldn't get his head around the cutting of the fuel allowance, now this quandary that requires no pain by the rich and everything landed on the PAYE worker. Madness
Why should taxpayers be paying for a pain that the energy companies are causing? Winter Fuel Allowance is a state subsidy for energy barons to rape British people. Winter Fuel Allowance shd be scrapped and instead a social tariff be enforced for poorer people. Energy companies should pay, not the taxpayer
What do you mean no pain by the rich? The 40% tax payers are being spanked, bear in mind the 40% tax payers are exactly what it says on the tin… we only get paid for three days out of five. Would you be happy working five days for three days pay.
@@thread_astaireI think we know what rich is and those paying 40% tax, at low thresholds are not the rich. Let's define 'rich' in today's context, probably an individual receiving base and bonus remuneration in excess of £250,000 a year or in the USA, they call high income families earning more than $400k a year.
You'd hope any government can see the long term benefits of stability in this sense. Building trust through sensible incentives for retirement planning. Unfortunately we often see short-minded politics. Here's hoping for a broader vision 🤞
Such an easy solution remove tax relief on contributions going into a pension. And at the same time make all pension withdrawals tax free No tax in and no tax out
Crap idea, this punishes the saver because it is the tax relief each year that boosts the pot as well as compound growth for years. No tex relief going in and then it's pointless.
Glad I took my 25% max PCLS when I hit 55 earlier this year. Next steps is to look at IHT planning on what is left in my pot. certainly going to look at earlier, more and sustained gifting to my daughter. It is bonkers that those who have worked long and hard to get themselves in a strong position to be retire early and be self sufficient now have to start playing games to avoid the raiding and changing government pension landscape. I still have state pension mapped into my long term plans for me and the wife, but I fear next steps will be some sort of means tested state pension.
@@lordprotector3367 Who's just given out 22% pay rises to appease their donators, who's just thrown 11 Billion at an energy white elephant. Who's just thrown 11 Billion to foreign countries for their net zero, who's just given another 600 million to Ukraine, who's just increased the amount spent on looking after illegal migrants. They didn't need to come for pensioners.
I think it is totally disgusting that the government can change the ability to withdraw 25% tax free. Everyone has saved into pensions under the rules that we re in place and it is wrong that they might change the rules. I have left mine in place to hopefully accumulate even though I retired 2 years ago and don't want to lose this. If they did this it would trigger thousands to withdraw their money so i suspect it would be of immediate effect.Please keep us informed.
The tax free lump was only implemented as an incentive. Nowadays auto enrollment has taken over from the need for this incentive. And yes, the government sets the rules on tax treatment. It won't trigger mass withdrawals. If people did that, they'd be paying tax at a higher rate.
Not taxed going in taxed coming out, £267K is a pretty big lump sum and even if they make it £100K that’s a good amount. The rest will be taxable if taken at a rate above the personal tax allowance. I’m already in This position being retired before a work and state pension come in. Applying inheritance tax or other duties when/if passed on will be a killer. Not that it has formed my planning g on my pensions I plan to use the money for my wife and I. The wealth I pass on will be the house. The big issue here as mentioned in comments is that companies have had to offer pension schemes since late 90’s so we are close to being 30 years down that road which of course is extra to the state pension. So more people potentially should be in a good financial position as pensioners.
Not sure how they could apply this immediately as the pension companies systems would not be set up for this. They cannot simply remove this overnight.
As a higher rate tax payer, I don’t have a problem with a flat rate tax relief rate, it seems fair. The 25% tax free cash limit seems low at 100k as a 400k pension pot is below the PLSA’s moderate pension level. Inheritance tax is just crazy anyway but there is already a 75 year age limit on it so suspect they ‘ll just reduce that to eventually equal the pension age.
I am more concerned about the ending of pension freedoms or imposition of a minimum guaranteed income before flexible drawdown can be used. For a decade now, people have been building retirement plans around using flexible access drawdown, particularly when retiring early as they can take greater income initially and then reduce when other sources like state pension or deferred DB pensions are paid. Furthermore, many people transferred away from DB schemes in the last decade specifically because they prefer a fund they can access flexibly and leave the balance to their estate on death. I strongly suspect the ‘bean counters’ will decide what they can grab most money from rather than looking to fix many of the ill thought out pension legislation changes of the last 20 years. The inequalities in the current pensions landscape are horrific and I suspect incompetent meddling by this new government will only worsen an already broken system. Your thoughts?
I'm on the cusp of retiring early (56) still kicking the can down the road to an extent. The 25% tax free is of most interest to me atm. Do you think the changes will be brought in over night or E.G from the next tax year, allowing us like minded people to act before losing money? BTW just subscribed
When has anyone senior in the Labour Party with real power to make these changes actually said anything about reducing the tax free cash, changing inheritance on pensions or changing the amount of tax relief? Can you link to them saying any of this directly. I appreciate think tanks have been talking about it as well as others with no direct access to those who will make the decisions but that’s not anyone directly senior in the actual Labour Party talking about the budget changes. This is utter speculation dressed up as likely changes for clickbait. Could it happen, yes, do you know it will, absolutely not. So many uk RU-vidrs are on the bandwagon on this topic with the ‘potentially’ bandwagon dressed up as what will happen to get clicks. I have no issue with talking about what think tanks are saying but you’re projecting this to people as though it was labour policy and was going to be enacted, which you simply don’t know. I have subscribed but you really do need to present information more clearly that this is not something labour are actually saying directly and it’s all utter speculation at this point.
It is speculation, but that was inevitable considering that the seniors in the Labour party ruled out raising any of the other taxes that would actually raise serious money. Its simple maths, the money has to come from somewhere. Pensions and IHT are probably the only areas that they could raise it from.
@@glostergloster6945 Or they could admit they messed up in their bid for power, break their manifesto statement and raise IT and/or NI. Many governments around the world done this before. Makes fiscal sense instead of dicking around at the edges...
If Tax relief at 30% comes in, it will do wonders for my wifes pension. Both of us would contribute more to it, which in the long term (decades) means we improve our odds of exceeding the LTA if that comes back
Hi , so I have just seen your RU-vid video and I have subscribed now , do quick question about the 25% pot tax free, if they decide to tax that tax free pot , will we have time to withdraw the 25% , before it's affected, like the day of the budget, ,
I think that even if none of the expected robbery savings raids occur that the future message to the working population is not to save for retirement. What is clearly demonstrated is that our money is clearly in the vision of any Govt and because they are useless at budgeting for the future, they want it. I have taken the last of my 25% withdraw from my pensions as a precaution. My worry now is if means testing comes into effect. All my life there was to be a state pension at the end, first I had to wait longer to be eligible and now I am being told it's a benefit. I spent years of my life going without so that I could save for a reasonable private pension pot to top up my state pension and have a comfortable retirement, as recommended by previous Govts. Now it looks like they are going to forcibly tell me how to spend it, I'm so angry that I even have to consider what is likely to come.
wouldn’t it make more sense to just freeze the Tax free allowance which would effectively ‘reduce’ it but slowly? No way they reduce it for anyone with existing balances above that, would be a cap rather than a clawback IMO. IHT it should remain outside IMO as anyone with a high pension saver and one lower (eg have stayed at home to raise kids) may rely on that pension continuing if their partner passes away. Perhaps it can go into IHT once both partners die?
From $15k to $35k that's the minimum range of profit returns every month its not a bad one for me.. As a beginner, it's essential for you to have a mentor to keep your accountable...
Any ideas how a lower tax relief would interact with salary sacrifice? It’ll make the £100k tax trap particularly unpalatable if salary sacrifice can no longer be used to stay under it.
Tax system is already unfair for couples with a higher earner and one part-time or not working to look after the kids/old people. This will make it even worse compared to 2 earners with much more household income.
Wealthy people have been stuffing their pensions with money simply to avoid inheritance tax: pensions are meant to be for your old age, not tax avoidance schemes.
The plan the 30% tax benefit sounds very fair to me, however the 25% should be left alone as this will go into the economy and generate tax when spent or paying for services .As for your pot of cash maybe pay the tax you never paid when you saved the money. This would be fair. If everyone paid there fair share of tax when working then maybe IHT could be abolished.
IMO pensions tax breaks are to allow a reasonable income in retirement. We should not be using tax payers money to enable wealthy individuals to avoid inheritance tax. Note that inheritance tax does not apply to spouses.
IMO if Labour clobber pensions too hard they will struggle to get re-elected and open the door for Tories, who could potentially reverse what Labour do if they came to power again. Let's see!
What claims? These 3 possible tax changes are being widely spoken about here and in the media with think tanks like the IFS, Fabian Society and the Resolution Foundation giving their views. We shall have to wait to seem what the doom laden budget actually brings though.
Is it just me? These proposals sound kinda like a good idea. By 2050 65% of people will be retired and with a lower birth rate pensions as they currently stand are not sustainable with many of us in the good position of living longer. Many who complain about this appear to just be rich people wanting to hold onto their money and a fairer and more sustainable solution is needed.
Think its just you.Did you know vat was a rich tax when they brought it in now everybody pays it.They bring these changes about by saying it only affects the rich and before you know it Dorris and Bob and paying it.
It's precisely because many are living longer that the gov should be encouraging people to pay more into private pensions and not relying on state pension. The changes proposed would only discourage people from paying more into their pensions and make the future problem worse.
If I heard correctly, you said that a 20% tax payer would see their pension contribution be higher if tax relief was at 30%. That's not quite correct, if they paid their pension through their employer their net pay would increase due to the extra tax relief not their pension contribution unless they deliberately increased that contribution.
@@oorya1780 if the person used salary sacrifice the pension contribution would increase for no additional increase in the amount being sacrificed not the net pay.
I don't see why a pot of money that hasn't been taxed should be allowed to be passed to someone else without any tax being collected on it. Also, don't see why a tax free lump should be allowed to be taken as income. All income should be taxed consistently.
Well if you live beyond 75, then inherited pensions are taxed as income on the recipient. As for the 25% tax free element, that is the way pensions have been for decades. To change that now would be grossly unfair.
I've told my son not to bother. He will never own a house even though he has a good job.Spend your money now and enjoy life. I saved all my life and paid into the system and now they just want to take it all away The way the world is going it probably won't be around in 40 years.
@@jablot5054 I hear you! It seems you're better off in many ways just spending today and to hell with tomorrow! I've worked hard for 40 years and done "the right thing" paying into my pension, and now potentially I could see the goal posts moved!
