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What if we Lost our 25% Tax Free Lump Sum? 

Chris Palmer
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30 окт 2024

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Комментарии : 71   
@chrispalmer24
@chrispalmer24 День назад
📊👉You can grab the investment calculator I mentioned in the video here: www.chrispalmer.co.uk/roadmap
@DaBurgeo
@DaBurgeo 22 часа назад
Download link doesnt work 😞
@warfish0r
@warfish0r 22 часа назад
Thanks Chris. There seems to be an error in the higher rate SIPP column - it applies the 42% relief against column "D" instead of column "B" meaning that it is stacking the 28% and 42% relief. It would be pretty crazy if it really worked this way!
@warfish0r
@warfish0r 22 часа назад
Also, I would be interested if LISA could be added to the comparison. Perhaps it could be better for basic rate tax payers if the pension lump sum is restricted?
@chrispalmer24
@chrispalmer24 21 час назад
@@DaBurgeo What error are you getting?
@JR-el7et
@JR-el7et 23 часа назад
There are quite a few scammers in the comments stating how great their investments are and name dropping their advisors, they also have loads of fake replies congratulating them or repeating the advisors name. BE VERY CAREFUL!
@chrispalmer24
@chrispalmer24 21 час назад
Thank bud - It's relentless, I delete like 20+ a day
@pataleno
@pataleno День назад
I'm 55 and ready to retire anytime depending on the budget. If they tinker with pensions then they are asking for trouble. I will spend mine before 67.
@JW-se7br
@JW-se7br День назад
Happy hour - Chris and Damo uploads within the same 20 mins 😊
@chrispalmer24
@chrispalmer24 День назад
Thanks mate, an honour to be mentioned in the same sentence 😊
@HarunTosun-wg4rc
@HarunTosun-wg4rc 4 часа назад
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 and first half of this year with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
@gavjlewis
@gavjlewis День назад
I think for most people paying into a SIPP then it will be post tax income. So if you take the £200 that you would have put into your ISA and put it into a SIPP account you would get a £50 uplift (25%). So based on that you would have a pot of £409k and not £495k. As for removing the lump sum I'm doubtful it will ever happen. They just won't move the allowance. So if you have a £3m pot you will be stuck at £268k allowance or about 9% tax free. So it encourages regular people to save to try and hit the £1m pot size but taxing people who are wealthier and have even bigger pots. It will get them investing in businesses and spending which earns the government tax revenue through corporation tax and VAT.
@tayls3215
@tayls3215 23 часа назад
Thanks for all your time and effort chris. I've downloaded the retirement calculator. And another great video too
@OneAndOnlyMe
@OneAndOnlyMe День назад
People in the UK really need to be planning to retire aged 50-55. Waiting till 60 or later means they risk a retirement with poorer health. To get many years out of a good retirement where they still have good health, people should aim to retire much earlier. Statistically people's health starts to deteriorate from 63 in the UK.
@AgileSnowWeasel
@AgileSnowWeasel День назад
That, or factoring in sabbaticals into their work life. A month every couple of years, or two months every job hop. That's making the most of life when you have to work.
@JPnielsen
@JPnielsen День назад
I hope all the Labour voters are happy. Labour are going to do their best to stop people building generational wealth. Gotta keep the plebs poor. We can't have people retiring early.
@JW-se7br
@JW-se7br День назад
Very happy thank you!
@googlesucks925
@googlesucks925 День назад
​@JW-se7br you're not very smart
@JW-se7br
@JW-se7br День назад
@@googlesucks925 Smart enough to realise you have to pay for good public services.
@JPnielsen
@JPnielsen День назад
@@JW-se7br So you hate poor people and want to stop them from building generational wealth and retiring before they're 70. Well, at least you're honest for a Leftist.
@JW-se7br
@JW-se7br День назад
@@googlesucks925 Smart enough to realise you have to pay for good public services.
@annanatalia6640
@annanatalia6640 День назад
Interesting video Chris and well presented! Are you sharing the calculator? 😊
@chrispalmer24
@chrispalmer24 21 час назад
Thanks Anna - yeah it's here! www.chrispalmer.co.uk/roadmap
@Danc1978
@Danc1978 День назад
I didn’t think you pay NI contributions from a pension, no matter what age you retire, providing you have enough qualifying years of NI payments? NI contributions are paid from employment and self-employment and not on payments from a pension??
@jamesburke6739
@jamesburke6739 День назад
Pension is unearned income, so no NI as exempt.
@ant270
@ant270 23 часа назад
for now......
@Janeward871
@Janeward871 21 час назад
Great informative video. Wonder if you could do a follow up to add comparison in a LISA where you get the bonus and then tax free on the way out?
@rjsale
@rjsale День назад
For £478.93 in Year 1 of the higher rate tax SIPP to be equivalent to £200 after tax & NI implies the person's Tax & NI total about 58%, which seems wrong (200 / 0.42 = 476.19). For the basic rate SIPP I see that 200 / 0.72 = £277.78, which looks right for 20% tax + 8% NI leaving the person with 72%. Where is my mistake?
@bencarter8905
@bencarter8905 День назад
You haven’t made a mistake. When he’ll have done the formula he’ll have linked it to the basic rate tax field rather than the post tax 200. Ie he did 277.78 / 0.58 =478.93. The mistake is that he based the tax relief on top of the 20% tax relief which is why the higher rate tax looks so good in his example due to double counting tax relief
@dwuk99
@dwuk99 День назад
I spotted it too as £478 sounded much too high - I think 0.58 should have been used instead of 0.42 at 9:30 in the video - unfortunately this makes such a massive difference to the 40% comparison that I think those sections of the video should really be sliced out if practical
@warfish0r
@warfish0r 22 часа назад
​@@bencarter8905Yes this is the mistake, confirmed by checking the formula in the spreadsheet
@myfyrmadocjones
@myfyrmadocjones День назад
11:05 There is an error here. No NI is paid on pension income whether above or below SPA.
@Gtbg641
@Gtbg641 16 часов назад
Big relief on budget. Just goes to show that speculation is futile. Interested to hear your take Chris ❤
@chrispalmer24
@chrispalmer24 13 часов назад
Thanks mate. Will be up tomorrow. Just finished recording at 7pm 😂 a lot to cover!
@chrispalmer24
@chrispalmer24 12 часов назад
Thanks mate. Will be up tomorrow. Just finished recording at 7pm 😂 a lot to cover!
@rjsale
@rjsale День назад
The higher rate tax payer's year 1 SIPP amount of £478.93 implies they pay total tax + NI of ~58%, which seems wrong (£200 / 0.42 = £476.19). What mistake have I made?
@chrisarkwright1313
@chrisarkwright1313 День назад
Agreed, I'm not sure about that figure. I also thought you couldn't get an NI rebate on pension contributions, so the %s should be straight 20% and 40%.
@warfish0r
@warfish0r 23 часа назад
​​@@chrisarkwright1313 You can't get a rebate, however you can get NI exemption at source for pension contributions. It depends how your employer processes your pension contributions. At least this is how it works for the next few hours...
@warfish0r
@warfish0r 22 часа назад
Yes, I believe there is a mistake in the spreadsheet, it applies the 42% relief calculation on top of the 28% relief, instead of the ISA number
@grahamheath9957
@grahamheath9957 День назад
Sorry but there shouldn’t be NI on pension income
@louise3507
@louise3507 День назад
I don't think they would go for pensions as they want us to provide this for ourselves.. They may go for state pension as they want to steer us to take out our own pensions
@viernes-5
@viernes-5 День назад
Who was the idiot that voted 🏮 Labour ❓😮
@erlinghakaku9967
@erlinghakaku9967 День назад
yeah coz tories have been doing so well lol the other options are ass too. Lets atleast give labour time to make changes and see how it does before moaning bwt em
@AgileSnowWeasel
@AgileSnowWeasel День назад
Yeah, 100 days of Labour continuing the Tory Economic Plan as their first budget is tomorrow. If the economy is poor, it's down to the party in power the previous 14 years.
@jasonaris5316
@jasonaris5316 День назад
The whole point of the tax free lump sum is to encourage people to save very long term Take that away and no one will save into a pension (and this will impact public sector workers too as they receive a lump sum equivalent so that will go too)
@sallyrobarts6892
@sallyrobarts6892 23 часа назад
Where can I access that spread sheet please ?
@chrispalmer24
@chrispalmer24 21 час назад
It's here Sally - www.chrispalmer.co.uk/roadmap :)
@AgileSnowWeasel
@AgileSnowWeasel День назад
I don't think it's going to happen, a reduction to 20% over a few years sure, but this sum forms part of people's retirement plans - paying off debts before retirement, helping the kids, etc. You can't easily adjust your plans at short notice to cope with the loss of such a lump sum. I understand this is a What If? though.
@jamesburke6739
@jamesburke6739 День назад
I know it going to be painful tomorrow, but please don’t tell me RR is bringing in NI ok pension income. It’s currently exempt and should stay so !!
@dardog7734
@dardog7734 День назад
Really good video
@albedo0point39
@albedo0point39 День назад
Do you have a link for that Labour response that they’ll keep the 25% TFLS? I’ve not seen that anywhere. Also, they could say that they’re keeping it… but still reduce its maximum to £100k - that was the rumour wasn’t it?
@AgileSnowWeasel
@AgileSnowWeasel День назад
£100k would cover most people's private pensions - a sad statement in itself - but it would be yet another frozen threshold.
@dpatel1964
@dpatel1964 День назад
All Labour need to do is keep pension tax relief at 20% for all. Really easy and equitable. Will raise billions
@user-pd6pb2uq8r
@user-pd6pb2uq8r День назад
If they scrapped the tax relief I would save 60b a year, best thing to do is let pension payments go in tax free and tax on the way out
@ant270
@ant270 23 часа назад
@@user-pd6pb2uq8r IMHO I don't think it would work (or that they would do it)...due to fiscal drag those in higher tax brackets could put more into their SIPP to reduce the tax bill and then take out when retired keeping their income below the thresholds, reducing the governments tax take.
@user-pd6pb2uq8r
@user-pd6pb2uq8r 15 часов назад
@@ant270 could do, other way is to tax Before any deductions,
@kaymilstead4374
@kaymilstead4374 День назад
Let’s hope they don’t reintroduce the Lifetime Allowance otherwise there will be tax implications.
@AgileSnowWeasel
@AgileSnowWeasel День назад
I don't think they will, I feel they were disabused of the notion very early on, at least at the stupid low level it was set at by the Tories for a while until the dildo of consequences showed up and they panic-cancelled it entirely. £2m+ perhaps I could see.
@NM-hq1io
@NM-hq1io День назад
Off to Dubai we go - they will tax our savings next, mark my words
@coderider3022
@coderider3022 День назад
Can see it going to 20% which is still generous. No one under 50 should be planning to take it.
@lawrencer25
@lawrencer25 6 часов назад
All the bullshit from loads of RU-vidrs . So embarrassing to hear all that crap . Luckily most people with a brain doesn't take any crap from unqualified RU-vidrs 🙉🙈🙊😡😡😡😡😡😡
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