UK Pension

[Winchester White]

30 minutes ago, globaldiver said:

Lifetime Allowance abolished; great policy.

Just on the radio that this affects only 1% of pensions.

[Spider]

[Spider]

1 minute ago, Winchester White said:

Just on the radio that this affects only 1% of pensions.

Guess which 1% that is

[globaldiver]

11 minutes ago, mickbrown said:

Ta. Is the annual allowance still the same?

Up to £60,000

[globaldiver]

5 minutes ago, Winchester White said:

Just on the radio that this affects only 1% of pensions.

Correct, but many doctors, which is where much of the pressure came from.

[globaldiver]

4 minutes ago, Spider said:

Guess which 1% that is

Politics of envy isn’t appropriate to this matter.

[Spider]

3 minutes ago, globaldiver said:

Politics of envy isn’t appropriate to this matter.

It’s not envy. I said it was good news.

Shame it couldn’t affect larger swathes of the population.

As I say, a chancellor is obliged to throw crumbs everywhere. Where the bigger ones land isn’t necessarily coincidence.

[globaldiver]

It was bad policy in the first place.

Yes, a restriction outset saves on tax relief, but to restrict at both ends stopped people investing funds correctly; they can now invest to create an income for life without having to consider the lifetime allowance. 

[Spider]

4 minutes ago, globaldiver said:

It was bad policy in the first place.

Yes, a restriction outset saves on tax relief, but to restrict at both ends stopped people investing funds correctly; they can now invest to create an income for life without having to consider the lifetime allowance. 

A good thing.

As for the rest. Meh.

[Not in Crawley]

The childcare thing will be huge for many.

[mickbrown]

15 minutes ago, globaldiver said:

Up to £60,000

Well that's lovely 😃

[Ani]

27 minutes ago, Mounts Kipper said:

You can also put 10k into your pension per year after you have begun to take your private pension, that has risen from 4k. 

I missed that ! That is good news for me if decide to do a bit of work. It removes a barrier to the over50s who might have been reluctant to return to work. 

[globaldiver]

11 minutes ago, Spider said:

A good thing.

As for the rest. Meh.

What would you want? People get full tax relief anyway.

The amount of tax free cash has been capped at 25% of the current LTA, so £268,000 or so.

[globaldiver]

1.3 Reforming pension tax thresholds

As announced at Spring Budget 2023, the government will legislate in Spring Finance Bill 2023 to increase the Annual Allowance from £40,000 to £60,000. The Money Purchase Annual Allowance and the minimum Tapered Annual Allowance (TAA) will both be increased from £4,000 to £10,000, while the adjusted income threshold for the TAA will also be increased from £240,000 to £260,000. The government will also legislate to remove the Lifetime Allowance (LTA) charge for 2023 to 2024 in Spring Finance Bill 2023 and will deliver the technical changes necessary to abolish the LTA from April 2024 in a future Finance Bill.  The maximum Pension Commencement Lump Sum for those without relevant protections will be retained at its current level of £268,275 and will be frozen thereafter. Lump sums currently taxed for some individuals at 55% above the LTA will be taxed at an individual’s marginal rate of income tax. These changes will take effect from 6 April 2023.

[Tonge moor green jacket]

51 minutes ago, Spider said:

“The only permanent tax cut in the budget is one for the very wealthiest. How can that be the priority?”

Pay doctors less then. Simple.

[Tonge moor green jacket]

48 minutes ago, Spider said:

Send that to Vladimir Putin.

[globaldiver]

3 minutes ago, Tonge moor green jacket said:

Pay doctors less then. Simple.

Much too simple!

[Tonge moor green jacket]

2 minutes ago, globaldiver said:

Much too simple!

He'd have screeched even louder then.

Also a sad view of the pension arrangement too- it applies to everyone, not 1%.

It's up to people how much they ultimately earn and put in a scheme. Start early and work hard.

Obviously not everyone will use the capacity but they wouldn't and won't have been affected by higher tax either way, so it doesn't change anything for them.

Still, some have to find fault in everything. 

No comment from him on the massive increase in child care funding- one comment I've heard is that it roughly doubles spending in that area. Gloria del Pierro currently describing the move as huge, and the missing piece of "social security "

Obviously a benefit to younger people with less money in general, which will increase their standard of living from where it would have been.

 

[Spider]

57 minutes ago, Spider said:

A good thing.

As for the rest. Meh.

I was worried I'd written bad not good, but it appears I wrote good.

And somehow, it's a comment of negativity.

Now, I don't want to start questioning IQ's, but when I were a lad, good was a positive word.

It may have changed in todays polarised society.

😁🤪

[Spider]

The only people I know who pay anything like £40k a year into their pensions are company owners and folk who are already very well off.

I certainly don’t know any “normal” families with kids and mortgages who will be glad of the extra headroom of £20k extra tax free pension savings.

Im sure there are stats to back this up but fuck it, I’m going to take a leap here and say such people probably aren’t the majority.

[Spider]

51 minutes ago, Tonge moor green jacket said:

Send that to Vladimir Putin.

go on, I'll bite

How is our standard of living of interest to Vladimir Putin who, I've just checked, isn't in our government?

If it's a gas price thing, have a look at wholesale prices 

[globaldiver]

2 hours ago, Ani said:

I missed that ! That is good news for me if decide to do a bit of work. It removes a barrier to the over50s who might have been reluctant to return to work. 

Do you utilise the £3,600 a year already?

[globaldiver]

Employer sponsored death benefits

https://www.grouprisk.org.uk/2023/03/15/chancellors-spring-budget-boosts-employer-sponsored-death-benefits

[Duck Egg]

4 hours ago, Mounts Kipper said:

You can also put 10k into your pension per year after you have begun to take your private pension, that has risen from 4k. 

How does this work in practice?

If I start taking my private pension this year, where do I send the 10k a year to?   Presumably its done to boost my state pension when/if I get to 67? Or have I got this all arse about face?

[Mounts Kipper]

1 minute ago, Duck Egg said:

How does this work in practice?

If I start taking my private pension this year, where do I send the 10k a year to?   Presumably its done to boost my state pension when/if I get to 67? Or have I got this all arse about face?

I think your current pot crystallises when you access it, so any new money will go into a new pension pot. Think that’s how it works.