UK Pension

[Mounts Kipper]

35 minutes ago, Casino said:

Indeed you do

However, theyre not shutting up shop cos they cant get the staff, theyre giving up cos they cant make money

Check out the funding, theres no way wages are going to go up

You can get more at macdonalds than some folk who work on the railways....are we up for paying them more, as well?

I’ve not checked the governments  funding, but my wife looks after 5 kids on a busy day she’s on less than a tenner an hour, so £60 for the day, must be charging parents much more than £12 per kid per day. Suppose private pays much more than funded.  Not disputing what you say by the way. 

[Duck Egg]

32 minutes ago, globaldiver said:

More than likely unchanged, depending on how much it was worth. 
 

But your max has gone from £40,000 a year to £60,000, with potential to carry forward 3 years, if that isn’t enough. Ts and Cs apply.

Cheers fella 👍 

[Ani]

8 hours ago, Duck Egg said:

Thanks for the response but I'm still a bit lost.  I have a pension from a previous employer that I could withdraw from in August.  If I carried on in my current job with its own separate pension scheme, does this change allow me to put more money into that scheme and in theory get more paid into it by my employer too? 🤔 

I think so, once you take money from previous employers pension the £3600 would kick in. Now it will increase to £10000. 

I think !! 
 

This is how it works for me 

[Ani]

The impact of the current banking fears/crisis will be fucking up Pensions more than any benefits introduced. Pandemic, Ukraine and now this it  ain't been a good few years ! 

[globaldiver]

38 minutes ago, Ani said:

I think so, once you take money from previous employers pension the £3600 would kick in. Now it will increase to £10000. 

I think !! 
 

This is how it works for me 

Many variables.

The MPAA (£4,000 going to £10,000) only kicks in once you have taken taxable income. If you take only tax free cash, then you stay at Annual Allowance maximum inputs, £40,000 rising to £60,000. This could be more interesting for some, as the Lifetime Allowance ceases.

[globaldiver]

An acquaintance, Henry Tapper, offers his thoughts

https://henrytapper.com/2023/03/16/can-the-treasury-make-us-all-pension-millionaires/

[Mounts Kipper]

35 minutes ago, globaldiver said:

An acquaintance, Henry Tapper, offers his thoughts

https://henrytapper.com/2023/03/16/can-the-treasury-make-us-all-pension-millionaires/

I don’t think I’d be rushing back to employment with a 1 million pension pot. What will get people back to work is a declining stock market and pension investments disappearing up their own backsides….  Something tells me the banking crisis and fall in pensions could be manufactured. I’m reaching for the Tin foil hat.

Edited March 16, 2023 by Mounts Kipper

[Spider]

Labour are saying they’d immediately reverse the pension changes made yesterday if they are voted to power.

This is where they are pricks. That’s clearly just a “we don’t like Rich people” tactic and they really need to stop with petty shit like that.

If it was a policy that directly kicked the poor in the bollocks it would make more sense, but they don’t half let themselves down at times.

Thing is, they don’t need to do it. They’d romp home simply by holding up pictures of food banks.

 

[Ani]

1 hour ago, globaldiver said:

Many variables.

The MPAA (£4,000 going to £10,000) only kicks in once you have taken taxable income. If you take only tax free cash, then you stay at Annual Allowance maximum inputs, £40,000 rising to £60,000. This could be more interesting for some, as the Lifetime Allowance ceases.

You are right, I was as I said talking about my situation. 
 

I did mean to add 'it is a pretty complex area with many variables, speak to an IFA before you do anything.' 

[globaldiver]

41 minutes ago, Spider said:

Labour are saying they’d immediately reverse the pension changes made yesterday if they are voted to power.

This is where they are pricks. That’s clearly just a “we don’t like Rich people” tactic and they really need to stop with petty shit like that.

If it was a policy that directly kicked the poor in the bollocks it would make more sense, but they don’t half let themselves down at times.

Thing is, they don’t need to do it. They’d romp home simply by holding up pictures of food banks.

 

Quite right. Student politics.

Aside of the “rich”, it also sends a message about aspiration.

[globaldiver]

And Rachel says it goes…

[Mounts Kipper]

21 minutes ago, globaldiver said:

And Rachel says it goes…

The Labour Party have to not just oppose whatever the Tories do, seems they are going down the route of the SNP, unless there is some detail and thought out rationale behind the decision then folk will see right through it. 

Edited March 16, 2023 by Mounts Kipper

[Tonge moor green jacket]

Quality. 

The opposition have been a protest party for some time. Which is fine and has worked, particularly whilst Boris was shooting himself in the foot.

Time to start fleshing out the bones.

As the above shows, as with any party, there are skeletons aplenty to hang the meat from.

[Casino]

I wont vote against the tories because theres a better option*

I will be voting against them because they are a set of bent cunts

 

* fortunately, there is a better option

[Casino]

As for the specific charge, i dunno what they will do, but if the changes could be engineered to support sectors where it is an issue rather than all rich folk, id scrap it, too

[Biggish Dave]

I fail to see how abolishing pension limits is anything but positive news. Christ knows we needed some positive news. Ride out the storm Mounts - bull runs, bear runs etc roughly a 14 year cycle. The good times not far away lol

[Nowack]

Dropping the cap a few years ago may have helped get a few doctors back when it was a reason for many taking early retirement (I believe there was a way round it by "retiring" for a few months). GPs are not leaving the profession at the moment because they cannot put money into a pension. 

[Tonge moor green jacket]

1 hour ago, Nowack said:

Dropping the cap a few years ago may have helped get a few doctors back when it was a reason for many taking early retirement (I believe there was a way round it by "retiring" for a few months). GPs are not leaving the profession at the moment because they cannot put money into a pension. 

They were a while back but not now?

Why is that then?

Given it's been an issue increasingly in the news and both parties agree(d).

[globaldiver]

1 hour ago, Nowack said:

Dropping the cap a few years ago may have helped get a few doctors back when it was a reason for many taking early retirement (I believe there was a way round it by "retiring" for a few months). GPs are not leaving the profession at the moment because they cannot put money into a pension. 

They most certainly are leaving because of the pension situation

https://www.bma.org.uk/news-and-opinion/government-raises-annual-allowance-for-pensions

[globaldiver]

Labour do have form when it comes to protecting the pensions of certain groups.

Lord Falconer persuaded Tony Blair to make the Judges Pension Scheme an unauthorised scheme. The effect of this was that the Lifetime Allowance didn’t apply and that they could build up another fund, then up to £1.8m, in a tax advantaged manner.

Kerching.

Judges pension was a 40ths scheme at the time, maximum benefits accrued after 20 years. (Cash was on top). No contribution was expected from the Judge (changed from 2012)

From memory Falconer and Blair were best mates (?)

 

[MalcolmW]

7 hours ago, Tonge moor green jacket said:

They were a while back but not now?

Why is that then?

Given it's been an issue increasingly in the news and both parties agree(d).

GPs are not leaving the profession, but many of the 59% or so who are female can avoid higher-rate tax by working 3 days a week, and spend time with pre-school children. So long as their partner is also a high earner it gives a healthy work-life balance for the GP (pity about the patients though).

[MalcolmW]

7 hours ago, globaldiver said:

Labour do have form when it comes to protecting the pensions of certain groups.

Lord Falconer persuaded Tony Blair to make the Judges Pension Scheme an unauthorised scheme. The effect of this was that the Lifetime Allowance didn’t apply and that they could build up another fund, then up to £1.8m, in a tax advantaged manner.

Kerching.

Judges pension was a 40ths scheme at the time, maximum benefits accrued after 20 years. (Cash was on top). No contribution was expected from the Judge (changed from 2012)

From memory Falconer and Blair were best mates (?)

 

Falconer and Blair shared a flat as young barristers.

The Judicial Pension scheme has been watered down (just like the Fire, Police, etc were) so many retired early to escape the changes, leading to a shortage of suitably experienced candidates. (Labour can no doubt bring in some TUC stars to fill the gaps).

[globaldiver]

From ONS Data: 

Top 1% earn £688,228+

Top 25% are on £76,098+ - which the pensions caps WILL affect. 

That includes Doctors, Consultants, and many other professional trades.

* am rechecking figures

Edited March 17, 2023 by globaldiver

[Winchester White]

1 minute ago, globaldiver said:

From ONS Data: 

Top 1% earn £688,228+

Top 25% are on £76,098+ - which the pensions caps WILL affect. 

That includes Doctors, Consultants, and many other professional trades.

So not 1%, it seems

I must admit I am clueless when it comes to pensions. How will the changes affect the top 25% of earners? What I mean is; if I earn say £80k a year, what changed in my favour?

[globaldiver]

Just now, Winchester White said:

I must admit I am clueless when it comes to pensions. How will the changes affect the top 25% of earners? What I mean is; if I earn say £80k a year, what changed in my favour?

I think it’s more that the introduction of the cap could affect 25% in the future. 

Looking at your question, it means that if you put in enough and/or have decent investment returns to bust the Lifetime Allowance, then you wouldn’t be subject to an additional charge on busting (and/or age 75)

This could save a lot of money. One of the key benefits, in my view, is the ability to continue to invest “correctly” to achieve your desired income throughout life, rather than keeping an eye on the Lifetime Allowance and tax you might pay.

Hope that makes sense!