Good article

https://www.bloomberg.com/opinion/articles/2023-01-19/the-uk-beats-france-for-one-of-the-best-pensions-in-the-world?utm_source=website&utm_medium=share&utm_campaign=mobile_web_share

5 hours ago, Winchester White said:

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

But 50% of wways pensions. 

39 minutes ago, Mounts Kipper said:

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. 

Or the same one, depending on the pension provider 😁

43 minutes 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?

Nothing to do with state pension, which is maxxed at 35 years and can’t be increased, until and if you defer it at state retirement age.

You can check if you are headed for the max 

https://www.gov.uk/check-state-pension

If not, you can look to top up. There’s something about doing summat before July.

4 hours ago, Tonge moor green jacket said:

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

 

Really? Is it that easy!?

It is a positive move but let's not try and pretend it can and will benefit everyone,  it is targeted to higher earners, in particular those in the NHS who were leaving due to previous constraints 

I'm no Tory but I agree with the pension changes. The Pension Tax has been hugely detrimental to the NHS and making genuine inroads into the waiting lists couldn't have happened without this. Hunts time as Health Secretary has no doubt influenced this decision and lots of ordinary folk will get their treatment quicker as a direct result. 

1 hour ago, Tonge moor green jacket said:

As suspected you truly are a bit numb.

So here goes.

Inflation- reduces the value of everyone's money. Inflation caused (largely though not entirely) by his war.

We've already touched upon gas prices previously, and as someone who purports to know a bit about the energy sector, you ought to know that companies agreed deals to buy gas at a high price. Once those deals, have ended, and new deals at lower prices come in, we can all benefit from lower prices again.

Everyone in the world has been affected by inflationary pressures and many will suffer a standard of living drop.

Given its on the back of a pandemic and a huge financial crash a decade or so previously, its no wonder many countries are suffering low growth.

Interestingly, Poland (which Sir Kier seems to think can't be successful) benefited for years of net money in (from the eu) was growing well before the pandemic. Countries like us subsidising this in the process (the great EU design). The country now is still doing well on the back of a positive attitude towards growth and income generation, without it being a dirty word or concept that it appears to be here. 

You are one of the great bemoaners of others' wealth, which is a symptom of many here.

I bemoan others wealth.

When? And be specific because I’m a capitalist at heart.

and your post was the usual whataboutery. The grand brexit master plan has fallen to shit and we are , more than ever it seems, at the mercy of events outside our sceptred isle.

When will we take responsibility for ourselves? Because that’s what the visionaries tell us we should be doing. Juche-like self sufficiency.

4 hours ago, globaldiver said:

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

I did last year as I did some work. If I did another 12 month contract would let me us full amount , I was above in year I worked . 

1 minute ago, Ani said:

I did last year as I did some work. If I did another 12 month contract would let me us full amount , I was above in year I worked . 

You can still do it even if not working. £3,600 costs £2,880.

Up to the Lifetime Allowance, but as that is now going….

1 minute ago, globaldiver said:

You can still do it even if not working. £3,600 costs £2,880.

Up to the Lifetime Allowance, but as that is now going….

My income is currently all from my Pension. I take £12700 tax allowance and then top up with whatever I need without going above basic rate tax. Plus the 25% tax free. Although to watch that as I took a large lump sum tax free to pay off mortgage. 
 

So to pay in I would also need to withdraw. I think ? 

5 hours ago, Spider said:

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.

The £40k is not as relevant as the £1m increase. It sounds crazy but a £1m pot is not only for the highest earners. 

5 minutes ago, Ani said:

My income is currently all from my Pension. I take £12700 tax allowance and then top up with whatever I need without going above basic rate tax. Plus the 25% tax free. Although to watch that as I took a large lump sum tax free to pay off mortgage. 
 

So to pay in I would also need to withdraw. I think ? 

Don’t think so

2 hours 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 it's done to boost my state pension when/if I get to 67? Or have I got this all arse about face?

This relates to private pensions. If you get to say 55 and take money out of your Pension you were capped at £3600 in terms of how much you can pay into a Pension. So if you do keep working it restricts how much you pay tax free into your pension, remember this includes you employers contribution. Increasing the amount removes a barrier to the over 55s going back to work. 

2 minutes ago, globaldiver said:

Don’t think so

I mean I do not have any other money to pay in, so I need to take out of Pension to have any money. 

7 hours ago, Not in Crawley said:

The childcare thing will be huge for many.

Theres not the places available though

4 minutes ago, Casino said:

Theres not the places available though

I notice they’ve made it kick in just about the time Labour will probably come to power.

Probably just a coincidence 

7 minutes ago, Casino said:

Theres not the places available though

Be helpful if nurseries paid a proper wage to the staff that might attract more into the sector .… you get more working at MacDonald’s. 

Edited March 15, 20233 yr by Mounts Kipper

It feels to me that the beneficiaries are going to be folk already paying 4k a month

17 minutes ago, Mounts Kipper said:

Be helpful if nurseries paid a proper wage to the staff that might attract more into the sector .… you get more working at MacDonald’s. 

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?

42 minutes ago, Ani said:

I mean I do not have any other money to pay in, so I need to take out of Pension to have any money. 

Well, actually, there is a “recycling” rule. I’ll find it and add any narrative. 

40 minutes ago, Ani said:

This relates to private pensions. If you get to say 55 and take money out of your Pension you were capped at £3600 in terms of how much you can pay into a Pension. So if you do keep working it restricts how much you pay tax free into your pension, remember this includes you employers contribution. Increasing the amount removes a barrier to the over 55s going back to work. 

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? 🤔 

7 minutes ago, globaldiver said:

Well, actually, there is a “recycling” rule. I’ll find it and add any narrative. 

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm133810
 

so you can take out £2,880 and then put it back in, becoming £3,600. Be careful, though.

8 minutes 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? 🤔 

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.

15 minutes ago, Casino said:

It feels to me that the beneficiaries are going to be folk already paying 4k a month

If we retain more doctors, which was where the pressure came from, we all are potential winners, I think you’ll agree.

13 minutes ago, globaldiver said:

If we retain more doctors, which was where the pressure came from, we all are potential winners, I think you’ll agree.

Sorry, im one that has previously criticised the limit so yes, im pleased. Not sure id have opened it up beyond sectors where its an issue, mind

 

My comment you quoted was on child care

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.