Another raid on pensions?

donaldtramp

Yup another raid on working peoples pensions to enable Clown to keep paying bullet proof, guaranteed, retire at 60, public sector pensions.

Got another year of these idiots unfortunately.
Can you imagine the state of the country when they are done?

Just keep borrowing Clown, mortgage us all up for decades and squeeze the very workers who keep Britain afloat. This a recipe for disaster.

Dylanwing

And once again, Public Sector workers are the target! Try looking at all of the pointless computer systems that waste billions and deliver minimal benefit, or tosh like ID cards, or the road pricing scheme that will cost billions to deliver, and millions to run. Or of course, tax evasion/ avoidance. In any case, public sector workers have nothing to do with the topic in question - Why the hell should high earners get a better tax break on pension contributions than ordinary folk? In all honesty, in recent years the higher earners have not done bad with the Wicked Witch favouring them hugely, and Clown using more indirect taxes that affect lower earners more, in proportion to income.
The higher earners (Middle classes) can whinge all they like in the Mail, whether we like it or not taxes have to rise, so do you target the poor sods on minimum wage trying to stay afloat, or those with (in theory) greater disposable income? And if they are so concerned about taxpayers, perhaps they could publish the allegations in Private Eye about a dubious Non-Dom who pays little UK tax - Lord Rothmere, owner of the Daily Mail.
In any case, the high earners should be grateful that this anomoly has been allowed to continue for so long, this should have been sorted years ago.

thriftybabe

donaldtramp wrote: »

Better deal?
What about all the extra tax paid at 40%?

Got there before me! How would everyone feel if we were all to pay basic rate tax?

Dylanwing

Got there before me! How would everyone feel if we were all to pay basic rate tax?

Well, if the tax threshold was raised, certain indirect taxes (Especially Council Tax) incorporated into income tax, and avoidance by the wealthy clamped down on, I would be more than happy.

michaels

I don't see how it is a better deal.

Putting money in a pension means putting aside salary now to receive it later after you stop working.

When you receive it later you pay tax on it.

Removing the releif would result in tax being paid twice - now when the work is done and then a second time when the income is received.

Seems to me that if people are asked to pay tax on their income twice in a pension or once if they take it now they will chose the former. Thus strongly discouraging pension saving - is that what you want to achieve?

Dylanwing wrote: »

Personally, I think that it is long overdue. Can anyone explain why high earners should get a better deal on pension contributions than the ordinary folk?

Generali

I maintain that the thing to look out for is a change in rules regarding risks pension funds can take, thus forcing them to buy Gilts.

vivatifosi

Generali wrote: »

I maintain that the thing to look out for is a change in rules regarding risks pension funds can take, thus forcing them to buy Gilts.

Thanks again for the reminder Gen. Oh please let me go back to the days when being a pension fund trustee was easy. When we didn't need to worry about whether the bank would go under or whether we'd be forced to invest in vehicles not of our choosing. I could of course mention the days when I didn't need to worry about government tinkering but that started before I even became a trustee.

Generali

vivatifosi wrote: »

Thanks again for the reminder Gen. Oh please let me go back to the days when being a pension fund trustee was easy. When we didn't need to worry about whether the bank would go under or whether we'd be forced to invest in vehicles not of our choosing. I could of course mention the days when I didn't need to worry about government tinkering but that started before I even became a trustee.

Well if the rules are changed explicitly then you don't really have too much of a problem as a trustee (AIUI) - you change your investment strategy to comply with the new rules and then the company has to stump up some more cash to make up the resulting shortfall at some point.

I guess the biggest problem is that you have to take a shellacking along the way when you havte to explain that more cash is going to be needed if the fund is going to do what is obliged of it.

It's a tough job though right now. I don't envy you.

vivatifosi

Yep, para 2 is always the tough part, especially if parent co is overseas and doesn't understand the nuances of final salary schemes.