Ending of age allowance for pensioners in budget

Rollinghome

The tax system is to be "simplified" by phasing out the age allowance for over 65s.

So when personal allowances go up for those under 65 in April, the age allowance will be frozen and, as there will not be an increase in line with inflation the following year, cut in real terms. It will be frozen until it reaches the same level as the basic single person's allowance and then disappear completely.

Ah well, someone had to pay for knocking quarter of a million off Bob Diamond's income tax bill.

NAR

I think this is very sad that the extra allowance is disappearing and even sadder that it is the Tories that are doing it to us. You scrimp and save for 40 years, earn a reasonable pension to live on, only to find it is going to be eroded more quickly.

A lot of pensioner votes being lost by the Tories methinks! :mad:

Rollinghome

Seems especially hard when many pensioners are paying tax on 3% or less interest on their savings as if it were a gain, whereas with RPI still at 3.7% there is no gain, there's a loss.

horsechestnut

I do feel so sad that after working since I was 17 years of age (many of my age group have actually worked since they were 15), paying into a very modest pension and scrimping and saving to do so, that I will see it's value reduced even further. What a dreadful way for a country to say "Thank You" to the people who have put in over forty years hard work.
That is one way to lose the next election!!!

pineapple

Rollinghome wrote: »

The tax system is to be "simplified" by phasing out the age allowance for over 65s.

So when personal allowances go up for those under 65 in April, the age allowance will be frozen and, as there will not be an increase in line with inflation the following year, cut in real terms. It will be frozen until it reaches the same level as the basic single person's allowance and then disappear completely.

Ah well, someone had to pay for knocking quarter of a million off Bob Diamond's income tax bill.

As I understand it, it's till their income gets in line with the new flat rate pension. But heck what do I know. I would be interested to know how many will benefit from the £140 pension as I am one of many who get a supplementary top up anyway on top of the basic rate. Would they like to pay me £140 plus the supplementary (which I worked for)? No? I didn't think so! It's give with one hand, take with another. But they are taking more than giving. Let's not forget the savings made by simplifying the system. Meanwhile it's outrageous that they have reduced the top rate of tax. I don't buy it that they are going to counter this by going after tax avoidance. They would first have to close a lot of (at the moment) perfectly legal tax avoidance measures.
I would like to know when this tax cut applies from. After all, we are having to wait a year till the new personal allowance kicks in.
As for the fuel tax still due in August, this will affect both personal motoring and the price of goods.

Rollinghome

From the budget document:

To simplify the tax system while diversifying the tax base and improving medium-term sustainability the Government will: move towards a simpler, single personal allowance regardless of age by freezing existing age-related allowances (ARAs) from 6 April 2013 at their 2012–13 levels (£10,500 for those born between 6 April 1938 and 5 April 1948, and £10,660 for those born before 6 April 1938) until they align with the personal allowance. From April 2013, ARAs will no longer be available, except to those born on or before 5 April 1948. The higher ARA will only be available to those born on or before 5 April 1938. These changes will simplify the system and reduce the number of pensioners in Self Assessment;

See, they're just doing it for our own good.

McKneff

horsechestnut wrote: »

I do feel so sad that after working since I was 17 years of age (many of my age group have actually worked since they were 15), paying into a very modest pension and scrimping and saving to do so, that I will see it's value reduced even further. What a dreadful way for a country to say "Thank You" to the people who have put in over forty years hard work.
That is one way to lose the next election!!!

Here, here:T

scotsbob

I do not remember seeing anything about this in either the Tory or Liberal party manifestos last year did I miss something?

DiggerUK

Mrs. D. has already been stiffed over due to the change in when women can collect their state pension.
I just missed being clobbered with the upping of the state pension age, to 666, in November 2018, by a matter of months.
Now it seems more than likely that I will have to expect an extension to this.
They are introducing..... "An automatic review of state pension age to ensure it keeps pace with increasing life spans"
Am I the only one who is on the verge of losing the will to live.
..._

clemmatis

pineapple wrote: »

As I understand it, it's till their income gets in line with the new flat rate pension. But heck what do I know. I would be interested to know how many will benefit from the £140 pension as I am one of many who get a supplementary top up anyway on top of the basic rate. Would they like to pay me £140 plus the supplementary (which I worked for)? No? I didn't think so! It's give with one hand, take with another. But they are taking more than giving. Let's not forget the savings made by simplifying the system. Meanwhile it's outrageous that they have reduced the top rate of tax. I don't buy it that they are going to counter this by going after tax avoidance. They would first have to close a lot of (at the moment) perfectly legal tax avoidance measures.
I would like to know when this tax cut applies from. After all, we are having to wait a year till the new personal allowance kicks in.
As for the fuel tax still due in August, this will affect both personal motoring and the price of goods.

I think the £140 is only for people who retire after it comes in. So, I'll still get less than that, and you won't get any more than you do now.

pineapple

DiggerUK wrote: »

I just missed being clobbered with the upping of the state pension age, to 666, in November 2018, by a matter of months.

I think you stuck an extra 6 on there
I managed to collect my pension at the age of 60 plus a few months so consider myself lucky.
One thing that has annoyed me - Channel 4 News in it's headlines announced that 'middle income' pensioners had been raided. Scuse me? The extra personal allowance is being frozen out for age 65 plus - some of those affected may just be on a state pension. No 'middle income' about it! Sheesh.... :mad:
The other thing is there has been more talk on linking pension age to life expectancy. So who knows whether people will have to work even longer. Ironically those who need the income most and who are likely to be in poorer health will have to keep on grafting.
And what about our state of health during our latter years? I took the hit at 60 and left my job because I didn't feel able to do my job any longer. But at least I got a pension. And what is a man to do if say he has been in a hard physical job all his life...? Is he expected to continue to nigh on 70? How much chance does he have of finding something else? Ghrr...