All that planning -wasted

StevieJ

Investement trusts, Isas etc, attempts at planning income streams on retirement to max out age allowance, wiped out in one go. Next to get whittled away will be state pension for those who have saved for retirement, and how long before the govt insist that pensions aquire new govt bond issues as part of their portfoliio. I think we need a long term level playing field so people can plan well ahead for retirement, you are not going to get it though.

innovate

I got a spare pack of razor blades if you need them

opinions4u

The various age allowances were always an oddity. No obvious reasons why pensioners should have more tax free income than workers.

The logic and timing makes sense. As all of us benefit from higher personal allowances (increasing well ahead of RPI or CPI) taking the opportunity to freeze the age allowances means nobody will be worse off as a result of it.

The case around 150,000 tax returns caused by age allowances also stacks up.

It might not be a vote winner, but he could have been really brave and said no more free TV licences, free bus and coach travel and winter fuel allowances. Either across the board or fall all those soon to be eligible.

I'll never make it in politics. But bribing oldies for their votes while running the country in to the ground isn't exactly sensible.

ffacoffipawb

opinions4u wrote: »

I'll never make it in politics. But bribing oldies for their votes while running the country in to the ground in'ts exactly sensible.

No, but the policy succeeded in gaining / retaining power in 1997, 2001 and 2005.

Aegis

How is it wasted? You're still going to get an income generated in a tax efficient environment with no concerns for capital gains tax. You should acknowledge that you've made a lot of progress towards providing an additional source of income in retirement and you should be happy that ISAs haven't changed.

laurel7172

I'm pretty much expecting NI and income tax to be combined by the time I retire. Removing the age-related allowance will be peanuts compared to that. But a bigger personal allowance AND a lower tax rate (no NI) has always been generous...probably too generous to last.

Eco_Miser

StevieJ wrote: »

Investement trusts, Isas etc, attempts at planning income streams on retirement to max out age allowance, wiped out in one go.

But you are not losing your age allowance. Everybody else is having their allowance raised to match it. So all your planning is not wasted.
ETA: Unless you hit 65 in the 2-3 years between the start of the scheme, and when the standard allowance catches up to the age allowance.

StevieJ

ffacoffipawb wrote: »

No, but the policy succeeded in gaining / retaining power in 1997, 2001 and 2005.

And a loss in 2015 as Labour raise the spectre of NI charge on pensioners. They say they want to simplify it, would that be just like the simplification of age allowance

We are also pressing forward with our ambition to integrate the operation of income tax and national insurance I announced at last year's Budget - so we don't ask businesses to run two different payroll tax administrations.

StevieJ

Eco_Miser wrote: »

But you are not losing your age allowance. Everybody else is having their allowance raised to match it. So all your planning is not wasted.
ETA: Unless you hit 65 in the 2-3 years between the start of the scheme, and when the standard allowance catches up to the age allowance.

What planet are you on? BTW I am not an OAP

Xbigman

When the government decided to put in place a 7k basic state pension you had to wonder how it would be paid for...



X

brasso

[QUOfacoffipawb;51954979]No, but the policy succeeded in gaining / retaining power in 1997, 2001 and 2005.[/QUOTE]

So you think that Blair and New Labour were swept to power, and kept there, by old people?

The evidence, cited in many a news story over the years, points in the other direction. The demographic swing was hugely biased toward the 18-24 age group. Hugely.