Telegraph - 25% Under threat.

gadgetmind

I'm 55 in four years time and fully expect that the 25% tax free will be capped, shackled, hamstrung or generally rendered of far less value by then. Let's face it, the relentless attack on personal pensions is starting to run out of easy targets so they will start needing to take a pop at the big ones fairly soon.

grey_gym_sock

i hope you will be able to think of something to do with the extra money you'll have if it doesn't happen

yangptangkipperbang

The title of the thread is as misleading as the oft repeated story in the Telegraph !

Tom2023

There is a pension think tank, I can't remember its name, but they reckon 75% of pensioners get less than £30k TFLS so restricting the TFLS to £30k wouldn't affect too many people.

While I can't see George Osborne upsetting wealthy pensioners at this stage of this government I wouldn't put anything past the next Labour chancellor.

I am not taking any chances. I am taking my pension in August 2015. I'm going to take a 20% hit but the alternative is worse.

System

kidmugsy wrote: »

Perhaps the clue is in the name?

Could well be. They always change the names of things when they want to hide something.
Note the proposal to change "National Insurance" to "Employment Tax" ?
That means they want to stop people thinking of it as contributions towards future entitlements, but just another tax which someone will be able to "merge" and then increase.

They'll be changing the name "pensions" next, probably to "targetted old age support allowance"

grey_gym_sock

there are so many things that could adversely affect any of our finances - this 1 isn't very likely - why focus on it?

of course, it's a good idea to build some room for the unexpected into your retirement planning. and that helps with any adverse events, without needing to predict exactly what they are.

there is also little downside it taking the 25% lump sum as soon as you can, just in case. i'll probably do that, too.

gadgetmind

Tom2023 wrote: »

so restricting the TFLS to £30k wouldn't affect too many people.

Perhaps not, but those it would effect would have their retirement plans blown to tatters.

And once the principle was established, that £30k would be reduced every year, little by little, until finally it was £0.

grey_gym_sock

there is no war on pensions. you're just imagining it.

tony4147

I certainly can't see this Government or Labour leaving the TFLS alone.

There may have been scaremongers over the years, but the Country has a massive deficit and raising costs due to people living longer and requiring care over a longer period.
I see it as rich pickings for whoever is in power, none of the parties can be trusted to leave well alone!!
If the TFLS is changed then it will be another nail in the coffin for pensions, and won't encourage people to save into a pension.

grey_gym_sock

but why the TFLS? there are so many possible ways to raise taxes or cut spending.

and the government do want to encourage ppl to put money in pensions (if only so they don't have to pay them benefits when they're pensioners).