What does the Chancellors pension revolution mean for us?

atush

Well you would be able to take it out,

but you can see surely that others who don't have sufficient retirement income will possibly empty their pensions and spend them quickly? Or more slowly but not slow enough to match their LE?

[Deleted User]

atush wrote: »

Well you would be able to take it out,

but you can see surely that others who don't have sufficient retirement income will possibly empty their pensions and spend them quickly? Or more slowly but not slow enough to match their LE?

of course I see that atush but they will be condemned to live in poverty and hardship in their old age and that will be their own fault if they are so reckless. I am so glad to see that the nanny state has loosened its grip somewhat

kidmugsy

harz99 wrote: »

Interesting idea; love to see some example figures to show whether it would work, how much of your pension pot would be used, and how long it would be before the extra State Pension made up for the loss of capital from pot and lower pension/income from that same pot.

It's easy. Doing the calculation in inflation-adjusted terms, and ignoring the interest forgone on the pension that you might otherwise have drawn earlier (which is reasonable when the base rate is 0.5%p.a.), after the first ten years from restarting the pension you are in profit. So if, say, you are a 65 year old man with a 63 year-old wife, you could live (say) another 16 years after restarting your SRP, then pop your clogs, then the last six years of SRP were pure profit. And then your wife would "inherit" about 90% of that extra pension for another (say) 8 years. More pure profit. The only problem for many people is finding enough to live off while they defer. They may just have been offered the solution.

P.S. The deferment terms are so absurdly expensive for the taxpayer that under the new-style state pensions the reward will be halved.

kidmugsy

nymphalisio wrote: »

What sort of intelligent reply is that???

What sort of unintelligent question was it? You didn't give us a single figure.

kidmugsy

kittie wrote: »

but they will be condemned to live in poverty and hardship in their old age and that will be their own fault if they are so reckless.

Not a chance; a politician will buy their votes by obliging the rest of us to pay for them. That's how the welfare state has operated since its great reform in 1945.

SallyG

Just a creeping doubt about being already in drawdown - they wouldn't be so cruel as to exclude us - new customers only?

kidmugsy

SallyG wrote: »

Just a creeping doubt about being already in drawdown - they wouldn't be so cruel as to exclude us - new customers only?

Not a chance: your vote is wanted too.

atush

The GAD rate is going up by the 27th, isn't it? as a bridge?

lvader

Basically from 2015 people with no other income could take out £10500 (personal allowance) from their pension pot each year and pay no tax?

If so great news and time to overload the wives pension pot!

Triumph13

nymphalisio wrote: »

Quote:

What sort of intelligent reply is that???

Well I liked it!

Problem is that Kidmugsy forgot to adjust for 1 human year being 7 dog years so dogs can draw their pension at nearly 8.

As you're 67 then that means that either (i) you're 9 and a half; or (ii) that isn't actually your picture