What does the Chancellors pension revolution mean for us?
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Pensions now look more attractive than ISAs for many people. You only have to do the figures to see that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Here's a deeply cynical thought. I wonder how long it will be before people with Public Sector DB schemes start complaining that it isn't fair that private sector people with DC schemes can take their money however they like, but they are stuck with having to take a regular income? (probably already happening) But will the govt encourage those complaints before 'bowing to popular opinion' and introducing DC schemes to the public sector? Now that would be sneaky.0
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My wife pays no income tax, she can pay into a pension, automatically get an extra 25% and withdraw the money pretty quickly during retirement and not pay any income tax on it. Basically 25% extra money for free.
If you take an annuity, as at present, you are robbed blind ....and if you go for drawdown you are in the lap of the gods.
These proposals are a liberation, and just may win the tories the next election.
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I printed out and posted the bit of the Chancellor's budget speech that most applies to me because I just couldn't believe it - all those years of people being forced to buy an annuity and GAD rates and drip feeding - what happens now if I blow the lot and then look for pension credit - surely I will be penalised .......he can't possibly really trust us with our own pensions?????
Was he on something?
Many people don't even bother to save. Which is even more of a concern than those that blow the lot. This is an incentive to save in a pension. The downside is of course you cannot touch it until a given age. However that's the positive thing. As older people are less likely to blow the lot.0 -
I haven't mentioned gold, it is however one of the long term savings vehicles that will have to be given due consideration when looking at financing retirement.
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but you will mention it, soon I am sure )oh wait you just did lol)
We have missed you here int he last 2 years when gold was going down down down.0 -
Wrong, no such thing as free money. If you take cash, then under the new proposals tax will be deducted.
If you take an annuity, as at present, you are robbed blind ....and if you go for drawdown you are in the lap of the gods.
These proposals are a liberation, and just may win the tories the next election.
..._
All the pot will be withdrawn using the personal tax allowance so NO TAX.0 -
Wrong, no such thing as free money. If you take cash, then under the new proposals tax will be deducted.
If you take an annuity, as at present, you are robbed blind ....and if you go for drawdown you are in the lap of the gods.
These proposals are a liberation, and just may win the tories the next election.
..._
He's already said his wife doesn't pay income tax. Under the new proposals you get taxed AT YOUR MARGINAL RATE which is zero in this case. It therefore IS free money.0 -
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...... I wonder how long it will be before people with Public Sector DB schemes start complaining that it isn't fair that private sector people with DC schemes can take their money however they like, but they are stuck with having to take a regular income?.......
I suspect it will be offered in one form or another. I don't think I would have taken my *DC, or LG final salary any other way, but who knows.
Edit: That should be DB
Be carefull of what you talk of. :cool:
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