Budget

talexuser

lvader wrote: »

The pension changes are huge, a complete seachange.

But I wasn't talking about the whole changes, specifically the pensioners' bond and how much that was actually worth, compared with how it was presented as some kind of saviour for 5 years of low rates on tv. You implied the figures were incorrect, I'd like to understand how. The other changes to ISA limits are worthwhile as I previously said. The pot reform is again worthwhile as long as everybody doesn't blow the lot and then relies on state handouts when no savings are left.

Glen_Clark

Murphybear wrote: »

.......... Would anyone care to hazard a guess as to the logic of this?

Oh thats an easy one. The logic, as always with Osborne, is political. The over 65's are more likely to vote, so politicians always fall over each other to offer them a special sop, bus passes (as if they need it more than people who have to get to work), free prescriptions, fuel allowance, etc etc. No political party dare offend the grey vote, but they have presented so many gimmicks they must struggle to conjure up any more. Osborne must be hoping they are mostly senile so can't work out how little some of these things are really worth.

grizzly1911

talexuser wrote: »

The pot reform is again worthwhile as long as everybody doesn't blow the lot and then relies on state handouts when no savings are left.

A fair bit was said yesterday on the security the new fixed pension payment will be, the triple lock and the fact it will remove the need for a means tested MPG.

How will this affect all the other potential benefits, housing benefit, free dental/optical etc.

Whilst those with significant pots are unlikely to splurge their planning for a comfortable retirement for those with more marginal pots there may be a much greater temptation to just have a few good years rather than eek it out.

lvader

talexuser wrote: »

But I wasn't talking about the whole changes, specifically the pensioners' bond and how much that was actually worth, compared with how it was presented as some kind of saviour for 5 years of low rates on tv. You implied the figures were incorrect, I'd like to understand how. The other changes to ISA limits are worthwhile as I previously said. The pot reform is again worthwhile as long as everybody doesn't blow the lot and then relies on state handouts when no savings are left.

You implied that the budget wasn't a big deal for pensioners, it is. You were just concentrating on a few minor points and seemed to have completely missed the huge elephant sitting in the room.

Yes people could take all their money out, spend it and rely on state handout (good luck with that), just as people can today not bother saving for a pension and rely on state handouts.

talexuser

lvader wrote: »

You implied that the budget wasn't a big deal for pensioners, it is.

Never said anything of the sort. My post was about the pensioner bond which an existing pensioner on TV news was applauding as a great saviour for pensioners who have suffered from low savings rates for so long.

Since they were an existing pensioner the annuity rules had no significance for them now and the whole thing was being reported before anyone sensible had even worked out what the bonds were actually going to be worth, which is not a lot extra, and no kind of recompense for what savers have lost to save the economy the past 6 years.

innovate

I agree with lvader. Your post is headed "Budget" and then you proceed to pick a random detail to pour scorn on it.

grizzly1911

If individuals do spend their pension pot or give it away and then need a care home how will that be handled under the deprivation of assets rules?

Appreciate gifts should be picked up under IHT and that marginal tax rates will apply to withdrawals.

Archi_Bald

grizzly1911 wrote: »

If individuals do spend their pension pot or give it away and then need a care home how will that be handled under the deprivation of assets rules?

It would take a severely deranged or unfortunate person who invests for their retirement all their life, then blows it all so they can claim benefits. However, if they do end up destitute at some stage in their lives, they will have access to state / local authority help under exactly the same rules as those people who never bothered making any provision for their old age.

Rollinghome

talexuser wrote: »

The pensioner bond (NS&I) will only be available from next January, be 4% on a 3 year fix, max £10000, with withdrawal of the bonds as soon as they get 10 billion in.

From the budget speech:
"So we will launch the new Pensioner Bond paying market leading rates. It will be issued by National Savings and Investments, open to everyone aged 65 or over, and available from January next year. The exact rates will be set in the autumn, to ensure the best possible offer - but our assumption is 2.8% for a one year bond and 4% on a three year bond. "

So not quite as widely reported as we don't yet know what the rate be and, as economists are predicting rates to start rising in the first quarter of next year, locking into a four year bond may not be such a smart idea. The interest will be subject to tax unlike index-linked bonds..

As always the devil will be in the detail and only then will oldies know if it's the answer to their prayers.

lvader

grizzly1911 wrote: »

If individuals do spend their pension pot or give it away and then need a care home how will that be handled under the deprivation of assets rules?

Appreciate gifts should be picked up under IHT and that marginal tax rates will apply to withdrawals.

Deprivation of assets doesn't cover regular spending on one selves, i.e. they can't stop people buying cars, holidays, having fun money.