Lump sum rumours!

paparossco

dunstonh wrote: »

A month doesnt seem to go by over the years without someone in the NHS posting about these rumours.

Perhaps a 'sticky' at the start of the posts might help? Along the lines of the 'Can I cash in my pension?'. It does seem to be a regular question.

Tom2023

BobQ wrote: »

Where is your evidence to support this randomthought?

The Tories are very dependent on the grey vote. The last thing a Tory chancellor wants to do is upset pensioners.

The same can not be said for Labour or the Lib Dems who have both floated the idea of means testing some OAP perks.

Ed Miliband & Labour are all about wealth redistribution. They are always looking for new ways to tax people and the Pensions Policy Institute reckons that restricting tax relief on pension lump sums would bring in £4billion a year.

Just google wealthy pensioners Labour or wealthy pensioners Lib Dems.

They have their eyes on your money and if they get in next year then they might get their hands on your money.

BobQ wrote: »

The changes in the last budget are generally popularand designed to win votes. Whether they are a good idea time will tell.Responsible behaviour will mean the changes are positive, Irresponsiblebehaviour will mean people use the funds early and so run out of money earlierand rely on benefits. In that sense its a bit of a gamble since nobody knowshow it will affect people's behaviour. But if there is too much irresponsiblebehaviour any Government will have to act and playing with the tax regime isone way of doing this.

Why would people who have taken the trouble to save for their retirement suddenly become irresponsible?

BobQ

le_loup wrote: »

Just been appointed to work in Central Office?
Good luck in your new career.

I can see why le loup thinks this. The idea that this is party political and that the Tories are any better than other parties is fanciful.

Tom2023 wrote: »

The Tories are very dependent on the grey vote. The last thing a Tory chancellor wants to do is upset pensioners.

True of all parties.

The same can not be said for Labour or the Lib Dems who have both floated the idea of means testing some OAP perks.

http://www.telegraph.co.uk/finance/personalfinance/pensions/10551866/Winter-fuel-payments-under-threat-for-wealthy-pensioners.html

It can be said of all parties.

Ed Miliband & Labour are all about wealth redistribution. They are always looking for new ways to tax people and the Pensions Policy Institute reckons that restricting tax relief on pension lump sums would bring in £4billion a year.

The PPI is not some reactionary left wing think tank. It is funded mainly by the pensions industry (the likes of the Prudential and Axa).

The idea would only be redistributive if people insisted on taking out more than the tax free some. As this Government points out in its Budget Consultative Paper, all the time people benefit from a tax regime that confers benefits from tax relief on contributions, the Government is entitled to apply rules that limit what you can do in spending the money in the pot. Most people would be unaffected by the reducing the size of the tax free lump sum. Those that want to draw more will have to pay tax on the excess. But they can avoid that by not drawing it out in the first place. This will happen under any Government because the Treasury want it to happen.

The point is that while the Government wants to appear to confer freedoms to use a pension, they also want to stop people spending their pension pots too quickly. Remember this deregulation will make it far easier to make you use the pension to fund your elderly care.

Why would people who have taken the trouble to save for their retirement suddenly become irresponsible?

Most will not but there will be some who do.

This deregulation of pension assets will have unforeseen consequences beyond the next election.

le_loup

BobQ wrote: »

I can see why le loup thinks this. The idea that this is party political and that the Tories are any better than other parties is fanciful.

Apparently, I didn't think this at all. The gauleiters have removed my comment! I think Winston Smith spent most of his waking hours doing the same.


Originally Posted by le loup
Just been appointed to work in Central Office?
Good luck in your new career.

atush

Tom2023 wrote: »

Why would people who have taken the trouble to save for their retirement suddenly become irresponsible?

I guess you haven't been reading the Can I Cash in my Pension Threads then?

Annie1960

This rumour has been around for years. If the tax status of pension lump sums does change, this will need to go through the Finance Bill (otherwise known as The Budget) and will be announced by whoever is Chancellor of the Exchequer at the time.

BobQ

le_loup wrote: »

Apparently, I didn't think this at all. The gauleiters have removed my comment! I think Winston Smith spent most of his waking hours doing the same.


]

Are you sure?

“Does Big Brother exist?"
"Of course he exists. The Party exists. Big Brother is the embodiment of the Party."
"Does he exist in the same way as I exist?"
"You do not exist.”

le_loup

Maybe Tom2023 is actually Parsons?


"Parsons was Winston's fellow employee at the Ministry of Truth. He was a fattish but active man of paralyzing stupidity, a mass of imbecile enthusiasms-one of those completely unquestioning, devoted drudges on whom, more even than on the thought police, the stability of the Party depended."

lvader

BobQ wrote: »

, Irresponsible behaviour will mean people use the funds early and so run out of money earlier and rely on benefits.

Irresponsible people wouldn't have saved in the first place, if they somehow become irresponsible later on in life they should still have the same possibilities to rely on the state as people that have been irresponsible all their life.

atush

Now that there is auto enrollment, this could change.