31, no pension and concerned

atush

And if you do a search on this forum, people said it would be withdrawn in every past year for the last 5 or more. Now people are saying the upper limit on TR may be reduced to 30% While this could happen, I think it highly unlikely the 25% TFLS will be removed.

Why? because whoever did it, would never be re elected. After all, there are a lot of people who are retiring and they all vote. Second, you will very soon have a much larger group of people with pensions due to auto enrollment- and all these people would be enraged as well.

Then, if you say a govt can do ANYTHING, well sure. They could also repeal ISAs and make them taxable. Or cut or even remove the state pension. I say these things wont happen either. For the same reason, electoral suicide. So your advice to stick with a S&S isa due to a possible change is just silly.


You CANNOT do anything but work within the current rules, as no one has a crystal ball.

jamesd

S&S ISA is the better short term option because several political parties have indicated an intention to change the basic rate tax relief to 30%. So a wait until after the election seems sensible.

Beyond that, the 25% tax free lump sum delivers a gain of a bit over 6% on the money that isn't available in an ISA, assuming the same tax rates when paying in and taking out.

kidmugsy

worried_jim wrote: »

Don't wait till 2018, get a private plan now.

Even better, hold back a few months and see whether the new government decides to replace 20% tax relief by 30% (or even 33%). Meantime put the money into an interest-bearing current account while you wait.

princeofpounds

S&S ISA is the better short term option because several political parties have indicated an intention to change the basic rate tax relief to 30%. So a wait until after the election seems sensible.

Agree with this. Though I doubt the change will happen right after the election.

By the way, for all the good advice you are going to get here, frankly nothing matters more for you right now than boosting that income.