Realised Budget changes

berbatov10

I realised today how much the govt. are taking from people. I m a serving Police Officer. I know there are many who think we are under worked and overpaid however today I realised the extent of the govt. money grab and I am stunned. The change in the last budget mean ANYONE with a pension pot over £1,000,000 who retires afterApril 1st will lose anything over that (sounds a lot I know but there are many with bigger). A colleague who is set to retire in May is losing £250,000from his pot, I am stunned

[Deleted User]

so you have a colleague with a pot worth £1.25 million?

kidmugsy

berbatov10 wrote: »

The change in the last budget mean ANYONE with a pension pot over £1,000,000 who retires afterApril 1st will lose anything over that

That's not right. The changes were, in my view, ill-judged, but they do not amount to confiscation of everything over £1M.

Daniel54

berbatov10 wrote: »

ANYONE with a pension pot over £1,000,000 who retires afterApril 1st will lose anything over that (sounds a lot I know but there are many with bigger). A colleague who is set to retire in May is losing £250,000from his pot, I am stunned

The tax surcharge for pension amounts over the LTA is 25% ( not 100%.) income taken from the remaining amount over the LTA limit is taxed as income at the applicable rate for the receiver of the pension .

The Government has indicated that it will be possible to take fixed protection at the current LTA level of £1.25m ,but this has not yet been ratified.

If your colleague is losing £250k,that suggests a total pension value of £2m ??

Personally I think the reduction in LTA is thoroughly misguided,but your understanding of its effect seems to be fundamentally incorrect

dunstonh

I too feel the lifetiime allowance is misguided. it seems wrong to have a limit on contributions with the annual allowance and then a limit on total. it is effectively a tax on growth.

However, it is difficult to have sympathy with a police officer feeling hard done by this. After all, they havent paid much into it themselves and the average consumer would need to have a pension pot close to £2mill to suffer that.

berbatov10

Not withstanding view about the 'Old bill' (most of us are humans too!) I have sacrificed a higher paid job to do a job I believe is ultimately helping people. Just trying to work out the implications

berbatov10

PS I ask for a colleague as I dont retire for sometime yet!!

tony4147

berbatov10 wrote: »

Not withstanding view about the 'Old bill' (most of us are humans too!) I have sacrificed a higher paid job to do a job I believe is ultimately helping people. Just trying to work out the implications

Sorry, but I can't have any sympathy, I'm pvt sector and a lot of people don't earn what a Policeman earns, I have paid in thousands over the years and I will be very lucky to get half of the figures you are suggesting ...............it's a problem I wouldn't mind having................. and the other side is mine been DC I'm also at the mercy of stock markets etc.

berbatov10

Tony that's fine I don't have an issue with that. I in turn have a brother in law who earns an eye watering salary and matching pension with Barclays, thats how life is

dunstonh

berbatov10, you have been around these boards long enough and may have spotted past threads in the pension section from police officers. Most have taken the "hard done by" posting style and how disgraceful the changes are etc.

Whilst your post was not in that style, you must forgive us for what initially looked like another whining policeman with a £2 million pension fund feeling hard done by.

atush

No one here (well at least not me) thinks you are underworked and over paid.

I am however very concerned as to your personal job performance as you have gotten SO MANY facts wrong in your OP/diatribe.

I certainly hope your written work product is more factual and precise. You dont want me on your jury as I like to see concrete facts, not fiction. So would vote against the prosecution in this case.

I guess the anti govt bias in the police is stronger than I thought.