Well done George dropping pension changes

chucknorris

wotsthat wrote: »

It's shafted the annual pre-budget fear marketing of the pension companies.

It's around about now I get invited to fill my boots because tax relief is going to be scrapped, contribution limits tightened etc.

Yeah, me too, but by now, probably just like yourself, I have already invested all that I can do this tax year anyway.

wotsthat

chucknorris wrote: »

Yeah, me too, but by now, probably just like yourself, I have already invested all that I can do this tax year anyway.

I wish. If the change had happened I would've borrowed to top up and fill some carry forward too.

chucknorris

wotsthat wrote: »

I wish. If the change had happened I would've borrowed to top up and fill some carry forward too.

It is probably much more urgent for me anyway, as I feel that I am getting very close to retirement, at which point I will have no more 'relevant earnings', so I'll be reduced to only £3.6k gross per annum.

michaels

I still think there might be something nasty on Sal Sac up his sleeve....

wotsthat

chucknorris wrote: »

It is probably much more urgent for me anyway, as I feel that I am getting very close to retirement, at which point I will have no more 'relevant earnings', so I'll be reduced to only £3.6k gross per annum.

The problem* is I'd be at risk of exceeding lifetime allowances. At current contributions and with a fair wind I'll be there in the next 7 - 10 years.

I'm not far off maxing out now but it would just impact too much on current spending. I've extended out mortgages to retirement dates but, despite loving the tax relief, can't quite bring myself to go full IO and put the capital in the sipp.

* Of course that will be a nice problem to have.

chucknorris

wotsthat wrote: »

The problem* is I'd be at risk of exceeding lifetime allowances. At current contributions and with a fair wind I'll be there in the next 7 - 10 years.

I'm not far off maxing out now but it would just impact too much on current spending. I've extended out mortgages to retirement dates but, despite loving the tax relief, can't quite bring myself to go full IO and put the capital in the sipp.

* Of course that will be a nice problem to have.

I started too late with pensions, if I worked until 66 (my state pension age) I might have just made the max lifetime allowance. I should have started earlier, so I messed up:

iantojones40 wrote: »

Hearty congratulations to all the over leveraged, heavily indebted, financially incompetent buffoons... you've won.

But I haven't done that badly for a financially incompetent buffoon. But it is looking increasingly unlikely that I am going to work for much longer, going by my wife's comments about her own retirement. There really isn't any point in continuing to work myself, if she retires, because we could then go to Spain/Algarve during the winter months, and that would just be too good to turn my nose up at.

wotsthat

chucknorris wrote: »

There really isn't any point in continuing to work myself, if she retires, because we could then go to Spain/Algarve during the winter months, and that would just be too good to turn my nose up at.

Would you drive to the Algarve?

I've done it before. It's a long long way but doable in two days.

chucknorris

wotsthat wrote: »

Would you drive to the Algarve?

I've done it before. It's a long long way but doable in two days.

Yes, but via taking the car ferry to Northern Spain, we can't fly because of our dog. We have done it before (to the Costa Del Sol), great for me, but my wife gets slightly sea sick, but it isn't too bad for her.

wotsthat

chucknorris wrote: »

Yes, but via taking the car ferry to Northern Spain, we can't fly because of our dog. We have done it before (to the Costa Del Sol), great for me, but my wife gets slightly sea sick, but it isn't too bad for her.

I'd assumed it would just be you and the dog with your wife flying!

I drove down with my son and put up the tent. The next day we drove to the airport to collect wife, daughter and MIL.

Jon_B_2

I agree, a good decision.

I don't understand the problem with the current system. A 40% taxpayer gets more pension relief, but also by definition they will be paying more tax than a basic rate taxpayer.

Besides, it's so easy to fall into the 40% tax bracket these days it's not like it is increased tax relief for the wealthy.