Protecting pensions from politicians - or preparing for a Labour coalition

michaels

It is not hard to remember Gordon Brown's first tax raid - his pension tax was one of the big reason that final salary pensions were stopped and many existing schemes are underfunded.

I can't see the much further left Momentum crew not planning something much more draconian - especially as higher taxes for top earners would otherwise see even more incentives for income diversion into pensions. And of course his backers in the public sector unions are protected with the only remaining final salary schemes so a win win for the union barons.

So highly likely is a removal of higher rate tax relief
Also likely is a reduction in the lifetime allowance and no indexation

What else?
The high annual isa allowance could be cut (ordinary people can't save 20k pa) and the lifetime isa helping those who can save doesn't really fit with Labour values.

And what about the tax free lump sum, doesn't seem very progressive so could it he stopped altogether or perhaps capped at say 50k

And if things go badly weong how about the Hungarian example where private pension pots were 'nationalised' i.e. confiscated.

So what is the answer - stuff isas now? Bitcoin and physical gold?!

realaledrinker

There again, all that lovely lolly that you have accumulated will go towards your care home fees, other than a paltry £100K. Who's laffin now?

michaels

realaledrinker wrote: »

There again, all that lovely lolly that you have accumulated will go towards your care home fees, other than a paltry £100K. Who's laffin now?

You are right of course. Might as well spend it as you earn it on 'hos and blow and then other people's kids and grand kids will support you post retirement.

alewin

realaledrinker wrote: »

There again, all that lovely lolly that you have accumulated will go towards your care home fees, other than a paltry £100K. Who's laffin now?

At the moment you can only keep £23,250 of your savings to pass on if you are in a Care Home.
If the Conservatives win again it will rise to £100K, so hopefully I will be laughing.

seven-day-weekend

If Labour win, I will ask my financial advisor to organise my assets into an account on the Isle of Man.

I'm already drawing Pensions - State and LGPS.

Linton

alewin wrote: »

At the moment you can only keep £23,250 of your savings to pass on if you are in a Care Home.
If the Conservatives win again it will rise to £100K, so hopefully I will be laughing.

...... contemplating life as a "benefits scrounger" whilst waiting for your overworked minimum wage carer to change your pad before settling you down in front of daytime TV.

hyubh

michaels wrote: »

It is not hard to remember Gordon Brown's first tax raid - his pension tax was one of the big reason that final salary pensions were stopped and many existing schemes are underfunded.

Er, no it wasn't.

So what is the answer - stuff isas now? Bitcoin and physical gold?!

Hopefully we have an entertaining thread on our hands!

hyubh

seven-day-weekend wrote: »

If Labour win, I will ask my financial advisor to organise my assets into an account on the Isle of Man.

I'm already drawing Pensions - State and LGPS.

Dare I ask, where do you think the money for state and LGPS pensions either directly or ultimately comes from...?

WobblyDog

I reckon the current salary sacrifice arrangements for pension contributions would be an obvious target for any new government looking to increase taxes. I think it's also the only useful tax-reduction technique available to most middle-income single people, who I fear would be targeted by a future labour government anyway.

Keep_pedalling

seven-day-weekend wrote: »

If Labour win, I will ask my financial advisor to organise my assets into an account on the Isle of Man.

I'm already drawing Pensions - State and LGPS.

I thought the idea of having an IFA was for them to give you advice, so hopefully they will tell you not to be so silly.

Unless you are going to park yourself offshore as well, you are not going to benefit from moving you assets offshore, and unless you have everything in ISAs you could find yourself with a nice big CGT bill when you dispose of your UK assets.

seven-day-weekend

hyubh wrote: »

Dare I ask, where do you think the money for state and LGPS pensions either directly or ultimately comes from...?

I know where it comes from. I am well aware that all my income, and my husband's (State Pension and Teachers' Pension) comes from State Coffers - and indirectly from the British taxpayer (which we both are, on income).