Budget Autumn 2017 Pension Tax Relief

stoozie1

marlot wrote: »

You missed the big one. Applying NI to pension income. Or merging NI and income tax, which comes to much the same thing.

If I were chancellor :eek: I would simplify and merge NI and income tax.

The other methods of achieving a rebalance feel like they are all going to cost the treasury more than they will yield/are practically unworkable due to legislative/functional changes needed to achieve them.

Paul_Herring

Anonymous101 wrote: »

This is the most important issue of the whole budget for me.
As a higher rate tax payer aged 36 saving 25% of my annual salary into a pension with the hope of retiring age 55 at the latest my vote will be swayed to either party depending on their stance on this.

Certainly looking on slightly nervously hoping things remain the same.

Be aware that you're unlikely to be able to access your pension at age 55, so may want to look at other savings to bridge that gap if you're not already.

Basically there's still talk of restricting access to private pensions to state pension age minus 10 years.

Older articles:
2014 (58): http://www.telegraph.co.uk/news/10982177/Age-40-No-access-to-pension-until-58.html
2015 (70): http://www.telegraph.co.uk/finance/personalfinance/special-reports/11537512/Cash-in-your-pension-at-55-You-may-have-to-wait-till-70.html
2016 (57): http://citywire.co.uk/new-model-adviser/news/treasury-to-push-on-with-osborne-s-personal-pension-age-rise/a971694
July (58 again): http://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pension-delay-means-millions-must-wait-get-private-pensions/

One of, the no doubt many, threads on here about it: https://forums.moneysavingexpert.com/discussion/5644862

Anonymous101

Paul_Herring wrote: »

Be aware that you're unlikely to be able to access your pension at age 55, so may want to look at other savings to bridge that gap if you're not already.

Basically there's still talk of restricting access to private pensions to state pension age minus 10 years.

Older articles:
2014 (58): http://www.telegraph.co.uk/news/10982177/Age-40-No-access-to-pension-until-58.html
2015 (70): http://www.telegraph.co.uk/finance/personalfinance/special-reports/11537512/Cash-in-your-pension-at-55-You-may-have-to-wait-till-70.html
2016 (57): http://citywire.co.uk/new-model-adviser/news/treasury-to-push-on-with-osborne-s-personal-pension-age-rise/a971694
July (58 again): http://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pension-delay-means-millions-must-wait-get-private-pensions/

One of, the no doubt many, threads on here about it: https://forums.moneysavingexpert.com/discussion/5644862

Thanks for that... I'm always looking to keep up to date with any discussions around this. Obviously this does have huge consequences for anyone wanting to retire early.

I'm taking steps to mitigate the risk of a change impacting on my retirement age however as it stands pensions are by far the most tax efficient way to save for retirement for me so there's always a trade off between long term value and risk mitigation. It needs to be done though as plenty can change in 10-20 years.

michaels

Paul_Herring wrote: »

Be aware that you're unlikely to be able to access your pension at age 55, so may want to look at other savings to bridge that gap if you're not already.

Basically there's still talk of restricting access to private pensions to state pension age minus 10 years.

Older articles:
2014 (58): http://www.telegraph.co.uk/news/10982177/Age-40-No-access-to-pension-until-58.html
2015 (70): http://www.telegraph.co.uk/finance/personalfinance/special-reports/11537512/Cash-in-your-pension-at-55-You-may-have-to-wait-till-70.html
2016 (57): http://citywire.co.uk/new-model-adviser/news/treasury-to-push-on-with-osborne-s-personal-pension-age-rise/a971694
July (58 again): http://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pension-delay-means-millions-must-wait-get-private-pensions/

One of, the no doubt many, threads on here about it: https://forums.moneysavingexpert.com/discussion/5644862

So is the current plan some sort of cliff edge on 1st April 2028 when the age goes from 55 to 57?

Retyre

michaels wrote: »

So is the current plan some sort of cliff edge on 1st April 2028 when the age goes from 55 to 57?

Does this help?

https://www.nidirect.gov.uk/articles/check-your-state-pension-age

michaels

Retyre wrote: »

Does this help?

https://www.nidirect.gov.uk/articles/check-your-state-pension-age

Found something on there with the current state pension age which excluded the new advanced plans to raise it to 68 starting in 2037 but nothing on plans to change the current 55 for tfls to 10 years less than state pension age.

Paul_Herring

michaels wrote: »

So is the current plan some sort of cliff edge on 1st April 2028 when the age goes from 55 to 57?

There is no current plan (i.e. there's no legislation yet), but both a taper and cliff edge have been mooted on here, while we wait for the government to give some certainty to the situation:

At the moment there is no legislation changing from 55 to 57. It is taken from a consultation a couple of years ago. That's why nobody is sure that it will happen or, if it does, whether there will be a cliff-edge or a gradual transition between the two ages.

EdSwippet

Paul_Herring wrote: »

There is no current plan ...

Although one could note that the last time this occurred, in April 2010, the increase from age 50 to 55 was a cliff edge.

I recall this distinctly because in April 2010 my age was 49 and a half. :-(

Retyre

Could it be that part of the tardiness is due to the tax take benefit of those individuals going into drawdown, a proportion of whom are not being overly careful of their tax position when doing so?

westv

EdSwippet wrote: »

Although one could note that the last time this occurred, in April 2010, the increase from age 50 to 55 was a cliff edge.

I recall this distinctly because in April 2010 my age was 49 and a half. :-(

But wasn't that actually on the cards for 16 years prior to 2010?