Budget Autumn 2017 Pension Tax Relief

Anonymous101

westv wrote: »

You're sounding a bit like WASPI!

My Mother would be proud! :j

Anonymous101

lisyloo wrote: »

This will include people like GPs, dentists.
A bad decision IMO to incentivise people to retire early or disincentivise them from continuing to work if you prefer.

I think it's ill thought out at best.
Certainly a shame the statistics don't exist to be able to make a fair comparison between the amount of revenue lost from income tax and generally through the VAT that these people would have contributed while in work and the revenue generated from lowering the lifetime allowance.

lisyloo

Anonymous101 wrote: »

I think it's ill thought out at best.
Certainly a shame the statistics don't exist to be able to make a fair comparison between the amount of revenue lost from income tax and generally through the VAT that these people would have contributed while in work and the revenue generated from lowering the lifetime allowance.

It's not just an economic argument.
I deliberately picked doctors and dentists as they have a value to the community beyond simply economic. If a significant number decide to retire then we have a problem with front line care.

michaels

Sure disincentivising pension saving is costly in the long term - but with governing parties having a maximum 5 year event horizon, I would have thought the idea of pulling in more revenue now at the expense of having pensioners with less savings 10+ years down the road was a no brainer for a govt of any colour

lisyloo

Sure disincentivising pension saving is costly in the long term

Lowering the LTA doens't disincentivise saving.
It disincentivises working longer.
Perhaps we don't care about IT consultants, estate agents, but we should care about experienced doctors - but I agree with you general point that the horizon is short term/next election.

Anonymous101

lisyloo wrote: »

It's not just an economic argument.
I deliberately picked doctors and dentists as they have a value to the community beyond simply economic. If a significant number decide to retire then we have a problem with front line care.

Very true... that didn't even occur to me.
They seem set on putting all the front line service professions under ever increasing pressure and lessening rewards. The pension angle is yet another straw.

Thrugelmir

lisyloo wrote: »

It disincentivises working longer.

Doubt it's a major consideration. Given the level of pension etc they receive. Let alone the money they've amassed during their working lives.

AlanP_2

I think many on here are missing what could be the opposing view point.

Increasing the pension tax relief offered to BR taxpayers swings pension savings in their favour as they could get (say) 30% relief on the way in and then pay [STRIKE]25%[/STRIKE] 20% on the 75% that isn't tax free.

Using the, not unreasonable in my view, premise that most HR taxpayers will manage to save towards their retirement and won't be reduced to paupers by limiting the HR relief then incentivising those on lower salaries to save more for latter years could be a social good and help to reduce benefit / social care charges falling on the public purse a few decades down the line.

EDIT - Amended 25% typo to 20%.

Paul_Herring

Anonymous101 wrote: »

When does the State pension age increase 2028? So 10 years... That should be enough time for anyone with aspirations of retiring at age 55 or shortly afterwards to make plans to save via taxable savings sufficiently to bridge the gap.

Some already are - I'm planning on retiring around 53. Worst case scenarios are I save a bit more each month, defer for a year or spend a little less; neither are particularly onerous to me.

lisyloo

Thrugelmir wrote: »

Doubt it's a major consideration. Given the level of pension etc they receive. Let alone the money they've amassed during their working lives.

I disagree. I think paying near to half your income (higher rate) is a massive disincentive for those who've been working hard 30-35 years.
There may be a few who love their jobs but the majority will retire before hitting LTA, I know we will.