Budget Autumn 2017 Pension Tax Relief

Malthusian

stoozie1 wrote: »

As the OH of a 42 yr old NHS dentist, whose scheme will likely now have a normal retirement age of 69/70, I would argue the opposite of a few upthread. I think it is irresponsible to expect surgeons to be as accurate at tiny surgery at 70, and feel incentives to early retirement have many wider societal positives.

With more and more operations being done with robotics it won't be long before surgeons are as accurate at tiny surgery at age 100, as long as their minds are sharp. Even leaving that aside, surely a 60-something surgeon can be used for his experience and diagnostic ability, and oversee operations while leaving the intricate knifework to a younger surgeon.

If steady hands were the most important attribute of a surgeon their earnings would start falling away in their 40s, like those of professional golfers and darts players.

I would agree that there are advantages to limiting the maximum age, as we do for pilots. However, it only works for pilots because air travel in this country isn't free at the point of use. In healthcare we have infinite demand, therefore we must have infinite supply, or as close as we can get. The current political dogma demands that anyone who can wield a scalpel needs to work until they drop.

Triumph13

zagfles wrote: »

That wouldn't be tax neutral unless I've misunderstood.

Extra £100k in, £40k tax relief.

On the way out, the £100k taxed at 20% (£20k), plus £20k less TFLS so an extra 20% tax on that £20k (so £4k), so £24k tax total on way out.

So it'd be 40% in and 24% out. No, the current system is tax neutral for such a person. 25% LTA charge and 20% income tax compounds to 40% tax on the way out.

The LTA only really punishes those who pay 40% tax in retirement, or theoretically those who are basic rate taxpayers both in employment and retirement.

Whoops! Typo corrected. Thanks.
The other people currently penalised are those with big DB schemes like the doctors we want to keep working (although admittedly they are part of the 40% in retirement group). My solution treats them better than current if they keep working and worse if they want to retire early.

stoozie1

@malthusian very unusually I have to disagree.

Dentists in general practice DO experience a drop in earnings after 40 due to speed. They are forced to become businessmen (practice owners) to have higher earnings.

Robot surgeons in one's mouth, rather you than me, but each to their own.

As for continuing to teach after stopping practising, unfortunately this is no longer possible as you have to still see patients to be credible.

stoozie1

Ps whilst dogma may exist that surgeons work til they drop, politicians will have to sacrifice something else held very dear then, such as: UK citizens can sue public services for mistakes madein the line of freeatpointofaccess care.

zagfles

Triumph13 wrote: »

Whoops! Typo corrected. Thanks.
The other people currently penalised are those with big DB schemes like the doctors we want to keep working (although admittedly they are part of the 40% in retirement group). My solution treats them better than current if they keep working and worse if they want to retire early.

I can't see any correction?

Alexland

In addition to standardising the tax relief on pension contributions to give a greater incentive for basic rate taxpayers to save for retirement I would look carefully at how DB pension values are calculated for assessment against the LTA.

It seems very unfair that those fortunate enough to have a DB pension have the LTA exposure valued at 20x annual income whereas those with DC pots need to save around 30x annual income with resulting LTA assessment.

Alex

Triumph13

zagfles wrote: »

I can't see any correction?

That would be because it failed to save for some reason! Fixed now. Thanks.

Former_MSE_Andrea

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