It's time to start digging up those Squirrelled Nuts!!!!

LHW99

Sounds like everyone here won't count then

pterri

Of course many DBs are ‘funded’, that is they are paid through investments from employer and employee contributions. Civil service, police, military (and MPs!) are ‘unfunded’, paid through taxation. Don’t have a political view on it but they ain’t the same. 

Sea_Shell

Well, after all that build up...    Nothing that impacts us directly or immediately.  

However, it would mean an additional IHT bill of over £130k, if we both meet with the grim reaper after the pension rule changes!!!     (we'd already have an IHT bill of £33k as it stands)

We won't be effected as potential beneficiaries though.   As FiL has SP and an annuity,  MiL has just SP (plus widow).   My Mum just has SP and PC, and my Dad just has his CS pension.   So non of that would count under the new rules, from what I can tell.     

Obviously, we can still be effected by the wider implications of everything on the economy, inflation and interest rates...but that awaits to be seen.

Hard to plan when the goalposts keep moving!! 

Until then...as you were.  

LHW99

Hard to plan when the goalposts keep moving!!

Therein lies the problem (not confined the the current Government). When planning for retirement, short notice changes tend to disrupt plans more or less significantly.

Moonwolf

LHW99 said:

Hard to plan when the goalposts keep moving!!

Therein lies the problem (not confined the the current Government). When planning for retirement, short notice changes tend to disrupt plans more or less significantly.

This, I think my plans are more at risk from a 1929 scale market adjustment than anything the government is likely to do outside of a far right or far left coup.

Sea_Shell

Thought...

Do these new IHT on pension rules now make it pointless (for us) to make the £2880 net annual pension contributions?


But, I suppose (for our beneficiaries) 60% of something is still better than 100% of nothing, right? 

ColdIron

Sea_Shell said:

Do these new IHT on pension rules now make it pointless (for us) to make the £2880 net annual pension contributions?

It's still £720 that you wouldn't have had. The 6.25% advantage still exists. The income tax position remains unchanged. So just as pointful(?) in that respect

westv

ColdIron said:

Sea_Shell said:

Do these new IHT on pension rules now make it pointless (for us) to make the £2880 net annual pension contributions?

It's still £720 that you wouldn't have had. The 6.25% advantage still exists. The income tax position remains unchanged. So just as pointful(?) in that respect

And the point of pension contributions is for your own benefit rather than someone else in 20, 30 or whatever years time.

michaels

ColdIron said:

Sea_Shell said:

Do these new IHT on pension rules now make it pointless (for us) to make the £2880 net annual pension contributions?

It's still £720 that you wouldn't have had. The 6.25% advantage still exists. The income tax position remains unchanged. So just as pointful(?) in that respect

IT is only 720 if you can draw it out as a non-taxpayer - so before state pension, otherwise only 180

Hal17

Good timing on this subject, I was just sitting here working out the numbers. I have 4 opportunities to further contribute the £2,880 per tax year before reaching 75. Just wondering if it is worth now?