Labour again...

Ciprico

Who else would be inclined to instantly grab all their SIPP 25% tax free lump sum if the Tories don't win with a majority. (Assuming they are able)

I don't claim to know much about anything, but Labour winning or being in coalition fills me with absolute dread...

The loss of tax free pension growth compared to any alternative seems a no brainer...

Can anyone reassure me this may not be best course of action...

AlanP_2

What alternatives are you worried about? Which specific item in the Labour Manifesto fills you with absolute dread?

If the concerns are around the economy / UK Stock Market / Savings Interest Rates what do you think will happen to them?

If you are worried about these then whether the TFLS is invested via a pesnion or via an ISA or just put in bank accounts won't make any difference will it?

Paul_Herring

Who else would be inclined to instantly grab all their SIPP 25% tax free lump sum if the Tories don't win with a majority.

Given that older people as a group are those more likely to vote, alienating them (1950's stuff not withstanding) is not something any party is likely to commit political suicide over.

Any disadvantageous changes to the treatment of the PCLS is unlikely to be made retrospective because of this, thus there is no obvious reason to make rash decisions.

All of this presumes, of course, one is in the position of being able to actually access the PCLS (i.e. those currently 55, or over, who haven't taken it all, already.)

The point is moot if you can't access it, so there's no point worrying about whether or not to do it.

jamiehelsinki

Im way off retirement so cant grab my pension, I do share your concerns though, I just see a very left wing group of politicians who are prepared to spend huge amounts of money with no real thought or detail in to how it will be financed.

Paul_Herring

with no real thought or detail in to how it will be financed

I'm fairly certain that a great deal of thought and detail have gone into it.

Especially the bits about "not frightening the horses" and "cans being kicked down the road."

bioboybill

123mat123 wrote: »

Who else would be inclined to instantly grab all their SIPP 25% tax free lump sum if the Tories don't win with a majority. (Assuming they are able)

I don't claim to know much about anything, but Labour winning or being in coalition fills me with absolute dread...

The loss of tax free pension growth compared to any alternative seems a no brainer...

Can anyone reassure me this may not be best course of action...

No, I'm not worried in the slightest, as I don't believe a word of the !!!!!!!! that is churned out by the Daily Mail, Daily Express, or any of the crap that comes out of Tory HQ. I'm more worried about what will happen if the Tories get back in with a majority and drive us over the cliff of a No Deal Brexit at the end of 2020.

Ciprico

...I am concerned they may simply remove the TFLS, it would be an easy policy to implement, and hit the people they want to hit...

This is from their manifesto:

A Labour government will review the tax and pension changes implemented by the Tory government to ensure that the workforce is fairly rewarded and that services are not adversely affected.

AlanP_2

123mat123 wrote: »

...I am concerned they may simply remove the TFLS, it would be an easy policy to implement, and hit the people they want to hit...

This is from their manifesto:

A Labour government will review the tax and pension changes implemented by the Tory government to ensure that the workforce is fairly rewarded and that services are not adversely affected.

So how does that last bit from the manifesto become "they will stop the TFLS"?

Which people do they want to hit?

bioboybill

I think they are more likely to look at the way people are able to salary sacrifice down to the living wage, thereby getting 40% tax relief and avoiding NI and getting benefits when they are on good salaries. I have seen people on here boasting of doing just that, and that's not what benefits are there for.

Then there's the increase in pension age.

JoeCrystal

123mat123 wrote: »

...I am concerned they may simply remove the TFLS, it would be an easy policy to implement, and hit the people they want to hit...

This is from their manifesto:

A Labour government will review the tax and pension changes implemented by the Tory government to ensure that the workforce is fairly rewarded and that services are not adversely affected.

Umm, TFLS is certainly not the pension change implemented by the Tory government. Besides, the Labour government is more likely to make the pension savings more beneficial for the average worker, especially with establishing an independent Pensions’ Commission, modelled on the Low Pay Commission, to recommend
target levels for workplace pensions.

Paul_Herring

bioboybill wrote: »

I think they are more likely to look at the way people are able to salary sacrifice down to the living wage, thereby getting 40% tax relief and avoiding NI and getting benefits when they are on good salaries.

Anyone sacrificing down to the National Living Wage will not be getting 40% tax relief on wages below £50K. It's 20%. At a push, if you're including NI, it's at most 32%. (And on wages above £50K on the same basis it's 42%.)