How much to live on

Pat38493

Organgrinder said:

Well this morning's announcement may have put a spanner in the works!

So I've done a little replanning on a scenario where you don't get higher rate tax relief on pension contributions.

Fortunately all is still good.

I just hope there no vat, income tax or NI changes too!

I didn't listen to any announcements today, but from the summary on the news sites, nothing was said about pensions specifically. Just general comments about pain and a statement that income tax and NI will not increase, which as we know from past governments of all colours, doesn't mean much as they can just play about with thresholds and allowances to achieve the same thing.

Organgrinder

Hence I said "may have". I suspect pension tax relief will be limited to 20% in the future, so I've adjusted my planning to see if this still makes my projected numbers ok.

I always think it's better to err on the side of caution that's all.

Albermarle

Pat38493 said:

Organgrinder said:

Well this morning's announcement may have put a spanner in the works!

So I've done a little replanning on a scenario where you don't get higher rate tax relief on pension contributions.

Fortunately all is still good.

I just hope there no vat, income tax or NI changes too!

I didn't listen to any announcements today, but from the summary on the news sites, nothing was said about pensions specifically. Just general comments about pain and a statement that income tax and NI will not increase, which as we know from past governments of all colours, doesn't mean much as they can just play about with thresholds and allowances to achieve the same thing.

Away from the scaremongering headlines in some media outlets, some more serious players have been analysing what Rachel Reeves could do to raise more revenue. Seems to be four main options;
1) Freeze personal allowances past 2028
2) Reduce higher rate tax relief on pension contributions in some way, although it could be complex to impliment.
3) Reduce exempt allowances on IHT
4) Increase CGT

This is still just speculation but the same four ideas keep cropping up. Maybe just some flag flying to assess reaction.

Organgrinder

Yes, which is why I looked at a potential impact. All ok on each of the above.

barnstar2077

Not increasing the personal allowance would be annoying.  It wouldn't take much more of an increase before I could live off of my pensions without paying tax at all ever again.  I really hope it at least goes up a bit in the next eight years or so!

Organgrinder

Well the world of investing is having a postive outcome so far - although I confess I check things far more often than I should.

My personal pension fund is up 17% in a year and my S&S ISA 2.5% in 3 months.

In terms of savings, my stooze fund has grown nicely and is currently earningover £50 in interest every month. Similarly my two regular saving pots are earning a nice 6%. If I can I fully intend to stooze once my current deals end in 12 months. Hopefully by transferring to a long term 0% card or two or failing that, getting new 0% purchase cards and doing the same again.

All in all the savings and ISA are generating real terms growth as well. 

So, happy days.

daz378

I'm apprehensive  the upcoming budget especially  the rumours of raising state pension  age ..I'm 8.5  years away from  nra...hope they follow the convention  of not raising it .within 10 years of retirement 

mark55man

There are many speculative threads about what might happen.  Let's just wait and see - I'm not saying that considering possibilities is unwise, just there are many political and financial opportunists for whom a little fear narrative is very helpful.  What gets my goat is a story is spun, the govt get the blame for the story and then when it doesn't happen the govt are accused of u turning.  But such is life - rumours never die but are rarely helpful

Albermarle

daz378 said:

I'm apprehensive  the upcoming budget especially  the rumours of raising state pension  age ..I'm 8.5  years away from  nra...hope they follow the convention  of not raising it .within 10 years of retirement 

Certain parts of the media are awash with speculation/scaremongering about what might be in the media. Most of the guesses will be wrong so best to just wait and see.

Organgrinder

I have done a little "what if" planning. Just in case. All seems ok.

It's really good to hear people's plans etc. Thankfully the majority of posters are not only willing to share their experiences, but are also open to advice or suggestions.

I must confess I do like people who aren't closed to new suggestions.