Can't trust government with pensions

Barry_Bear

There are reports that the government may target private pensions to raise taxes.

The lifetime allowance has been reduced before and could be yet again!

How can you expect people to save for the future when they can see our governments have a track record of moving the goal posts and a financial crisis means our governments tend to target those who have saved into pensions?

bostonerimus

These reports are usually "shots across the bows" of the Government by vested interests. 

eskbanker

You might as well just join in with this thread about similar unsubstantiated rumours:

https://forums.moneysavingexpert.com/discussion/6276861/telegraph-reporting-pensions-tax-threat/p1

barnstar2077

Personally, when I started work I thought it was on the understanding that I would be able to claim my state pension at 65, it felt like a kind of contract.  They should have increased it earlier for people who had not started work yet in my opinion.

Notepad_Phil

Barry_Bear said:

There are reports that the government may target private pensions to raise taxes.

It seems to me that when it comes to pension reporting "There are reports" basically means "We've no idea but we'll say it anyway"

I doubt that most people have any idea as to what a change to the LTA would actually mean so there's likely to be little difference even if the LTA is reduced.

barnstar2077 said:

Personally, when I started work I thought it was on the understanding that I would be able to claim my state pension at 65, it felt like a kind of contract.  They should have increased it earlier for people who had not started work yet in my opinion.

Expecting a 40 to 50 year delay before any state pension claim age increase can be made is expecting a bit too much.

When I first started work I was well aware that governments changed the rules all the time. I was quite happy to see income taxes etc fall so I can't complain when state pension claim age increases.

Terron

There are reports like this every year

ex-pat_scot

There are a few vested interests here:
- pension companies keen to raise a bit of scare-mongering "quick - fill up your Annual Allowance/ whatever, before it's taken away".  They want your money

- govt keen to kite fly with possible policy changes. They dangle a few ideas out and see what gets pushed back, and what doesn't really get any press. They can try out the idea of large changes, so that when smaller changes get put through it is seen as a victory

- fear and greed, as with all things.  Frankly we are all simple creatures and easy to manipulate.

barnstar2077

Notepad_Phil said:

Barry_Bear said:

There are reports that the government may target private pensions to raise taxes.

It seems to me that when it comes to pension reporting "There are reports" basically means "We've no idea but we'll say it anyway"

I doubt that most people have any idea as to what a change to the LTA would actually mean so there's likely to be little difference even if the LTA is reduced.

barnstar2077 said:

Personally, when I started work I thought it was on the understanding that I would be able to claim my state pension at 65, it felt like a kind of contract.  They should have increased it earlier for people who had not started work yet in my opinion.

Expecting a 40 to 50 year delay before any state pension claim age increase can be made is expecting a bit too much.

When I first started work I was well aware that governments changed the rules all the time. I was quite happy to see income taxes etc fall so I can't complain when state pension claim age increases.

I'm not saying it would be easy, but I think they could have made some effort at projections.  As if no one saw this coming.

Thrugelmir

Barry_Bear said:

There are reports that the government may target private pensions to raise taxes.

Unfortunately there's a dearth of magic money trees these days. 

QrizB

Barry_Bear said:

Can't trust government with pensions

Alas the tax treatment of pensions, ISAs, mortgage interest, road tax, fuel tax etc. is entirely in the hands of "government", so you have to trust them (or at least, put up with them).

Ditto income tax rates, VAT, the NHS, policing, defence, suffrage and not-being-sold-into-slavery.

On the plus side, you generally get a chance to change them every few years and swap one group for another.

Marcon

Barry_Bear said:

There are reports that the government may target private pensions to raise taxes.

The lifetime allowance has been reduced before and could be yet again!

How can you expect people to save for the future when they can see our governments have a track record of moving the goal posts and a financial crisis means our governments tend to target those who have saved into pensions?

What do you suggest as a viable, tax efficient alternative?