Chancellor Rishi Sunak hints at ruling out 8% pension rise

Thrugelmir

pensionpawn said:

Thrugelmir said:

Too complex to administer. The 8% increase once given is embedded forever.  The current debate isn't about "decent" increases in the state pension. 

OK, I'll reword: "...how best to convince the Chancellor not to cancel the 8% triple lock SP rise"

How much additional tax are you prepared to pay? 

pensionpawn

I, like most people I suspect, would like to pay as little tax as possible. I've planned my finances that way for decades so why would I change. This is merely a suggestion, hastily thrown together to ask the question of is there another way to stop the triple lock being reduced and thus impacting the less wealthy.
I would suggest that all of us would like to see the usual rise in the SP so maybe the additional tax should be slightly less than the triple lock increase. However, for those who can happily live on no more than twice the PA, the additional tax would be zero.

nigelbb

NedS said:

At some point I envisage a tax charge similar to the Child Benefit High Income charge whereby the state pension is effectively tapered away for pensioners with income above a certain threshold (maybe £40-50k). Give it with one hand and take it away from the more wealthy with the other.

The state pension is subject to income tax so is already effectively tapered away if your income is over £50K you will pay 40% income tax on your state pension.

zagfles

nigelbb said:

NedS said:

At some point I envisage a tax charge similar to the Child Benefit High Income charge whereby the state pension is effectively tapered away for pensioners with income above a certain threshold (maybe £40-50k). Give it with one hand and take it away from the more wealthy with the other.

The state pension is subject to income tax so is already effectively tapered away if your income is over £50K you will pay 40% income tax on your state pension.

Plus if you're paying 40% tax on your pensions then you've probably blown the LTA (or close to it)

Albermarle

nigelbb said:

NedS said:

At some point I envisage a tax charge similar to the Child Benefit High Income charge whereby the state pension is effectively tapered away for pensioners with income above a certain threshold (maybe £40-50k). Give it with one hand and take it away from the more wealthy with the other.

The state pension is subject to income tax so is already effectively tapered away if your income is over £50K you will pay 40% income tax on your state pension.

Also it does not take into account , those who have the assets to generate an income of £40K to £50K , but who  choose not generate so much in taxable income . By sitting on a large DC pot for example and not using it . Or by living off savings interest .
We can see from numerous posts on here, that retirement income strategies for wealthier people can be easily geared/timed to different circumstances .