IFS reccomendations - £100 k max lump sum tax free from pension

Sunnylifeover50plan

Everyone is free until their money runs out. The blue sky thinking at the moment is partly focussed on how to force the prematurely economically inactive folks back into paying NI and tax. Perhaps the threat of a big pension stick will be enough to achieve this? I suppose the issue with such a broad conservative church is that it won't really be able to please any part of it's congregation sufficiently.

LHW99

Sunnylifeover50plan said:

Everyone is free until their money runs out. The blue sky thinking at the moment is partly focussed on how to force the prematurely economically inactive folks back into paying NI and tax. Perhaps the threat of a big pension stick will be enough to achieve this? I suppose the issue with such a broad conservative church is that it won't really be able to please any part of it's congregation sufficiently.

Maybe not only a conservative church? https://www.express.co.uk/news/politics/1733591/labour-jonathan-ashworth-work-retirees-uk-economy

(yes I know about the source, but even so)

zagfles

artyboy said:

michaels said:

As a govt in desperate need of revenue now, any changes that reduced pension contributions (that reduce taxation a bit and deffer it a lot) would be a win.  Plus we are generally talking about people who will never qualify for means tested benefits in retirement so there is little 'cost' to their having smaller pots in the future.

We are also talking about people whose financial position means that they are 90% plus solid Tory voters, and already may well be feeling squeezed with the lowering of CGT thresholds, and the 45% tax band.

So I suppose it comes down to how many votes these turkeys think they can safely cast for Christmas... may be moot in a couple of years time when they're out of office, although don't expect a hard socialist government to fill the void!

I think you're falling for the tired old stereotypes there. At the last election poorer people were more likely to vote Tory than richer people. Under Labour we had a LTA of 1.8 million and a £250k AA, under the Tories both massively cut, LTA halved in real terms, AA cut to less than a fifth of what it was under Labour, plus higher real terms health spending, welfare budget, tax burden etc under the Tories. The Tories have been far more socialist than Labour were!

Albermarle

artyboy said:

michaels said:

As a govt in desperate need of revenue now, any changes that reduced pension contributions (that reduce taxation a bit and deffer it a lot) would be a win.  Plus we are generally talking about people who will never qualify for means tested benefits in retirement so there is little 'cost' to their having smaller pots in the future.

We are also talking about people whose financial position means that they are 90% plus solid Tory voters, and already may well be feeling squeezed with the lowering of CGT thresholds, and the 45% tax band.

So I suppose it comes down to how many votes these turkeys think they can safely cast for Christmas... may be moot in a couple of years time when they're out of office, although don't expect a hard socialist government to fill the void!

If I was a Tory politician thinking about these types of changes, I would be less worried about the small minority paying 45% tax and worrying about CGT, than I would more worried be about the much larger % of people in the £50K to £80K bracket, with decent if not very large pension provision, who probably usually vote Tory but can also be floating voters.
although don't expect a hard socialist government to fill the void!
Difficult to imagine Kier Starmer leading a hard socialist government. It will probably be about as left wing as Tony Blair's was !