Budget 15th March2023, any pension changes predictions or views?

zagfles

michaels said:

zagfles said:

michaels said:

Oh yes the personal allowance withdrawal could be fixed by removing it and also brining the 45% threshold down to 80k. People earning between 80 and 100k would be up to 1k worse off but the system would be fixed.

But anyone earning £107k+ would be better off. Imagine the headlines in the Guardian!

Imagine how much neater the marginal tax rate curve would look though....

Well, with UC taper, tax credits taper, high income child benefit tax, marriage allowance withdrawal, saving allowance reduction etc, still very messy

HHarry

michaels said:

I earn 38k working 4 days a week, reduced to that level due to the AA.

Next year I was looking at reducing to 3 days or stop working in London but would not need to if the AA were increased.

Delaying sra to 68/pension availability date from 55 to 58 for those in their early 50s would seriously pee me off.  Less than 2 years warning of a major impact pension change seems a little short notice

 The narrative will be that a SPA change to 68 (or whatever) would give those in their early 50’s fifteen years notice - that perfectly reasonable right?

 But like you having made a plan on personal pension access at 55 I’d be ticked off.

Sea_Shell

Being a 'late 1971' bod.   I'm watching that part very closely, as i'd like to start to get my hands on my pension at 55.

If the goalposts move, it won't be the end of the world, but i'll be a little bit annoyed, as our plan was based around access from 55.

I'm already in the 'age 67' for SP bracket.


Still won't be going back to work though. 

CoffeeLover

As someone who turns 55 before the end of the tax year, I'm hoping the goalposts stay where they are.

michaels

CoffeeLover said:

As someone who turns 55 before the end of the tax year, I'm hoping the goalposts stay where they are.

Is it likely to change before the new tax year?  I wonder what you would need to do to lock in 55 before 5th April?

RogerPensionGuy

CoffeeLover said:

As someone who turns 55 before the end of the tax year, I'm hoping the goalposts stay where they are.

https://www.aviva.co.uk/retirement/pension-basics/changes-to-pension-age/#:~:text=From 6 April 2028, the,have a protected pension age.

Malthusian

Nebulous2 said:

I've never chased the detail as it doesn't affect me, and it may have been clickbait, but I've certainly seen articles claiming that Doctors have had to remortgage their homes to pay the tax due.

That's the "nurses are using food banks" story in a white coat.
There are big problems with the Annual Allowance and how it affects DB schemes, but the NHS Pension Scheme allows the tax to be paid out of your pension fund. (Subject to conditions.) If someone has had to re-mortgage their house in order to pay an AA charge personally, it suggests they buried their head in the sand, and then buried the sand.

Troxy

There is speculation in ifamagazine.com that the annual allowance will rise to £60k. This is the only report that I have seen with numbers on the AA so I am treating it with caution.

If true, it’s a hefty tax break to the higher/ middle earners and in my view difficult to justify. I’m unconvinced it will encourage many to delay retirement; it could do the opposite and allow the build up of sufficient funds earlier to retire earlier.

retiringtoosoon

Troxy said:

There is speculation in ifamagazine.com that the annual allowance will rise to £60k. This is the only report that I have seen with numbers on the AA so I am treating it with caution.

If true, it’s a hefty tax break to the higher/ middle earners and in my view difficult to justify. I’m unconvinced it will encourage many to delay retirement; it could do the opposite and allow the build up of sufficient funds earlier to retire earlier.

That's exactly what i would do. Stuff even more in

Simon11

I would also stuff more, however I am likely not to put too much into the pot. The bigger benefit is not having to worry about the AA limit at £60k, so less stress.

It would however make me more likely to want to push for a promotion (currently earning tax income of c£110k pa) as I really don't currently have much of an interest in taking on a more challenging/ stressful job when the tax rate gets to silly amounts (plus I have a small family, thus childcare benefits get reduced) and therefores makes the reward of a promotion rather pointless. If I can earn more money and put it somewhere sensible, then there is a reward financially there and I am more productive as a result.

However it would mean that I would likely retire earlier!


On a separate note, one thing that hasn't been considered here is that the cost of the Government looking after retired people/ social care when they have no/ little pension is huge. 

I am sure therefore that the business case for the Government makes sense around getting as many people as possible to save for the future and thus require less support by the state.