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

Albermarle

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.

It is true that one reason why pension tax breaks generally are pretty generous, is to hopefully encourage  people to build up a pension pot and then not having to claim pension credit, housing benefit etc 

However this would affect lower paid people with modest savings and pensions, not people bumping up against the AA each year.

artyboy

As someone born less than a week the wrong side of the 55 to 57 pension withdrawal age change, I will be less than chuffed if there's a further rise to 58 that impacts me.

An unfreezing and immediate meaningful rise to the LTA will go some way to offsetting my ire, but frankly I don't need the government nannying me suggesting my money might run out if I retire too soon. Or worse, trying to wield a stick to keep me working. Not going to happen, will just have to utilise other assets to bridge...

ex-pat_scot

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.

i saw a note this morning that the FT have announced that the AA will rise to £60k and the LTA will also rise.
The note also said that the FT are never wrong on their budget comments, as they have the ear of the Treasury.
(I don't have FT access any more, so I can't corroborate)

MK62

If this turns out to the case, the opposition will have a field day.......especially at a time when other tax allowances have been frozen (and currently appear to be scheduled to stay frozen until 2028) 

michaels

MK62 said:

If this turns out to the case, the opposition will have a field day.......especially at a time when other tax allowances have been frozen (and currently appear to be scheduled to stay frozen until 2028) 

I guess Rishi still has to placate within his party and not merely pursue electoral arithmetic.

EdSwippet

artyboy said:

As someone born less than a week the wrong side of the 55 to 57 pension withdrawal age change, I will be less than chuffed if there's a further rise to 58 that impacts me.

As someone born three months the wrong side of the 50 to 55 pension withdrawal age change, I feel your pain.

zagfles

MK62 said:

If this turns out to the case, the opposition will have a field day.......especially at a time when other tax allowances have been frozen (and currently appear to be scheduled to stay frozen until 2028) 

They will anyway, the rhetoric from the oppostion will be the same whatever the budget actually contains. But this is an easily deflected one - all they have to do is remind them what the AA and LTA were under the last Labour govt! And what the personal allowance was.

Plasticman

Sea_Shell said:

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. 

Same here. I've ended up holding much more in cash than I would have liked to see me through if the age increases and therefore my pension isn't available. 

MK62

zagfles said:

MK62 said:

If this turns out to the case, the opposition will have a field day.......especially at a time when other tax allowances have been frozen (and currently appear to be scheduled to stay frozen until 2028) 

 But this is an easily deflected one....

....I guess we'll see soon if the increases actually happen......

Qyburn

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.

Do you actually mean Annual Allowance, rather than Lifetime Allowance? I don't really understand why ithe AA is a disincentive to work.