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

Sea_Shell

I didn't realise that the LTA used to be that big?    

Grumpy_chap

zagfles said:

But part of the objective is to get people who've early retired back into work. 

It is irrelevant - there is virtually nothing the Government can do by way of taxation policy to get those who retired early to return to work.

Some who retired early may be forced to return if they run out of money.  That is also largely going to be unconnected to taxation policy.  

I do wonder whether, since COVID, some chose to retire early with wholly inadequate funds (I have read some threads of people with relatively small - far far away from LTA - pension pots musing whether they could retire at 55).  Will these individuals be trying to return to work when they reach 62 (or whatever)?  That will be outwith the life of the current Governmental cycle, but will the workplace want them then anyway?

retiringtoosoon

Great news that both these limits are likely to be increased. Means I can go back to being paid NMW and defer income tax to a much later date problem!

Spreadsheet_Addict

Selfishly, as someone who has long planned to retire at 55 in 2024 with the wife following at 55 in 2026, I'm concerned about any changes that bring forward the increase in the age you can access your pension from the current 2028. I'd have to work way longer than planned if it suddenly changed to age 58 for one or both of us, which would be hugely frustrating to move the goalposts at the last minutes of injury time.

I already think the change to 57 is unjustified- after all its our own money.

zagfles

Sea_Shell said:

I didn't realise that the LTA used to be that big?    

Yes, when the current regime (LTA/AA etc) was introduced by the Labour govt in 2006, the AA/LTA were only ever intended to cap contributions on the very highest earners. The AA was initially £250k, and the LTA was £1.5 million, which is over £2.5 million in real terms (today's money).

Then there were the so-called "austerity" years and "we're all in it together" after the financial crisis, so while the govt was cutting stuff like spending/benefits etc it had to be seen to be hitting higher earners as well, so they did stuff like reduce the AA/LTA, cap child ben for higher earners etc.

Universidad

Spreadsheet_Addict said:

I already think the change to 57 is unjustified- after all its our own money.

How much tax did you pay on it?

retiringtoosoon

retiringtoosoon said:

salary sacrifice abolished.
LTA reduced to £500k.
AA increased to £60k!

At least i may be a third right!

artyboy

Spreadsheet_Addict said:

Selfishly, as someone who has long planned to retire at 55 in 2024 with the wife following at 55 in 2026, I'm concerned about any changes that bring forward the increase in the age you can access your pension from the current 2028. I'd have to work way longer than planned if it suddenly changed to age 58 for one or both of us, which would be hugely frustrating to move the goalposts at the last minutes of injury time.

I already think the change to 57 is unjustified- after all its our own money.

I think it's unlikely there would be any very short notice changes to minimum withdrawal ages - generally these things are broadcast 10+ years before implementation. Mrs Arty will be 55 next year and I'd be gobsmacked if she was impacted (not that she's immediately planning to draw down...)

Spreadsheet_Addict

Universidad said:

Spreadsheet_Addict said:

I already think the change to 57 is unjustified- after all its our own money.

How much tax did you pay on it?

I will pay tax when I draw it, like everyone else. Your point?

Are you one of the people who thinks the government owns our income and we are "gifted" tax relief?

I earned it through hard work. I'll pay tax when I withdraw it.  Tax is deferred, not avoided and when I draw my pension and spend it, it'll help the economy as much as anyone in work.

zagfles

Grumpy_chap said:

zagfles said:

But part of the objective is to get people who've early retired back into work. 

It is irrelevant - there is virtually nothing the Government can do by way of taxation policy to get those who retired early to return to work.

Maybe, maybe not. Obviously the majority won't, but it might have some effect. And if it doesn't, the policy I suggested won't cost anything (or very little).