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

artyboy

Albermarle said:

I agree that after 11/12 years of tinkering with pensions and now hopefully resetting back to the basic rules made in 2005/6 will indeed get more people happier to work longer, rejoin the workforce and probably do overtime or extra paid income to achieve prudent pension plans helping all society in the process.

Although considering the high levels of public ignorance about personal finance, even amongst higher earners,  I wonder how many will even understand what changes in pensions LTA and AA really mean, never mind see them as an incentive to work longer/harder. Notwithstanding the fact that the large majority of workers on average pay or thereabouts, will never be troubled by these issues anyway. At most it will maybe influence a very small % of professionals to alter their plans, at a relatively high cost to the Treasury ( £2 billion?) 

Although will probably save a me a few quid, so 

It's really quite eye opening that high earners in my own industry (banking/finance) often have a real knowledge gap when it comes to investments, pensions, credit cards etc. In a few cases it's "too rich to care", or because these are expats recently arrived off the boat. But a bit scary nonetheless. Mrs Arty frequently has to explain basic personal finance concepts to her own boss!

ex-pat_scot

artyboy said:

Albermarle said:

I agree that after 11/12 years of tinkering with pensions and now hopefully resetting back to the basic rules made in 2005/6 will indeed get more people happier to work longer, rejoin the workforce and probably do overtime or extra paid income to achieve prudent pension plans helping all society in the process.

Although considering the high levels of public ignorance about personal finance, even amongst higher earners,  I wonder how many will even understand what changes in pensions LTA and AA really mean, never mind see them as an incentive to work longer/harder. Notwithstanding the fact that the large majority of workers on average pay or thereabouts, will never be troubled by these issues anyway. At most it will maybe influence a very small % of professionals to alter their plans, at a relatively high cost to the Treasury ( £2 billion?) 

Although will probably save a me a few quid, so 

It's really quite eye opening that high earners in my own industry (banking/finance) often have a real knowledge gap when it comes to investments, pensions, credit cards etc. In a few cases it's "too rich to care", or because these are expats recently arrived off the boat. But a bit scary nonetheless. Mrs Arty frequently has to explain basic personal finance concepts to her own boss!

Same here - I work in a sophisticated FS advisory business, with lots of super intelligent qualified people, and there's a shocking lack of basic awareness of personal finance matters.
I've had quite a few colleagues quietly sidle up to me over the years and ask about pension schemes, investments, saving etc.
There are a few who loudly proclaim their ignorance of such matters in the office - I avoid engaging.

michaels

Albermarle said:

I agree that after 11/12 years of tinkering with pensions and now hopefully resetting back to the basic rules made in 2005/6 will indeed get more people happier to work longer, rejoin the workforce and probably do overtime or extra paid income to achieve prudent pension plans helping all society in the process.

Although considering the high levels of public ignorance about personal finance, even amongst higher earners,  I wonder how many will even understand what changes in pensions LTA and AA really mean, never mind see them as an incentive to work longer/harder. Notwithstanding the fact that the large majority of workers on average pay or thereabouts, will never be troubled by these issues anyway. At most it will maybe influence a very small % of professionals to alter their plans, at a relatively high cost to the Treasury ( £2 billion?) 

Although will probably save a me a few quid, so 

What is the net cost?  Obviously you are getting less tax from those who were willing to work and pay the AA/LA charges but on the other hand if anyone now decides to work 4 days instead of 3 as he 4th day does no longer results in the pension penalty they will still be paying 42%/47%/63% on that 4th days earnings.  I guess it depends on how much extra work it promotes?

vacheron

Albermarle said:

I agree that after 11/12 years of tinkering with pensions and now hopefully resetting back to the basic rules made in 2005/6 will indeed get more people happier to work longer, rejoin the workforce and probably do overtime or extra paid income to achieve prudent pension plans helping all society in the process.

Although considering the high levels of public ignorance about personal finance, even amongst higher earners,  I wonder how many will even understand what changes in pensions LTA and AA really mean, never mind see them as an incentive to work longer/harder. 

This is probably the truest, and yet least discussed thing I’ve ever read on this forum. 👍

I’ve dealt with many highly qualified professionals, with degrees and PhD’s and also with directors of numerous companies, and the obliviousness shown by so many of them to personal finance is disturbing!

These same people will search the internet for hours to save a hundred pounds on their new OLED TV, yet throw away many times more than this every month through poor knowledge of their tax position and will sleepwalk into working many more years than they may have otherwise needed to rather than learn a little and make some informed choices and provisions. 

JoeCrystal

Lifetime Allowance abolished!!!  The devil is in the details, though.

ex-pat_scot

increase AA to £60,000
abolish LTA!!!

Firefly12345

That is going to simplify things! I applaud.

artyboy

Blimey! Fill yer boots

Simon11

Abolishing the LTA removes 1/3 of the post on this board!

What will we do with all that time (once the NI posts have settled down) haha

rickenbacker330

Where’s the catch?