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

n3ophyte

Albermarle said:

n3ophyte said:

dunstonh said:

I also noticed MPAA is increasing to £10,000 from April 23.

So … what do we call our £2880 Club now? The £7200 Club?

You are getting mixed up between two issues.
The MPAA ( now increased to £10K) is a maximum that can be added to a pension pa, if you have taken any taxable income from a DC pension.

£3600 gross ( £2880 net) is the maximum a non earner can add to a pension and that has not changes.

Ahh thank you. I got all excited for a moment!

Gerbert

Thanks zagfles for that clear and succinct explanation.

RogerPensionGuy

Listening to all the media today about reintroducing an LTA.

It has confirmed the nagging in my head that LTA will come back or potentially never be removed for political reasons. 

My current guess is it will somehow stay about in some form and if this occurs, it will be about 1.8M +/-200K as this figure will of increased the headroom from 1.073M but removed the arguments that removing it has caused.

So any prudent savers are back to pension moving goal posts currently and being talked about more, a total shambles.

One result of the above is prudent and able people will be filling their pots at 60K PA in quick fashion and then if LTA reintroduced hopefully enjoy the likely fixed protections.

Saying its a total shambles is an under statement, the results of government tinkering will be society collectively won't engage in sensible pension planning and long-term this will be very harmful for the UK society and economy down the road long-term. 

MK62

RogerPensionGuy said:

Listening to all the media today about reintroducing an LTA.

It has confirmed the nagging in my head that LTA will come back or potentially never be removed for political reasons. 

My current guess is it will somehow stay about in some form and if this occurs, it will be about 1.8M +/-200K as this figure will of increased the headroom from 1.073M but removed the arguments that removing it has caused.

So any prudent savers are back to pension moving goal posts currently and being talked about more, a total shambles.

One result of the above is prudent and able people will be filling their pots at 60K PA in quick fashion and then if LTA reintroduced hopefully enjoy the likely fixed protections.

Saying its a total shambles is an under statement, the results of government tinkering will be society collectively won't engage in sensible pension planning and long-term this will be very harmful for the UK society and economy down the road long-term. 

Probably......but tbh, the entire government has been a total shambles for at least the past year......

Sea_Shell

Sea_Shell said:

You just know that the opposition will have a field day with those increases.  

"helping the rich" etc etc.


I wonder...IF they did win next time out, will they REVERSE these changes, or suddenly go very quiet on them.  

Well colour me surprised...not!!! 

🤣

Pat38493

Sea_Shell said:

Sea_Shell said:

You just know that the opposition will have a field day with those increases.  

"helping the rich" etc etc.


I wonder...IF they did win next time out, will they REVERSE these changes, or suddenly go very quiet on them.  

Well colour me surprised...not!!! 

🤣

I wouldn't bet on it - they are saying that now for political reasons but they will fudge it - they will probably put it in their manifesto but without a % value and then increase it a lot.

Labour's position this morning on this made no sense - this is not the right time to be spending time on such measures.  We will reverse this measure when we get into power.  If they think the measure is ok but is not the priority, why would they waste further time reversing it???

They should be going after the 3 year freeze on tax allowances - if they can somehow make people understand how much of a tax increase that really constitutes they will be in business.

Sea_Shell

Pat38493 said:

Sea_Shell said:

Sea_Shell said:

You just know that the opposition will have a field day with those increases.  

"helping the rich" etc etc.


I wonder...IF they did win next time out, will they REVERSE these changes, or suddenly go very quiet on them.  

Well colour me surprised...not!!! 

🤣

I wouldn't bet on it - they are saying that now for political reasons but they will fudge it - they will probably put it in their manifesto but without a % value and then increase it a lot.

Labour's position this morning on this made no sense - this is not the right time to be spending time on such measures.  We will reverse this measure when we get into power.  If they think the measure is ok but is not the priority, why would they waste further time reversing it???

They should be going after the 3 year freeze on tax allowances - if they can somehow make people understand how much of a tax increase that really constitutes they will be in business.

I'm not sure I believe anything, any colour "rosette" says TBH. ☹️


Two cheeks of the same bottom.

Albermarle

Sea_Shell said:

Pat38493 said:

Sea_Shell said:

Sea_Shell said:

You just know that the opposition will have a field day with those increases.  

"helping the rich" etc etc.


I wonder...IF they did win next time out, will they REVERSE these changes, or suddenly go very quiet on them.  

Well colour me surprised...not!!! 

🤣

I wouldn't bet on it - they are saying that now for political reasons but they will fudge it - they will probably put it in their manifesto but without a % value and then increase it a lot.

Labour's position this morning on this made no sense - this is not the right time to be spending time on such measures.  We will reverse this measure when we get into power.  If they think the measure is ok but is not the priority, why would they waste further time reversing it???

They should be going after the 3 year freeze on tax allowances - if they can somehow make people understand how much of a tax increase that really constitutes they will be in business.

I'm not sure I believe anything, any colour "rosette" says TBH. ☹️


Two cheeks of the same bottom.

Where does that leave the middle party, the LibDems ??

LHW99

After a few years of doing this either the entire pot has been crystallised, or else I hit 75 which forces the rest to crystallise automatically (and a final PCLS and a potential LTA charge).

If a residual DC pension pot is automatically crystallised at 75, even if nothing had been withdrawn up to that point (?), that implies no access to tax-free cash / UFPLS for anyone after age 75..

I knew there would have been another LTA test, but not that the tax-free element was lost as a result. Is that the case?

retiringtoosoon

Albermarle said:

Sea_Shell said:

Pat38493 said:

Sea_Shell said:

Sea_Shell said:

You just know that the opposition will have a field day with those increases.  

"helping the rich" etc etc.


I wonder...IF they did win next time out, will they REVERSE these changes, or suddenly go very quiet on them.  

Well colour me surprised...not!!! 

🤣

I wouldn't bet on it - they are saying that now for political reasons but they will fudge it - they will probably put it in their manifesto but without a % value and then increase it a lot.

Labour's position this morning on this made no sense - this is not the right time to be spending time on such measures.  We will reverse this measure when we get into power.  If they think the measure is ok but is not the priority, why would they waste further time reversing it???

They should be going after the 3 year freeze on tax allowances - if they can somehow make people understand how much of a tax increase that really constitutes they will be in business.

I'm not sure I believe anything, any colour "rosette" says TBH. ☹️


Two cheeks of the same bottom.

Where does that leave the middle party, the LibDems ??

who are they?