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

zagfles

LHW99 said:

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If a residual DC pension pot is automatically crystallised at 75, even if nothing had been withdrawn up to that point (?), that implies no access to tax-free cash / UFPLS for anyone after age 75..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

No. See https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm063210#available-lta

RogerPensionGuy

The link below maybe of interest to some, Labour currently appears to be still planning to reverse various pension changes in the last budget. 

I know people say say only plan for current rules but, with the way governments have played and pulled at pensions these last 17 years or so, maybe need to plan think about possible and probable changes if/when Labour get it.

Bonkers!!!

https://www.telegraph.co.uk/politics/2023/04/22/labour-pension-raid-harsh-show-we-are-prudent/

woolly_wombat

RogerPensionGuy said:

The link below maybe of interest to some, Labour currently appears to be still planning to reverse various pension changes in the last budget. 

I know people say say only plan for current rules but, with the way governments have played and pulled at pensions these last 17 years or so, maybe need to plan think about possible and probable changes if/when Labour get it.

Bonkers!!!

https://www.telegraph.co.uk/politics/2023/04/22/labour-pension-raid-harsh-show-we-are-prudent/

Any changes expected other than the previously announced reinstatement of the LTA?

I can’t read the article, other than the scary headline!

LHW99

zagfles said:

LHW99 said:

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If a residual DC pension pot is automatically crystallised at 75, even if nothing had been withdrawn up to that point (?), that implies no access to tax-free cash / UFPLS for anyone after age 75..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

No. See https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm063210#available-lta

Very interesting thanks!

Malthusian

woolly_wombat said:

Any changes expected other than the previously announced reinstatement of the LTA?

Nothing specific.
But it is worth noting that it was an interview with the Shadow Work and Pensions Secretary, so he doesn't have any real say on pensions anyway. (The person who would actually be in charge of pensions if Labour won power is the Shadow Chancellor.)

RogerPensionGuy said:

I know people say say only plan for current rules but, with the way governments have played and pulled at pensions these last 17 years or so, maybe need to plan think about possible and probable changes if/when Labour get it.

People say "plan based on current rules" not because they think rules won't change in the future but because no-one knows how they will change.
One point of consistency is that the Government generally tries to avoid taxing people retrospectively. 
Another point of consistency is that if enough people change their behaviour in response to tax law, the Government changes the law accordingly. So, if you want to reduce your tax bill by successfully guessing future tax changes, not only do you have to outwit the government, you also have to outwit everyone else. If enough other people do what you are doing to avoid tax changes then the Government will just change tax to target you. 
Examples of things that people have done "in case the Government changes the rules" include drawing their tax free cash for no reason, not saving into pensions in the first place, and cashing in entire pension funds and putting it in buy-to-let. All of which made them poorer to greater or lesser extents.
The Government has been playing with "pensions" since they were a thing. Remember, A-Day in 2006 (which your "17 years" refers to) was supposed to be about "simplifying" the Byzantine thicket of different rules that had sprung up around the last few decades' worth of pushing and pulling with pensions.

RogerPensionGuy

Malthusian said:

woolly_wombat said:

Any changes expected other than the previously announced reinstatement of the LTA?

Nothing specific.
But it is worth noting that it was an interview with the Shadow Work and Pensions Secretary, so he doesn't have any real say on pensions anyway. (The person who would actually be in charge of pensions if Labour won power is the Shadow Chancellor.)

RogerPensionGuy said:

I know people say say only plan for current rules but, with the way governments have played and pulled at pensions these last 17 years or so, maybe need to plan think about possible and probable changes if/when Labour get it.

People say "plan based on current rules" not because they think rules won't change in the future but because no-one knows how they will change.
One point of consistency is that the Government generally tries to avoid taxing people retrospectively. 
Another point of consistency is that if enough people change their behaviour in response to tax law, the Government changes the law accordingly. So, if you want to reduce your tax bill by successfully guessing future tax changes, not only do you have to outwit the government, you also have to outwit everyone else. If enough other people do what you are doing to avoid tax changes then the Government will just change tax to target you. 
Examples of things that people have done "in case the Government changes the rules" include drawing their tax free cash for no reason, not saving into pensions in the first place, and cashing in entire pension funds and putting it in buy-to-let. All of which made them poorer to greater or lesser extents.
The Government has been playing with "pensions" since they were a thing. Remember, A-Day in 2006 (which your "17 years" refers to) was supposed to be about "simplifying" the Byzantine thicket of different rules that had sprung up around the last few decades' worth of pushing and pulling with pensions.

Just reread the post above, great post.

Cheers Roger.