Budget to boost lifetime allowance for pension savings

Steve182

BBC News -

Jeremy Hunt will use his Budget to boost the lifetime allowance for pension savings of up to £1.8m a year to encourage people to keep working.

The Chancellor could also increase the £40,000 annual cap on tax-free contributions to pensions.

It is expected millions could benefit from the rise - which would address government concerns that people earning higher wages retire earlier, particularly doctors and consultants.

The Treasury said it will not comment.

Currently, the so-called lifetime allowance - the amount you can accumulate in your pension pot before extra tax charges - is £1.07m.

Mr Hunt will outline his Spring Budget to Parliament on Wednesday.

Flugelhorn

wonder if he will do anything about the Annual Allowance?

also re LTA - I took pension with IP 2016 but can't take private pension with losing £££££ from it - maybe I will now if the LTA goes up 

westv

Why is there another budget thread when we already have one discussing the same?

DoublePolaroid

Flugelhorn said:

wonder if he will do anything about the Annual Allowance?

also re LTA - I took pension with IP 2016 but can't take private pension with losing £££££ from it - maybe I will now if the LTA goes up 

Although OP hasn't linked to the BBC article it does also include a line indicating that AA is set to be increased to "up to £60k" so if we assume the veracity of one then it's probably reasonable to assume the latter is also in the pipeline. It will at the very least have the non-negligible impact of encouraging consultants/GP's to work extra hours/sessions. Quite how non-negligible this will be is probably anybody's guess.

Flugelhorn

Ideally they need a simpler way to calculate the AA liability rather than just guessing and getting a nasty shock

arnoldy

Steve182 said:

BBC News -

Jeremy Hunt will use his Budget to boost the lifetime allowance for pension savings of up to £1.8m a year to encourage people to keep working.

The number of people effected by the LTA is small, ergo this will only have a small effect on the number of people working. 

The bigger issue is sick notes and an UC/benefits system one feels needs looking at to help people in work be much better off.

lisyloo

I raised a smile when they said how poor (junior) doctors were and then how we needed to stop doctors retiring early because they were "too wealthy".
I realise there's an imbalance there across the profession but it did raise a wry smile.

MK62

DoublePolaroid said:

Flugelhorn said:

wonder if he will do anything about the Annual Allowance?

also re LTA - I took pension with IP 2016 but can't take private pension with losing £££££ from it - maybe I will now if the LTA goes up 

Although OP hasn't linked to the BBC article it does also include a line indicating that AA is set to be increased to "up to £60k" so if we assume the veracity of one then it's probably reasonable to assume the latter is also in the pipeline. It will at the very least have the non-negligible impact of encouraging consultants/GP's to work extra hours/sessions. Quite how non-negligible this will be is probably anybody's guess.

Overtime in the NHS isn't usually pensionable though........

Flugelhorn

lisyloo said:

I raised a smile when they said how poor (junior) doctors were and then how we needed to stop doctors retiring early because they were "too wealthy".
I realise there's an imbalance there across the profession but it did raise a wry smile.

yes there is a huge scale across the grades but then it gives you something to look forward to (!) and the pay matches the responsibility levels and experience   
When I started as Junior Doctor I worked bank holidays for 30% of the normal pay, cleaners were on time and a half so much better off - but hey things got better over time 

Flugelhorn

MK62 said:

DoublePolaroid said:

Flugelhorn said:

wonder if he will do anything about the Annual Allowance?

also re LTA - I took pension with IP 2016 but can't take private pension with losing £££££ from it - maybe I will now if the LTA goes up 

Although OP hasn't linked to the BBC article it does also include a line indicating that AA is set to be increased to "up to £60k" so if we assume the veracity of one then it's probably reasonable to assume the latter is also in the pipeline. It will at the very least have the non-negligible impact of encouraging consultants/GP's to work extra hours/sessions. Quite how non-negligible this will be is probably anybody's guess.

Overtime in the NHS isn't usually pensionable though........

depends how it is negotiated - I was a sessional GP on top of the day job and that was always pensionable - there is no 37.5 hour a week pensionable limit on medical staff 

arnoldy

Most (all) middle managers in private sector would not get overtime, let alone pensionable overtime and be expected to get the job done and are often the backbone of the business. Pensionable overtime let alone overtime for professionals does seem astonishing in 2023