yes!!!!!

bostonerimus

Wonderful news if you have enough lifetime income to take advantage, but it will only increase wealth inequity. It's a nice gift for the best off and irrelevant to the majority of people.

Ciprico

To take advantage of the abolished LTA and same TFLS the ability/threshold to save 40% going in and pay 20% coming out will remain unchanged for the majority of wealthy people who are able to take advantage of £1M + pensions, and this was one of the main benefits for us DC worker/savers?

There may be a IHT advantage, and a slight benefit for Salsac (NI), and maybe benefit these doctors with amazing DB pensions, but for most of us, not much to see here...?

BuildTheWall

Ciprico said:

There may be a IHT advantage, and a slight benefit for Salsac (NI), and maybe benefit these doctors with amazing DB pensions, but for most of us, not much to see here...?

Those are the jobs where we need them back at work. 

This is a good change as it rewards high savers rather than rich people by default. Stop feeling jealous. 

Malthusian

westv said:

NoMore said:

!!!!!! do we need a third thread!!

Isn't it a fourth thread? 

Maybe MSE needs to be a separate forum for debate and discussion of economic and political matters that affect people's financ... never mind, I don't want any more red cards.

Alexland

Ciprico said:

To take advantage of the abolished LTA and same TFLS the ability/threshold to save 40% going in and pay 20% coming out will remain unchanged for the majority of wealthy people who are able to take advantage of £1M + pensions

For many affected by LTA considerations it might just be delaying the application of 40% tax as if they delay retirement to accumulate bigger pots then draw them down over their remaining shorter retirement period they are more likely to be higher rate taxpayers in retirement. It seems most useful to those who intend to use their pensions for estate planning to avoid inheritance tax.

fizio

What about those already having use 100% LTA? Can they start a new pension - though the 25% tax-free makes it less attractive

drjohn67

Tax benefit for me going in was 25-40%.
Tax coming out? As the TFLS applies to only part of the pension hence tax out will be 20-35%.

In particular the amount above the LTA has no TFLS (2015 schemes so career averaged) = had a break of 40% going in and will be taxed at 40% coming out. Seems fair. Not a special tax break for the rich.

noclaf

bostonerimus said:

Wonderful news if you have enough lifetime income to take advantage, but it will only increase wealth inequity. It's a nice gift for the best off and irrelevant to the majority of people.

Agree with this, I earn a reasonable wage but not enough that I can shovel in £40k (let alone £60k) per year consistently for the next 15 odd years....I would need to live like a hermit to make that happen and would rather strike a balance.

In saying that, for those who have decent decent sized pots built up in their 30's/40's/early 50's this is definately positive....you can really 'fill yer boots' now with the caveat that a change in political party at the next election might see further changes or even reversal for some of these changes.....

drjohn67

Clive_Woody said:

Aylesbury_Duck said:

Workerdrone said:

Goodbye LTA

Wait until the detail is published before getting too excited.

In effect from 2026......

Looks like it states that they will abolish charge from 1Apr23 and LTA from 2024. Agreed can be reapplied whenever they decide in the future.

Beddie

Makes sense to remove it. The annual limit is enough, although it could have stayed at £40k + inflation.

Great for the people who are already wealthy enough not to need it. Perhaps he could have helped people nearer the bottom by doubling employer pension contributions - 3% is woeful.