Autumn statement reactions with reference to pension & retirement planning, views & comments?

Pat38493

So can I get my wife to pay me 6K a year for doing the housework to get a free state pension?  (not relevant for me as I already have a full accrued state pension but just wondering if this will create loopholes).

whattochoose

I'm disappointed they haven't increased the amount of interest you can earn before becoming liable to tax.

ChocolateWombat

Currently a friend who has stopped working but hasn’t taken their pension yet, does some exam marking for the exam boards.  This means they can be registered as self employed and lay voluntary NIC under class 2, to boost up their years of NIC so they get closer to the full state pension.

How would the changes if the autumn statement impact them?  Would they get the benefits of credited years towards their state pension by simply doing the marking, or would they still need to voluntarily pay the NIC too?  Thanks

kuratowski

whattochoose said:

I'm disappointed they haven't increased the amount of interest you can earn before becoming liable to tax.

Savers aren't currently the policy priority, at least this time round the giveaways are focused on workers and businesses.

The bigger issue is that the 'windfall' being spent is purely hypothetical, as the OBR has pointed out.  The £19bn in giveaways is based on an assumption that "unprotected" government departments' spending will fall by 2.3% in real terms in 2025-26.  That is, the autumn statement makes no allowance for inflation since the last budget as far as most departments are concerned (the main exceptions being health, schools, defence).

molerat

ChocolateWombat said:

Currently a friend who has stopped working but hasn’t taken their pension yet, does some exam marking for the exam boards.  This means they can be registered as self employed and lay voluntary NIC under class 2, to boost up their years of NIC so they get closer to the full state pension.

How would the changes if the autumn statement impact them?  Would they get the benefits of credited years towards their state pension by simply doing the marking, or would they still need to voluntarily pay the NIC too?  Thanks

The only difference from next year is that those above £12570 profit will no longer pay class 2 NI but will receive class 2 credits.

Those between £6,725 and £12,570 will get class 2 credits as now.

Those below £6725 will need to pay voluntary class 2 as now.

dealyboy

I don't think state pensioners are so well served by this 'budget'.

Sure the SP will go up by 8.5% but that's only because of the triple lock rules! Take my case, next year my income will be around £12k all from state pensions, no public sector pension, no benefits. I used to be able to add £2,880 to a SIPP and drawdown £3,600 without paying tax. Now with the thresholds still frozen I will end up paying £540 income tax after all the hassle of reclaiming overpaid tax, so net gain of £180 compared to what it was, £720.

I heard Liam Halligan just now state that the tax take due to stealth will increase by 4x the national insurance cut.

Albermarle

NoMore said:

Oh great another thread that will descend into arguments and political point scoring about anything but the subject of the thread.

Can you not post this in a more appropriate place, as the autumn statement will be covering far more than pensions.

In fact three threads running at once.
Autumn Statement - Multiple ISA subscriptions allowed — MoneySavingExpert Forum
Autumn statement - ISA rule changes from April 2024 — MoneySavingExpert Forum

saucer

I came on here to specifically see what people were raising regarding the statement, and particularly on the pension forum. New threads on an internet forum hardly controversial  

Miser1964

Good news on NI as this, unlike income tax, can't be blocked by the SNP so Scottish workers will benefit 

Hoenir

Albermarle said:

NoMore said:

Oh great another thread that will descend into arguments and political point scoring about anything but the subject of the thread.

Can you not post this in a more appropriate place, as the autumn statement will be covering far more than pensions.

In fact three threads running at once.
Autumn Statement - Multiple ISA subscriptions allowed — MoneySavingExpert Forum
Autumn statement - ISA rule changes from April 2024 — MoneySavingExpert Forum

At least these threads are on topic in the right sections on the forum. Unlike this unnecessary thread.