Labour's LTA plans?

leosayer

Albermarle said:

Exactly, Labour should reconfirm their plans on the LTA immediately, many people are currently taking serious pension decisions now that will indeed mean more people probably leaving the working population prematurely. 
A lot of institutions and people often think pension activation is hard wired to dropping out of the workforce, but it's often not the case, so because of pensions football and Labour saying they will reintroduce an LTA or similar, it will be too late.
People have been activating pensions early since Labour saud they will bring it back

Although at risk of repeating myself.

I do not think that some knee jerk comments following a surprise announcement by Jeremy Hunt to abolish LTA, constitutes a real plan to bring LTA back. 

AFAIK ( happy to be corrected ) they have studiously ignored the subject ever since, so not really sure why some people seem to think it is some kind of top priority for them.

I agree and personally, I am basing my retirement finance plans on legislation that is in place or has been announced in the budget. This means I have increased my pension contributions now that the LTA has been removed.

Taking financially material steps to mitigate an unknown manifesto and an unknown election result seems a pessimistic and potentially damaging approach.

najan49

According to this they are still planning to reintroduce it

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/labour-headteacher-pensions-protection-2890461

german_keeper

Albermarle said:

Exactly, Labour should reconfirm their plans on the LTA immediately, many people are currently taking serious pension decisions now that will indeed mean more people probably leaving the working population prematurely. 
A lot of institutions and people often think pension activation is hard wired to dropping out of the workforce, but it's often not the case, so because of pensions football and Labour saying they will reintroduce an LTA or similar, it will be too late.
People have been activating pensions early since Labour saud they will bring it back

Although at risk of repeating myself.

I do not think that some knee jerk comments following a surprise announcement by Jeremy Hunt to abolish LTA, constitutes a real plan to bring LTA back. 

AFAIK ( happy to be corrected ) they have studiously ignored the subject ever since, so not really sure why some people seem to think it is some kind of top priority for them.

I agree. I suspect if the whole of the British population were asked the question "what does LTA stand for" the vast majority wouldn't have a clue. Indeed of those who did know I would imagine rather more would answer Lawn Tennis Association than Lifetime Allowance.

RNV

Cannot link, but according to PensionsAge magazine dd 01/02/2024

Industry appreciates ‘continuity’ in Labour’s Plan for Financial Services

The pensions industry has expressed its relief and appreciation that aspects of proposed pension policy will likely be retained if the Labour Party wins the next general election.

Labour published its Plan for Financial Services yesterday (31 January), which outlined the party’s plans for pension policy if it comes into power, including a review of pensions and retirement savings.

“It is interesting that the Labour Party is keen to continue the journey of encouraging more investment in long-term illiquid assets such as productive finance,” commented Broadstone head of policy, David Brooks.

FIREDreamer

najan49 said:

According to this they are still planning to reintroduce it

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/labour-headteacher-pensions-protection-2890461

In line with Labour Party logic, we can all just identify as headteachers. 😂😂😂

zagfles

german_keeper said:

Albermarle said:

Exactly, Labour should reconfirm their plans on the LTA immediately, many people are currently taking serious pension decisions now that will indeed mean more people probably leaving the working population prematurely. 
A lot of institutions and people often think pension activation is hard wired to dropping out of the workforce, but it's often not the case, so because of pensions football and Labour saying they will reintroduce an LTA or similar, it will be too late.
People have been activating pensions early since Labour saud they will bring it back

Although at risk of repeating myself.

I do not think that some knee jerk comments following a surprise announcement by Jeremy Hunt to abolish LTA, constitutes a real plan to bring LTA back. 

AFAIK ( happy to be corrected ) they have studiously ignored the subject ever since, so not really sure why some people seem to think it is some kind of top priority for them.

I agree. I suspect if the whole of the British population were asked the question "what does LTA stand for" the vast majority wouldn't have a clue. Indeed of those who did know I would imagine rather more would answer Lawn Tennis Association than Lifetime Allowance.

They might not understand the acronym, but anyone can understand the concept of a "pension cap". Labour wouldn't have attempted to make political capital out of it otherwise. 

But like with bankers bonus cap which they've just u-turned on, I think they've realised this sort of thing backfires. Currently they're in the ridiculous position of wanting different tax rules for different professions (first NHS doctors, now headteachers, who next). I suspect another u-turn is coming...but who knows

zagfles

RNV said:

Cannot link, but according to PensionsAge magazine dd 01/02/2024

Industry appreciates ‘continuity’ in Labour’s Plan for Financial Services

The pensions industry has expressed its relief and appreciation that aspects of proposed pension policy will likely be retained if the Labour Party wins the next general election.

Labour published its Plan for Financial Services yesterday (31 January), which outlined the party’s plans for pension policy if it comes into power, including a review of pensions and retirement savings.

“It is interesting that the Labour Party is keen to continue the journey of encouraging more investment in long-term illiquid assets such as productive finance,” commented Broadstone head of policy, David Brooks.

Nothing there about the LTA. Just continuing the current (IMO) dodgy strategy of using pension savers money to invest in far more risky and politically motivated investments rather than simple safe stuff. Already most workplace DC default funds have moved away from simple trackers type funds towards politically motivated investment strategy (taking account of so-called "ESG" factors).

MarkCarnage

Currently they're in the ridiculous position of wanting different tax rules for different professions (first NHS doctors, now headteachers, who next). I suspect another u-turn is coming...but who knows

This is extremely stupid and they want to stop it right now. Animal Farm like........they should just shut up and stop digging! 

MarkCarnage

zagfles said:

RNV said:

Cannot link, but according to PensionsAge magazine dd 01/02/2024

Industry appreciates ‘continuity’ in Labour’s Plan for Financial Services

The pensions industry has expressed its relief and appreciation that aspects of proposed pension policy will likely be retained if the Labour Party wins the next general election.

Labour published its Plan for Financial Services yesterday (31 January), which outlined the party’s plans for pension policy if it comes into power, including a review of pensions and retirement savings.

“It is interesting that the Labour Party is keen to continue the journey of encouraging more investment in long-term illiquid assets such as productive finance,” commented Broadstone head of policy, David Brooks.

Nothing there about the LTA. Just continuing the current (IMO) dodgy strategy of using pension savers money to invest in far more risky and politically motivated investments rather than simple safe stuff. Already most workplace DC default funds have moved away from simple trackers type funds towards politically motivated investment strategy (taking account of so-called "ESG" factors).

Yes, 'directed' investment seems to be back on the radar....exchange and dividend controls next? 

That said, they have a bit of an open goal against the current incumbents who have lost all credibility for fiscal prudence and only seem to care about lining the pockets of their 'own' and keeping house prices inflated. 

RogerPensionGuy

A good link below. 
☆☆☆
https://www.telegraph.co.uk/money/tax/income/labours-pension-tax-plot-new-era-of-retirement-inequality/