Labour's LTA plans?

RogerPensionGuy

Ganga said:

RogerPensionGuy said:

I think 16 years of playing ⚽️ pensions has unfortunately made it hard to plan and switched lots of pressure off.

I think some current pension rules and the complicated various different and conflicting protections have many good and bad points now and over the ⚽️ years has made winners and loosers. 

I think if Labour get in to power at the election, they hopefully won't start changing pensions stuff straight away, maybe a statement of doing nothing whilst they get a review and proper consideration and anymore changes are sensible and allow and explain protections or lock-ins for when the ⚽️ game starts again as it obviously needs sensible tweeks.

What are the footballs for ?

In my opinion, since 2006, all governments in power just kept playing with pensions, up, down, sideways, up, down and then erase the LTA, but retaining a maximum TFLS or 268K frooze forever. 

I've been very interested in pensions for 15 years and I'm still confused with all the changes, stopping and starting pension contributions because I felt unable to plan sensibly and used cash for other stuff, infact in a way a but lucky as I fed ISAs & GIAs and now actually like the ability and flexibility of having sensible cash pots.

So my ranting of them playing ⚽️ using a 🏉 is just pointing out they don't make these pensions easy going, now they have used rocket to remove the LTA from earth and ice froozen the TFLS 268K which maybe okay now, that 268K should definitely be unlocked and rise.

Had the LTA of just went up with inflation since 2006 it would be 2.6M now and the TFLS 650K now.

So I only hope the next government actually take breath, get a sensible review and consultation going and designs pension rules that inspire confidence.
...

https://www.gov.uk/guidance/losing-your-lifetime-allowance-protection#lifetime-allowance-protections

sgx2000

Omg 
I wonder what tiny percentage of the population are effected by the LTA......

RogerPensionGuy

sgx2000 said:

Omg 
I wonder what tiny percentage of the population are effected by the LTA......

Top of my head thought it was currently 4 or 5% of the population today.

However,  fixing forever the TFLS on the soon to dissappear LTA of 1.073M/268K that 4 or 5% will ramp up and up quick enough. 

They will obviously start playing with pensions soon enough, my guess is that TFLS/268K will be on the football pitch, could be going down or up, could be put on a gearing of sumthink or just dream up another number and lock it yet again, the reason they like locking is because it gives yet another reason to play with it a few more years down the road when inflation gives them another reason as if they needed any reasons to play ⚽️ 

arthur_fowler

RogerPensionGuy said:

sgx2000 said:

Omg 
I wonder what tiny percentage of the population are effected by the LTA......

Top of my head thought it was currently 4 or 5% of the population today.

I think you are an order of magnitude high.

shortseller09

RogerPensionGuy said:

could be put on a gearing of sumthink or just dream up another number and lock it yet again, the reason they like locking is because it gives yet another reason to play with it a few more years down the road when inflation gives them another reason as if they needed any reasons to play ⚽️ 

Is that Orwellian?

RogerPensionGuy

arthur_fowler said:

RogerPensionGuy said:

sgx2000 said:

Omg 
I wonder what tiny percentage of the population are effected by the LTA......

Top of my head thought it was currently 4 or 5% of the population today.

I think you are an order of magnitude high.

No one knows how many people will be affected by the LTA TFLS stuck at 268K.

Of that 268 remains, as time goes by, some people will possibly limit inputs and use other vehicles.

The % question and answers will only be known after much time.

I know plenty of people who limited pension inputs and ploughed in to the Buy To Let market over the years, these people have luckly done very we with capital growth on properties and renting income.

The people I mentioned going in to the BTL now don't want to sell any properties because they are worried about the extra STLD if they evert buy again, so they feel locked in keeping BTL properties. 

The above is a good example of short-term vote winning policies and little thinking or concerns of unintended consequences that we see so much nowadays. 

We will build 400,000 houses a year, 350K extra per week to to NHS, 25,000 more police, increase MPs pay & pensions and protect & enhance government employees pensions. All promises are never kept, just some unfortunately,  more ⚽️ I'm afraid to say. 

zagfles

sgx2000 said:

Omg 
I wonder what tiny percentage of the population are effected by the LTA......

Anyone stuck on an NHS waiting list for years because of a shortage of consultants...

hyubh

RogerPensionGuy said:

arthur_fowler said:

RogerPensionGuy said:

sgx2000 said:

Omg 
I wonder what tiny percentage of the population are effected by the LTA......

Top of my head thought it was currently 4 or 5% of the population today.

I think you are an order of magnitude high.

No one knows how many people will be affected by the LTA TFLS stuck at 268K.

Of that 268 remains, as time goes by, some people will possibly limit inputs and use other vehicles.

The % question and answers will only be known after much time.

I know plenty of people who limited pension inputs and ploughed in to the Buy To Let market over the years, these people have luckly done very we with capital growth on properties and renting income.

That's pretty much 'working as intended' though (not investing in BTL specifically, doing something other than everything in pensions). It was the disconnect between the LTA and doctors as highly paid members of a fully open DB scheme without an option to receive the value some other way that led to the LTA's abolition in the first place.

Moonwolf

What is the LTA for?

The only purpose I can see is to stop the very rich hiding large amounts of wealth from tax and then inheritance tax by putting it in pensions.

For me, (assuming the above is correct) this then raises follow-up questions.

- Doesn't the annual allowance do this?
- Why not change the inheritance tax rules instead?
- Why does it need to apply to DB pensions and money used to buy annuities, given they only generate income, which is taxed, they aren't a mechanism for passing on cash?

Cus

I never understood why they couldn't adjust the doctors dB pension so that they didn't accidentally put too much into it and have to pay an annual allowance tax charge