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Labour's LTA plans?
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Silvertabby said:MetaPhysical said:I think many professionals and high earners - myself amongst them - especially those hovering around the £100-150k mark conclude that it isn't worth working so many hours, if at all, and paying so much tax what with withdrawal of PA, 45% tax, childcare withdrawal, etc. I have dropped from full time to 4 days per week because the "value" of that fifth day is not 20%, with the tax it is more like 5% and it is not worth my time, I'd rather do something else with that day like ride my bike or do some charity work. At least the LTA has been abolished (hopefully permanently).
Without getting into politics unduly, the Conservative party, the supposed "party of low taxation", has presided over this mess.
Interested how you might compare pensions policies specifically. The previous Labour government's included A Day, setting up the PPF, the 2006-9 reforms of public sector schemes, etc. Not sure they had less of a prudent feel than the past 14 years' worth, maybe more...? Michael Gove on LGPS liabilities for new academies, remember that! Or George Osborne on nationalising the Royal Mail Final Salary pension fund...5 -
hyubh said:It was a private joke for the incoming minister, supposedly based on a tradition of saying that...
He admitted that he came up with the idea by himself, based on a catchphrase he'd been using in budgetary negotiations with civil servants.
(It is also worth noting that in the same article where he flagellated himself for leaving the note, he described Labour's handling of the credit crisis as "an incredible achievement we should never have stopped shouting about". Even when trying to write mea culpas they just can't help themselves.)
Many new governments take charge when there is plenty of money swishing around - Byrne's party took office near the end of the longest bull market in history.
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Silvertabby said:MetaPhysical said:I think many professionals and high earners - myself amongst them - especially those hovering around the £100-150k mark conclude that it isn't worth working so many hours, if at all, and paying so much tax what with withdrawal of PA, 45% tax, childcare withdrawal, etc. I have dropped from full time to 4 days per week because the "value" of that fifth day is not 20%, with the tax it is more like 5% and it is not worth my time, I'd rather do something else with that day like ride my bike or do some charity work. At least the LTA has been abolished (hopefully permanently).
Without getting into politics unduly, the Conservative party, the supposed "party of low taxation", has presided over this mess.
And we (the tax payers) will be paying the financial cost of Covid for many years to come.3 -
All this talk about reinstating the LTA will encourage anyone with a large pension pot but not in labour's core public sector to consider early retirement now before a general election
Say they used their crystallised pot to purchase an annuity, how is labour going to make the LTA retrospective?5 -
tim9333 said:All this talk about reinstating the LTA will encourage anyone with a large pension pot but not in labour's core public sector to consider early retirement now before a general election
Say they used their crystallised pot to purchase an annuity, how is labour going to make the LTA retrospective?
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.
Football is probably a bad analogy as the people playing know the difference between the goalposts behind and in front of them, pension football posts just keep moving all the time and makes targets hard and even good prudent played easily score very painful own goals.
Hopefully Labour's will leak out their current comments on pensions soon.
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Malthusian said:hyubh said:It was a private joke for the incoming minister, supposedly based on a tradition of saying that...
He admitted that he came up with the idea by himself, based on a catchphrase he'd been using in budgetary negotiations with civil servants.
(It is also worth noting that in the same article where he flagellated himself for leaving the note, he described Labour's handling of the credit crisis as "an incredible achievement we should never have stopped shouting about". Even when trying to write mea culpas they just can't help themselves.)0 -
Hopefully Labour's will leak out their current comments on pensions soon.
Although whether any proposals come to pass or are U-turned on, like a lot of proposals on other things have been recently, we will have to see (not uncommon from any party unfortunately).
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RogerPensionGuy said:tim9333 said:All this talk about reinstating the LTA will encourage anyone with a large pension pot but not in labour's core public sector to consider early retirement now before a general election
Say they used their crystallised pot to purchase an annuity, how is labour going to make the LTA retrospective?
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.
Football is probably a bad analogy as the people playing know the difference between the goalposts behind and in front of them, pension football posts just keep moving all the time and makes targets hard and even good prudent played easily score very painful own goals.
Hopefully Labour's will leak out their current comments on pensions soon.
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hyubh said:Silvertabby said:MetaPhysical said:I think many professionals and high earners - myself amongst them - especially those hovering around the £100-150k mark conclude that it isn't worth working so many hours, if at all, and paying so much tax what with withdrawal of PA, 45% tax, childcare withdrawal, etc. I have dropped from full time to 4 days per week because the "value" of that fifth day is not 20%, with the tax it is more like 5% and it is not worth my time, I'd rather do something else with that day like ride my bike or do some charity work. At least the LTA has been abolished (hopefully permanently).
Without getting into politics unduly, the Conservative party, the supposed "party of low taxation", has presided over this mess.
Interested how you might compare pensions policies specifically. The previous Labour government's included A Day, setting up the PPF, the 2006-9 reforms of public sector schemes, etc. Not sure they had less of a prudent feel than the past 14 years' worth, maybe more...? Michael Gove on LGPS liabilities for new academies, remember that! Or George Osborne on nationalising the Royal Mail Final Salary pension fund...Numpty pension policy dates back a long way, the current farce of GMP equalisation plus all the WASPI stuff can be traced back to the hypocrisy of the 70's Labour govt passing the sex discrimination act yet not applying it to state pensions, and introducing SERPS (and hence GMP) which accrued differently for men and women because of different state pension ages!Then the fixing of all the deficiencies in private sector DB schemes by both parties (indexation, protection etc) plus stuff like ACT abolision etc just increased the cost of providing them massively, so now hardly any active DB scheme remain in the private sector.Then the A-day pension freedoms, followed by the financial crisis and so called "austerity" and "we're all in it together" meaning they had to hit the "rich" as well as "poor", reducing the LTA and AA plus stuff like the child ben withdrawal being the main tools to hit the "rich". Done for political reasons more than fiscal.Then the NHS and general jobs crisis where early retirees get the blame even though the main problem seems to be the rise in "long term sick", and an cross party acknowledgement that at least in the NHS problems are partly caused by pension policy and something must be done but political football about what.The real answer of course is to get cross party agreement on stuff like pensions as it's impossible to plan if every 5 years time we might get a new govt which changes policy direction completely. But of course pensions are too useful for politicans as a political football so it won't happen...2 -
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 backAlthough 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.
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