LTA

RogerPensionGuy

The link below a few years back was saying had the origin LTA figure risen with inflation, it should of been 2.1M, think I've seen on the Internet it should of been more like 2.6M now.

But as inflation went up, they reduced the figure, a double wammy. 

Very hard to plan effectively, it needed a flexible approach and guessing and gut feeling.

I feel so sorry for unlucky people who activate pension stuff Jan or Feb 2023 ang got well clobbered with that 25% charge, and then in March 2023 all change.

I'm guessing Labour will get in and an LTA reinstatement will be just one of more taxes we will see, I think it should of been wound up to at last 2M instead of scrapping it, but reinstatement of the LTA will not be popular by some and that maybe helpful in the election after this one coming.
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https://chasedevere.co.uk/2021/08/17/pension-lifetime-allowance-cuts-on-the-horizon/

snowlaser

It is impossible to know what Labour will do as and when they get into office.  Equally - if you are more than 5 years from retirement - they could make a change in 2025 and a new government repeal it again in 2030 or 2035.

It is a general frustration of pension planning that unfortunately almost anything can happen between the day you pay into the scheme and the day you draw out from it. 

LHW99

It is a general frustration of pension planning that unfortunately almost anything can happen between the day you pay into the scheme and the day you draw out from it.

Someon on Radio4 this morning was talking about the issues at Thames Water (discussing the possibilityof partial or total re-nationalisation), and mentioning that there needs to be stability of regulation for companies to have confidence for encouraging long term investment into the sector.

It would be rather nice if there was a bit of stability in the pensions sector too, rather than leaving people worried that a change of government would reverse existing changes, or make further ones at very short notice. And while that has happened a lot this century, it wasn't entirely unknown in the last either.

Grumpy_chap

LHW99 said:

Someon on Radio4 this morning was talking about the issues at Thames Water (discussing the possibilityof partial or total re-nationalisation), and mentioning that there needs to be stability of regulation for companies to have confidence for encouraging long term investment into the sector.

It would be rather nice if there was a bit of stability in the pensions sector too, rather than leaving people worried that a change of government would reverse existing changes, or make further ones at very short notice. And while that has happened a lot this century, it wasn't entirely unknown in the last either.

Where is the regulation of the water sector not stable?

Interestingly, TW issues really derived from the fact that their owners (wholly pension fund owned holding company) have shown "no dividend" while setting up complex finance structures where the interest rate payable by TW is linked to inflation rate rather than a bank base rate as would be more common.  Inflation has soared, the owners (pension funds) have continued to charge the interest calculated as the percent above inflation, TW are unable to make the payments.