Budget 25% tax free

Cobbler_tone

Sea_Shell said:

*Speculation alert*

Personally, I won't be surprised if it was capped at £100k.

Hopefully they leave the access ages/dates alone.

I thought the 'rumours' i.e. the leaks, would be hitting the headlines by now. I'm impressed that we don't all know by now what is actually going to be released.

My main interest is CGT as my second home should complete this week but could also take another month or so because I know how these things can drag out! I just can't see them messing with this with an immediate impact but wouldn't rule anything out. Hopefully if they do mess with this it'll be left until the next tax year.

Not sure on the tax free limit on pensions. I could see them reducing it over time. £268k, £200k, £150k etc. I don't see them shafting themselves and their friends in such an extreme immediate cut. It would seriously impact a large number of people planning their retirements in the next few years but we've seen how pensioners are seen. 
It'll be anything to keep people in work for longer, or get them back to work, or capture more tax from them.

kempiejon

scotslad said:

Dazed_and_C0nfused said:

Why do you you want to take the TFLS up front so young, and not as part of each withdrawal?

Pay off mortgage and car. The take a smaller drawdown.

Unless someone can suggest a better way as i am not very clued up.

Need 2k a month without the mortgage and car payments for a happy retirment.

Pot is 730k

One way too look at it is you can't do anything until April at the earliest. As you accept you are not very clued up you have about 6 months between now and April to make a proper plan. A good kick up the wotsists for you as you realise your pensions is imminent and you've not planned for one of the biggest life events we most have to negotiate. That might also go some way to allaying your apparent fear. There is nothing you'll be able to do about what the chancellor is planning so under whatever prevail rules apply between now and your 55th birthday there's plenty of time to investigate all the options. My initial thoughts are it's possible to be much better off over a 20 plus year retirement leaving the lump sum in a personal pension and having a controlled deaccumulations of wealth.

Good luck with developing your plan, I'd be keen to read more.

FIREDreamer

westv said:

Only another 7 days.

… and a couple of hours.

But who’s counting!

JoeCrystal

FIREDreamer said:

westv said:

Only another 7 days.

… and a couple of hours.

But who’s counting!

Whatever happens, I am hoping there will just be a single thread to discuss all pension related impacts! Might set one one up if it doesn't appear so I got somewhere to post all government documents or consultations related to pensions.

westv

JoeCrystal said:

FIREDreamer said:

westv said:

Only another 7 days.

… and a couple of hours.

But who’s counting!

Whatever happens, I am hoping there will just be a single thread to discuss all pension related impacts! Might set one one up if it doesn't appear so I got somewhere to post all government documents or consultations related to pensions.

And pigs might fly. 

pterri

If they do reduce the amount greatly with some notice then I may jump early. This is one of the myriad issues. The removal of limits last time has meant that many have loaded up their pensions. In my case I’ve got a DB and AVCs as well as a sipp. Somehow, luck and some judgement, my pension savings are over £1m once you value the DB according tor HMRC rules. They will loose a lot of public sector professionals. Maybe they have proved that in and figured it’s worth it? 

sargan

There have been reports by 2 Government think tanks advising to cap tax free at £100k
I now into Retirement, but not touched any pensions yet. (part form State Pension)

If they do cap the 25% is that legally from the day of budget or do these changes typically only apply in Apr for the next tax year.   I have just short of £200k I could take out under 25% tax free rule ..... pondering what to do.
Pension fund currently performing at 31%   (though of course can drop) .... 

A lot of people paid extra into pensions ... on the expectation that this saving would give them 25% tax free .... will they be allowed to make retrospective ?

artyboy

westv said:

Only another 7 days.

Or another 437 new threads. However you choose to count it...

Albermarle

sargan said:

There have been reports by 2 Government independent think tanks advising to cap tax free at £100k
I now into Retirement, but not touched any pensions yet. (part form State Pension)

If they do cap the 25% is that legally from the day of budget or do these changes typically only apply in Apr for the next tax year.   I have just short of £200k I could take out under 25% tax free rule ..... pondering what to do.
Pension fund currently performing at 31%   (though of course can drop) .... 

A lot of people paid extra into pensions ... on the expectation that this saving would give them 25% tax free .... will they be allowed to make retrospective ?

Small correction to your first sentence .
 It is pointless speculating on how a measure maybe implemented, when we do not even know if that measure will be announced. In my humble opinion nothing will change ( I hope) . 

Albermarle

Cobbler_tone said:

Sea_Shell said:

*Speculation alert*

Personally, I won't be surprised if it was capped at £100k.

Hopefully they leave the access ages/dates alone.

I thought the 'rumours' i.e. the leaks, would be hitting the headlines by now. I'm impressed that we don't all know by now what is actually going to be released.

My main interest is CGT as my second home should complete this week but could also take another month or so because I know how these things can drag out! I just can't see them messing with this with an immediate impact but wouldn't rule anything out. Hopefully if they do mess with this it'll be left until the next tax year.

Not sure on the tax free limit on pensions. I could see them reducing it over time. £268k, £200k, £150k etc. I don't see them shafting themselves and their friends in such an extreme immediate cut. It would seriously impact a large number of people planning their retirements in the next few years but we've seen how pensioners are seen. 
It'll be anything to keep people in work for longer, or get them back to work, or capture more tax from them.

The £268K was effectively set the last time LTA was fixed. Due to inflation it is already worth less than £200K in real terms.
Further reduction and inflation on top will reduce the inventive for many people to save into a pension, and that for sure is not what any Govt wants as it potentially pushes up the benefits bill.