Retirement

[BILLY BUS PASS]

Exactly. Get told to save save save into your own private pension and then the government change to goalposts?!? Understand, to an extent the state pension but how can they do that to my own personal private pension?!?
Just more lies from government after government. They are all corrupt, lying scum bags.

They set the laws to encourage people to make private provision for their retirement then decide on a whim to change it it’s nothing more than fukking bare faced robbery.
Do this everyone and these are the benefits, everyone spends years doing it then they change the rules ……….. no changes to their gold plated pension schemes though.

 

[Tuono]

Exactly. Get told to save save save into your own private pension and then the government change to goalposts?!? Understand, to an extent the state pension but how can they do that to my own personal private pension?!?

Probably because when you put money in a private pension the government gives you another 25%.

 

[Select coaches]

I’ve pulled my pension savings right back and saving into ISAs

Makes a lot of sense if you want to retire on your own terms

 

[Tuono]

That's what I'm doing, maxing my ISA's while reducing my private pension contributions.

 

[BILLY BUS PASS]

Probably because when you put money in a private pension the government gives you another 25%.

They don’t really though do they, they just give you the tax back on your pension contribution because they don’t want to have to pay tax on their own contributions cos govt and many other company schemes ya tax comes off after your pension contributions are deducted.

So at best they are giving you back what is rightfully yours.

 

[Barista]

Probably because when you put money in a private pension the government gives you another 25%.

I look at it another way - The 25% is not the government giving me money, but simply giving me back the money that they have taken off me via PAYE taxation.
Also on the whole it is just deferred taxation. Instead of taxing you on your income now, they are taxing you 5, 10, 20 years down the line on your pension income, as when you receive your state pension that will take up all of your tax free allowance and you will pay tax on your personal pension (except for tax free lump sum, and who knows if this will still be available in years to come).

 

[Matt Hopkins]

They set the laws to encourage people to make private provision for their retirement then decide on a whim to change it it’s nothing more than fukking bare faced robbery.
Do this everyone and these are the benefits, everyone spends years doing it then they change the rules ……….. no changes to their gold plated pension schemes though.

What are they robbing you of? The ability to take your pension at 55? It's hardly robbery

 

[Paul3845]

What are they robbing you of? The ability to take your pension at 55? It's hardly robbery

If you've planned to retire at 55 and then have to work a year or few more because they changed the goal posts, then surely that's robbery of a year or few years of your life ?

 

[Barista]

What are they robbing you of? The ability to take your pension at 55? It's hardly robbery

For me it is not ethical - we are encouraged to save into pensions and lock the money away for decades and then they say “hold on a minute, you know we said you could access it at 50, well now it is 55, or soon 57”.

 

[BILLY BUS PASS]

What are they robbing you of? The ability to take your pension at 55? It's hardly robbery

How about making it liable to inheritance tax. If this were the rules from the off people would have had the option to make other arrangements.

 

[JAZZMANB]

But why stop someone from accessing their life time savings ? Why change the goal posts?
I’ve saved hard for years to be able to retire early and now I’m being denied access to my money?

So you'd have to re route a few years into a usable lump to go at 55

 

[Matt Hopkins]

How about making it liable to inheritance tax. If this were the rules from the off people would have had the option to make other arrangements.

I took your post as a comment on the increase from 55 to 57

If you've planned to retire at 55 and then have to work a year or few more because they changed the goal posts, then surely that's robbery of a year or few years of your life ?

Suppose everyone has a different outlook. I wouldn't say it was robbing you of a few years of your life

 

[Paul3845]

I took your post as a comment on the increase from 55 to 57

Suppose everyone has a different outlook. I wouldn't say it was robbing you of a few years of your life

But if I'd set my heart on retiring at 55 but had to work later because the government changed the age I could access my pension, and consequently I had to work to 56 or 57, maybe those would be years I was robbed of ?

 

[JAZZMANB]

But if I'd set my heart on retiring at 55 but had to work later because the government changed the age I could access my pension, and consequently I had to work to 56 or 57, maybe those would be years I was robbed of ?

Not ideal especially on personal pots but they play a part in it with contributions and tax free lumps
If you're on it early enough you have a back up pot which would allow finishing but having to wait for your lump if that was the plan

 

[Tuono]

I look at it another way - The 25% is not the government giving me money, but simply giving me back the money that they have taken off me via PAYE taxation.
Also on the whole it is just deferred taxation. Instead of taxing you on your income now, they are taxing you 5, 10, 20 years down the line on your pension income, as when you receive your state pension that will take up all of your tax free allowance and you will pay tax on your personal pension (except for tax free lump sum, and who knows if this will still be available in years to come).

That's what worries me about the tax free lump sum, will they move the goalposts?

 

[Paul3845]

Not ideal especially on personal pots but they play a part in it with contributions and tax free lumps
If you're on it early enough you have a back up pot which would allow finishing but having to wait for your lump if that was the plan

I get contingency planning, but still not great when Government changes the rules - and never in your favour.

 

[Kent_Mackem]

I look at it another way - The 25% is not the government giving me money, but simply giving me back the money that they have taken off me via PAYE taxation.
Also on the whole it is just deferred taxation. Instead of taxing you on your income now, they are taxing you 5, 10, 20 years down the line on your pension income, as when you receive your state pension that will take up all of your tax free allowance and you will pay tax on your personal pension (except for tax free lump sum, and who knows if this will still be available in years to come).

However it does mean you get to put more money (because it is gross, not net, at that point) into a pension, which is basically a long-term locked savings scheme. Also has the advantage that the employer pays a contribution too.

That's what worries me about the tax free lump sum, will they move the goalposts?

Almost certainly.

How about making it liable to inheritance tax. If this were the rules from the off people would have had the option to make other arrangements.

Things change though. We get jobs, we lose jobs. Robots and AI take our jobs, other opportunities arise. Products, software and websites have lifetimes. Companies go bust and others get started.

We always have to adapt to changing circumstances. The inheritance tax changes are no different. Would most people have ploughed as much as they could into private pensions if they knew any remainder would be taxed on inheritance? Probably not. Those that are so minded will now put their money somewhere else. Others (I am one of them) don't have a problem with tax on inheritance. I actually think it is a good thing as money flows back into society. If there is any left in the pot when I croak it then my children will still get a freebie. It's not the end of the world for them that it gets taxed. With any luck it will be under the threshold by then anyway, but if it's not... they still get a decent freebie. I"ve never seen the issue with inheritance tax. It makes for a fairer society.

 

[Edinburgh Black Cat]

The situation is complicated for those for those born between 6 April 1971 and 5 April 1973 (which incudes me!) where you will be able to access your pension under the old rules then lose it. I still haven't got my head around what it all means

You must be logged on to see external links

Does that also apply for anyone born after 1973?

I was born after 73, reading your link my existing pension may be protected at 55 but it's unclear to me.

 

[Barista]

That's what worries me about the tax free lump sum, will they move the goalposts?

I think in the short term it won’t change as no government would dare, but there are scare stories before every budget.
In 10+ years, then I think as the demographics continue to get worse with less working age people, then it will be at risk. Maybe people will find it more palatable if for instance the rules are changed to state that any money contributed after xx date will not be part of the pot that has the 25% tax free lump sum. Most people would still benefit from the employer contribution.

 

[42]

Does that also apply for anyone born after 1973?

I was born after 73, reading your link my existing pension may be protected at 55 but it's unclear to me.

I think it just depends on the scheme if they have transitional arrangements for those who just miss out.

I think in the short term it won’t change as no government would dare, but there are scare stories before every budget.
In 10+ years, then I think as the demographics continue to get worse with less working age people, then it will be at risk. Maybe people will find it more palatable if for instance the rules are changed to state that any money contributed after xx date will not be part of the pot that has the 25% tax free lump sum.

I don't think the tax free lumper will go as without it, it massively reduces the appeal of pensions. Minimal in to get upto personal allowance, then rest in ISA. What might happen is that they could reduce it to 20%