Labour's plans - changing pension tax relief
Discussion
Of all the tax changes hinted at for the October budget, the possible removal of the higher rate tax relief on pension contributions will hurt me the most.
My company doesn't match fund pension contributions. They contribute a flat 5% so I have been chunking in 30+%, especially to help avoid the "taxable income" of my company car BIK and the child benefit claw-back. I just don't think it will be worth me contributing so much into my workplace DB pension if they remove the tax relief incentive. It's annoying as I have been monitoring my pension app projections to ensure I will have enough to retire on, especially against the speculation that the state pension might be means tested at some point.
Do you think they will remove this higher rate tax relief completely? Doesn't it go against the whole mandatory workplace pension to not rely on the state pension narrative?
My company doesn't match fund pension contributions. They contribute a flat 5% so I have been chunking in 30+%, especially to help avoid the "taxable income" of my company car BIK and the child benefit claw-back. I just don't think it will be worth me contributing so much into my workplace DB pension if they remove the tax relief incentive. It's annoying as I have been monitoring my pension app projections to ensure I will have enough to retire on, especially against the speculation that the state pension might be means tested at some point.
Do you think they will remove this higher rate tax relief completely? Doesn't it go against the whole mandatory workplace pension to not rely on the state pension narrative?
The Leaper said:
Yes....30% will be the max relief for all.
R.
What plans? What fR.
king plans? You seen them? Got an advanced copy of them? No, you don't. From the other thread, because it is already a thread about this speculative ste, and why exactly we need yet another about one, possible, may or may not happen thing is beyond me...OoopsVoss said:
Slow.Patrol said:
I think the budget date is set for 30th October
yep been posted above. Its all speculation to then. Part of having a vacuum of information might be informing them of how bad each of their potential measures might be received.This thread is largely imagining up negative only / worst case scenario's. There are a lot of reasons that Labour can't do (all of) what people here fear. They are correct to worry (given the history), but they would have to be approaching levels of ineptitude that only Truss and Kwasi have plumbed in recent years. They have spoken a lot about fiscal prudence and growth. IF they deviate too much on that, run envy vendetta's or policy fairies the market is going to eviscerate them. They have to look like they have a credible forward plan - so can't dwell in the black hole for too long.
Simpo Two said:
In which case I won't bother topping up my missing NI contributions!
Same here so would be a counter productive move. And hard to justify for those who have paid the full NI amount especially if those who haven’t (because they’re feckless benefit scrounges for example) get the full amount pension.Martin315 said:
Simpo Two said:
In which case I won't bother topping up my missing NI contributions!
Same here so would be a counter productive move. And hard to justify for those who have paid the full NI amount especially if those who haven’t (because they’re feckless benefit scrounges for example) get the full amount pension.FreeLitres said:
Martin315 said:
Simpo Two said:
In which case I won't bother topping up my missing NI contributions!
Same here so would be a counter productive move. And hard to justify for those who have paid the full NI amount especially if those who haven’t (because they’re feckless benefit scrounges for example) get the full amount pension.If in 8 years time they haven’t either extended the age and / or introduced means testing then so be it.
No government will means test the state pension.
Currently we are seeing a massive campaign of disinformation about Labour's tax plans.
Also, endless think tanks/whatever are just spouting loony ideas because they think their new chums will listen to them. But these loonies are not the ones who would have to implement their fruit loop ideas, so they can be ignored.
But, the main thing is Labour love all this nonsense, because it softens people up to believe they will shortly be stealing all their money. When they only steal a bit more it, everyone breaths a sigh of relief that it wasn't as bad as they expected it to be.
It's classic behaviour.
Currently we are seeing a massive campaign of disinformation about Labour's tax plans.
Also, endless think tanks/whatever are just spouting loony ideas because they think their new chums will listen to them. But these loonies are not the ones who would have to implement their fruit loop ideas, so they can be ignored.
But, the main thing is Labour love all this nonsense, because it softens people up to believe they will shortly be stealing all their money. When they only steal a bit more it, everyone breaths a sigh of relief that it wasn't as bad as they expected it to be.
It's classic behaviour.
snuffy said:
No government will means test the state pension.
Currently we are seeing a massive campaign of disinformation about Labour's tax plans.
Also, endless think tanks/whatever are just spouting loony ideas because they think their new chums will listen to them. But these loonies are not the ones who would have to implement their fruit loop ideas, so they can be ignored.
But, the main thing is Labour love all this nonsense, because it softens people up to believe they will shortly be stealing all their money. When they only steal a bit more it, everyone breaths a sigh of relief that it wasn't as bad as they expected it to be.
It's classic behaviour.
This is what's happening, leak the worst possible scenarios so everyone gets up in arms about it, then the actual budget is bad, just not as bad as the leaks, and suddenly everyone is happy as "it could haver been worse".Currently we are seeing a massive campaign of disinformation about Labour's tax plans.
Also, endless think tanks/whatever are just spouting loony ideas because they think their new chums will listen to them. But these loonies are not the ones who would have to implement their fruit loop ideas, so they can be ignored.
But, the main thing is Labour love all this nonsense, because it softens people up to believe they will shortly be stealing all their money. When they only steal a bit more it, everyone breaths a sigh of relief that it wasn't as bad as they expected it to be.
It's classic behaviour.
I dont know why the total number of years contribution to reviece the full pension isnt increased. You could not work until 32 and still recieve the full state pension (from 2028 at least). Instead of increasing the age at which you can take it and messing about with triple lock etc, why not increase the number of years you have to contribute? Most youngsters will have contributed before university and during university and then go on to work for 46 years before hitting state pension age if they graduate at 21.
I guess that wont save much money now and would probably benefit the next government instead
I guess that wont save much money now and would probably benefit the next government instead
50 years old here, paying a decent chunk in my pension each month to get the 40% tax relief and the state pension is part of my retirement planning.
How is it fair they are potentially going to move the goal posts without any notice?
My ex wife's family on the other hand have never worked a day in their life and are guaranteed a pension.
There is literally little point working anymore, you work your arse off for 45 years to afford a few years of retirement and they don't even want you to have that. They want you working until you die to pay for the layabouts.
How is it fair they are potentially going to move the goal posts without any notice?
My ex wife's family on the other hand have never worked a day in their life and are guaranteed a pension.
There is literally little point working anymore, you work your arse off for 45 years to afford a few years of retirement and they don't even want you to have that. They want you working until you die to pay for the layabouts.
FreeLitres said:
Doesn't it go against the whole mandatory workplace pension to not rely on the state pension narrative?
Interestingly Mandatory workplace pensions are not likely to replace reliance on state pension for many.I’ve looked at it with couple of our employees, in it from the beginning of Auto Enrolment, One Guy currently mid 50’s, earning £30k using NEST - his pot today is just shy of £20k & if he continues contributing to it until ages 67 the projected pot including future contributions & investment growth is about £55k which I think would get about £200/mth (after over 25 years contributions at average wage ). There are loads of folk in his shoes on less money or similar & I foresee them opting to take lump sums & spend it pretty quickly.
It was actually pretty depressing reading as we considered it a great thing for our employees that would make a real difference to them, not previously having any form of pension provision, but in reality it’s F’all.
AndyAudi said:
Interestingly Mandatory workplace pensions are not likely to replace reliance on state pension for many.
I’ve looked at it with couple of our employees, in it from the beginning of Auto Enrolment, One Guy currently mid 50’s, earning £30k using NEST - his pot today is just shy of £20k & if he continues contributing to it until ages 67 the projected pot including future contributions & investment growth is about £55k which I think would get about £200/mth (after over 25 years contributions at average wage ). There are loads of folk in his shoes on less money or similar & I foresee them opting to take lump sums & spend it pretty quickly.
It was actually pretty depressing reading as we considered it a great thing for our employees that would make a real difference to them, not previously having any form of pension provision, but in reality it’s F’all.
This, obviously this is Pistonheads so everyone has a £1.5 million pension pot and is worried that is enough, but that is not the real world. My company pay in 4% a month, I would say a large percentage of people are not paying anything on top of this. Most of them are living paycheque to paycheque, there is no way they would willingly pay in 25% of their salary into their pension.I’ve looked at it with couple of our employees, in it from the beginning of Auto Enrolment, One Guy currently mid 50’s, earning £30k using NEST - his pot today is just shy of £20k & if he continues contributing to it until ages 67 the projected pot including future contributions & investment growth is about £55k which I think would get about £200/mth (after over 25 years contributions at average wage ). There are loads of folk in his shoes on less money or similar & I foresee them opting to take lump sums & spend it pretty quickly.
It was actually pretty depressing reading as we considered it a great thing for our employees that would make a real difference to them, not previously having any form of pension provision, but in reality it’s F’all.
4% is going to be worth the square root of f'all when they come to retire.
skinnyman said:
snuffy said:
No government will means test the state pension.
Currently we are seeing a massive campaign of disinformation about Labour's tax plans.
Also, endless think tanks/whatever are just spouting loony ideas because they think their new chums will listen to them. But these loonies are not the ones who would have to implement their fruit loop ideas, so they can be ignored.
But, the main thing is Labour love all this nonsense, because it softens people up to believe they will shortly be stealing all their money. When they only steal a bit more it, everyone breaths a sigh of relief that it wasn't as bad as they expected it to be.
It's classic behaviour.
This is what's happening, leak the worst possible scenarios so everyone gets up in arms about it, then the actual budget is bad, just not as bad as the leaks, and suddenly everyone is happy as "it could haver been worse".Currently we are seeing a massive campaign of disinformation about Labour's tax plans.
Also, endless think tanks/whatever are just spouting loony ideas because they think their new chums will listen to them. But these loonies are not the ones who would have to implement their fruit loop ideas, so they can be ignored.
But, the main thing is Labour love all this nonsense, because it softens people up to believe they will shortly be stealing all their money. When they only steal a bit more it, everyone breaths a sigh of relief that it wasn't as bad as they expected it to be.
It's classic behaviour.
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