Tax relief on pensions reduced

[robsti]

RichardD said:

Adrian W said:

I wonder how many people are putting more than £50000 per year in

5% of the population but 95% of Pistonheaders?

5% of population paying 50k into a pension! You are talking bk5!!!

[robsti]

musclecarmad said:

robsti said:

RichardD said:

Adrian W said:

I wonder how many people are putting more than £50000 per year in

5% of the population but 95% of Pistonheaders?

5% of population paying 50k into a pension! You are talking bk5!!!

final salary hits will prob hit me next year for example and i'm by no means a 'massive' earner - infact, far from it. I think i'm just going to retire to be a fitness instructor! much more fun.

it's the final salary people/defined benefit people that will get hit.

I thought you wanted to be a barman! and if they keep chipping away at the pension industry you will probably make more money as one!

[DonkeyApple]

Jinx said:

DonkeyApple said:

Most people don't have a pension because they are spending the money they should be putting to one side for old age on cars and other wastes that time will inform them they can't afford.

Other wastes such as: rent, food, gas, electricity, water, travel to and from work, council tax.....
So what should I not pay now to save for an old age? Do you think the local council will understand if I say "Sorry I'm not paying council tax as instead of funding your pensions I would like to fund my own?" ...

Why would rent, food, gas, electricity, water, travel to and from work, council tax be wastes? They are just the cost of living.

I don't understand how you class these costs as wastes akin to luxury cars etc?

[Lost_BMW]

RichardD said:

Adrian W said:

I wonder how many people are putting more than £50000 per year in

5% of the population but 95% of Pistonheaders?

Well, only those with Directorships and mapped BMW diesels . . .

[Bing o]

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

[Slaav]

On the subject of the £50K limit and how this is 'unfair'? HAve they not reintroduced an element of Carry Forward of unused previous allowances, thus allowing up to £200K in certain circumstances?

Also, as MCM said above, the current 'cap' is effectively £20K for 'new' contributions for high earners. For these chaps it is cracking news.

[DonkeyApple]

Bing o said:

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

Until after Christmas. I very much suspect that this 'hitting at the heart of their own electorate' is simply step one in laying the groundwork for what has to come in the new year and that is the nailing of the massive. It's unavoidable as that is where all thesavings are to be had.

[Dr Jekyll]

Surely if I arrange with my employer to increase my AVCs by say £200 a month, I'm effectively saying 'don't give me that £100 (less tax) in my monthly pay packet, hang onto it until I retire and pay me it then, again less tax.

If I don't get tax relief on pension contributions I'm paying tax when I don't receive the £100, then again when I do.

[RichardD]

robsti said:

RichardD said:

Adrian W said:

I wonder how many people are putting more than £50000 per year in

5% of the population but 95% of Pistonheaders?

5% of population paying 50k into a pension! You are talking bk5!!!

Did you notice the clown smiley or my message later on the first page to Fittster ?!

[Bing o]

DonkeyApple said:

Bing o said:

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

Until after Christmas. I very much suspect that this 'hitting at the heart of their own electorate' is simply step one in laying the groundwork for what has to come in the new year and that is the nailing of the massive. It's unavoidable as that is where all thesavings are to be had.

But you can only take so much off the benefit scum, plus a lot more people will be finding themselves unemployed when the public sector cuts hit private companies.

[F i F]

Bing o said:

DonkeyApple said:

Bing o said:

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

Until after Christmas. I very much suspect that this 'hitting at the heart of their own electorate' is simply step one in laying the groundwork for what has to come in the new year and that is the nailing of the massive. It's unavoidable as that is where all thesavings are to be had.

But you can only take so much off the benefit scum, plus a lot more people will be finding themselves unemployed when the public sector cuts hit private companies.

Plus the middle classes tend to apy their dues as in taxes, fines, take out insurance bla di bla, and don't take to the streets en masse like the French but just mutter "musn't grumble."

There does seem to be a viral campaign going round trying to get the message across of where the money goes and the reasons why we are in the mire. There also seem to be some particularly nasty ones against asylum seekers / economic migrants comparing their benefits to what pensioners get. Wonder who is behind that one?

[Jinx]

DonkeyApple said:

Why would rent, food, gas, electricity, water, travel to and from work, council tax be wastes? They are just the cost of living.

I don't understand how you class these costs as wastes akin to luxury cars etc?

Sorry I was implying that a lot of people don't have pensions because they can't afford one. With pay rises being a dim distant memory paying money into a pension fund is a luxury many can't afford (whilst ironically enough having to pay council tax of which a large proportion is someone elses pension )

[DonkeyApple]

Jinx said:

DonkeyApple said:

Why would rent, food, gas, electricity, water, travel to and from work, council tax be wastes? They are just the cost of living.

I don't understand how you class these costs as wastes akin to luxury cars etc?

Sorry I was implying that a lot of people don't have pensions because they can't afford one. With pay rises being a dim distant memory paying money into a pension fund is a luxury many can't afford (whilst ironically enough having to pay council tax of which a large proportion is someone elses pension )

Agree. It's how to quantify this though. I personally believe that most people don't have pensions because they are living for today and buying things they don't need.

Those who genuinely can't afford to put anything aside will be living a lifestyle whereby retireing solely on state pension is unlikely to mean a dramatic change of circumstances.

But drive down your average street with big mortgages, new cars, nice holidays, meals out and most won't have a pension. That is going to lead to a very serious change of lifestyle at a later date.

As I've mentioned in previous threads most people in this country seem to living the lifestyle of an 80's homosexual with HIV.

[Digga]

DonkeyApple said:

Jinx said:

DonkeyApple said:

Why would rent, food, gas, electricity, water, travel to and from work, council tax be wastes? They are just the cost of living.

I don't understand how you class these costs as wastes akin to luxury cars etc?

Sorry I was implying that a lot of people don't have pensions because they can't afford one. With pay rises being a dim distant memory paying money into a pension fund is a luxury many can't afford (whilst ironically enough having to pay council tax of which a large proportion is someone elses pension )

Agree. It's how to quantify this though. I personally believe that most people don't have pensions because they are living for today and buying things they don't need.

Those who genuinely can't afford to put anything aside will be living a lifestyle whereby retireing solely on state pension is unlikely to mean a dramatic change of circumstances.

But drive down your average street with big mortgages, new cars, nice holidays, meals out and most won't have a pension. That is going to lead to a very serious change of lifestyle at a later date.

As I've mentioned in previous threads most people in this country seem to living the lifestyle of an 80's homosexual with HIV.

Round here, orange people in white Audi's are becomming conspicuous by their numbers.

[DonkeyApple]

Digga said:

DonkeyApple said:

Jinx said:

DonkeyApple said:

Why would rent, food, gas, electricity, water, travel to and from work, council tax be wastes? They are just the cost of living.

I don't understand how you class these costs as wastes akin to luxury cars etc?

Sorry I was implying that a lot of people don't have pensions because they can't afford one. With pay rises being a dim distant memory paying money into a pension fund is a luxury many can't afford (whilst ironically enough having to pay council tax of which a large proportion is someone elses pension )

Agree. It's how to quantify this though. I personally believe that most people don't have pensions because they are living for today and buying things they don't need.

Those who genuinely can't afford to put anything aside will be living a lifestyle whereby retireing solely on state pension is unlikely to mean a dramatic change of circumstances.

But drive down your average street with big mortgages, new cars, nice holidays, meals out and most won't have a pension. That is going to lead to a very serious change of lifestyle at a later date.

As I've mentioned in previous threads most people in this country seem to living the lifestyle of an 80's homosexual with HIV.

Round here, orange people in white Audi's are becomming conspicuous by their numbers.

Why has the North taken one look at Essex and thought: I must copy that.

It used to be the bastion of common sense in this country and now seems to be the engine room for X-Factor, Nuts, More, teeth bleaching, anal bleaching, hair bleaching, orange skinned Miami Vice wannabes?

[DonkeyApple]

musclecarmad said:

Jinx said:

DonkeyApple said:

Why would rent, food, gas, electricity, water, travel to and from work, council tax be wastes? They are just the cost of living.

I don't understand how you class these costs as wastes akin to luxury cars etc?

Sorry I was implying that a lot of people don't have pensions because they can't afford one. With pay rises being a dim distant memory paying money into a pension fund is a luxury many can't afford (whilst ironically enough having to pay council tax of which a large proportion is someone elses pension )

99% of people could afford a pension if they wanted. The truth is that they don't want to be able to afford one.

They could live in a smaller house, go out less, drive a smaller car, stop buying £400 handbags, stop going on 3 flash holidays per year, stop spending so much at waitrose, stop buying £2,000 watches, stop with all the extravagant things.

The trouble is someone 'thinks' that if they earn £30k per year they should live in a detached house, have a new ish BMW, have sky TV, shop at waitrose and all the other rubbish.

this reduction to 50k doesn't really matter too much as you can't really complain if you can funnel 50k away per year into a pension. Final salary people will be hit as mentioned though.

I think it's a good thing and necessary.

What is the £50K? Is it taxed income or pre-tax?

[Lost_BMW]

Bing o said:

DonkeyApple said:

Bing o said:

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

Until after Christmas. I very much suspect that this 'hitting at the heart of their own electorate' is simply step one in laying the groundwork for what has to come in the new year and that is the nailing of the massive. It's unavoidable as that is where all thesavings are to be had.

But you can only take so much off the benefit scum, plus a lot more people are finding themselves unemployed when the public sector cuts hit private companies.

[DonkeyApple]

Lost_BMW said:

Bing o said:

DonkeyApple said:

Bing o said:

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

Until after Christmas. I very much suspect that this 'hitting at the heart of their own electorate' is simply step one in laying the groundwork for what has to come in the new year and that is the nailing of the massive. It's unavoidable as that is where all thesavings are to be had.

But you can only take so much off the benefit scum, plus a lot more people are finding themselves unemployed when the public sector cuts hit private companies.

Not welfare people but basic tax payers. They have to be squeased more at some point and I think this is all a build up to that.

[lauda]

Paddy_N_Murphy said:

Bing o said:

Seems the gloating about benefit cuts has ben hit with the reality that it's the middle income earners are going to get ttted for a lot of the previous government's largess.

Do 'Middle Income' earners put £50k away a year in their pensions ?

No, they don't. There is a lot of nonsense being spouted at the moment about the impact of these changes on normal middle class savers when in reality, they won't notice the difference. Even the previous example given about someone with long service in a DB scheme who gets a promotion and salary increase is slightly misleading as they would be unlikely to pay 40% tax on the whole value of the increase in benefit since you will be able to carry forward any unused tax allowance from the previous three years.

Tax reliefs for pensions aren't there to provide an opportunity for very wealthy people to squirrel away large amounts of money tax free. They are there to provide an incentive for people to save a reasonable amount of money, in a tax efficient way, in order to provide them with a reasonable standard of living in retirement. Having £50k to save in a pension in any given year or a pension pot worth £1.5m in total is the stuff of dreams for the vast majority of people in this country and I certainly don't have a problem with this revised legislation.

[robsti]

musclecarmad said:

robsti said:

musclecarmad said:

robsti said:

RichardD said:

Adrian W said:

I wonder how many people are putting more than £50000 per year in

5% of the population but 95% of Pistonheaders?

5% of population paying 50k into a pension! You are talking bk5!!!

final salary hits will prob hit me next year for example and i'm by no means a 'massive' earner - infact, far from it. I think i'm just going to retire to be a fitness instructor! much more fun.

it's the final salary people/defined benefit people that will get hit.

I thought you wanted to be a barman! and if they keep chipping away at the pension industry you will probably make more money as one!

anything that i can do abroad and be with nice young ladies will suit me mate!!

To true! the Tuscan Riviera for me!