Pension Tax free lump sum could be a thing of the past.....

[buttons]

If this tax free lump sum is earmarked for a new motorhome then it could be the time to bring your retirement date forward...
http://www.dailymail.co.uk/news/art...-pensioners-scrapping-tax-free-lump-sums.html

 

[Clive and Kerri]

This could be worse than Gordon Brown's change which stole the tax refund on dividends earned by pensions companies, leading directly to the current pension crisis.

 

[Minxy]

This got me a bit concerned at first as although we don't work, we have not drawn any pension yet, either a lump sum or as a regular income (too young!) however the article does say:

The Chancellor is not expected to make the change retrospective, however, so tax-free lump sums already built up would be safe.

But Mr Webb warned: ‘The Isa approach would stop people building up any more tax-free lump sums on future pension savings.

‘Even for someone 10 years away from pension age this could have a big impact on their retirement planning.’​

So it would ONLY affect FUTURE PENSION CONTRIBUTIONS, not those which have already been built up, so for us it's not an issue (unless we chose to go back to work and contribute again ... no chance) but I can see how it would be a major worry for those who are still working and a fair way from being able to draw their pension.

 

[Tanya_and_Mick]

At least Dick Turpin wore a mask.......

 

[Paddywack]

Strange that it doesnt mention his plans to only allow basic rate relief on monies being paid into the pension pot which is also on the cards. How to encourage people to save what!

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[Tea Bag]

Hi.
Time to Google..... For advice lol. But who will believe it,after all thats said about the Daily Mail.
Tea Bag

 

[buttons]

Hi.
Time to Google..... For advice lol. But who will believe it,after all thats said about the Daily Mail.
Tea Bag

AOL have a better description but aol is sometimes difficult to open the link so I thought I would stick with familiar territory, at least members will believe what they read in the DM.

 

[Techno]

Mine and more is coming out next week so I don't care

 

[Just smiffy]

This got me a bit concerned at first as although we don't work, we have not drawn any pension yet, either a lump sum or as a regular income (too young!) however the article does say:

The Chancellor is not expected to make the change retrospective, however, so tax-free lump sums already built up would be safe.

But Mr Webb warned: ‘The Isa approach would stop people building up any more tax-free lump sums on future pension savings.

‘Even for someone 10 years away from pension age this could have a big impact on their retirement planning.’​

So it would ONLY affect FUTURE PENSION CONTRIBUTIONS, not those which have already been built up, so for us it's not an issue (unless we chose to go back to work and contribute again ... no chance) but I can see how it would be a major worry for those who are still working and a fair way from being able to draw their pension.

Don't bank on it minxy.... They change their minds like their expensis claims..!

 

[MC 55 FUN]

Grabbed my 25% tax free @ 55 when I retired - 2 years go

Only 9 years until I get my state pension . . . . unless they change the goalposts again

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[treetops1]

For some reason or other i got 27.5% when i got my tax free cash , didn't question it just took the money lol

 

[MC 55 FUN]

This could be worse than Gordon Brown's change which stole the tax refund on dividends earned by pensions companies, leading directly to the current pension crisis.

Nothing could be worse than that . . . other than another Labour Government within the next 100 years . . .

 

[Techno]

For some reason or other i got 27.5% when i got my tax free cash , didn't question it just took the money lol

Yes you can get the balance of your personal allowance included if not working

 

[The Wino]

All rumour if I was looking for money I would put capital gains tax on housing

 

[CeeJay13]

This would also affect us. I was sent this link to an article that would seem to represent the current concensus if a lot of people 'in the know'

http://www.telegraph.co.uk/finance/...-need-to-take-my-tax-free-lump-sum-today.html

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[buttons]

This would also affect us. I was sent this link to an article that would seem to represent the current concensus if a lot of people 'in the know'
http://www.telegraph.co.uk/finance/...-need-to-take-my-tax-free-lump-sum-today.html

Short-termism, it will all go tits up when our kids who wont themselves have adequate pension provision. Their inheritance will all but disappearing on our care home fees as we are all living longer.

Who is going to pay for the care of our kids when they need it? It won’t be cheap. They won’t have a property, they won’t have a pension and they are working for less so who will pay. I can see problems on the horizon…..

 

[stevec]

I hope I don't need to worry about this. Taking pension (and my lump sum) in July. 18 weeks and counting!!

 

[treetops1]

Got that info Andy , I received the 27.5% cash a couple of weeks after retiring.

 

[Chris]

And this from a Government who want us to make our own provision for retirement

So you pay in with money you have already paid tax on and then pay it again when its time to retire.

 

[tofo]

If this tax free lump sum is earmarked for a new motorhome then it could be the time to bring your retirement date forward...
http://www.dailymail.co.uk/news/art...-pensioners-scrapping-tax-free-lump-sums.html

Fished mine out when I gave up working at 60

I have just received an estimate on my state / company
Pension . I gave up a 1/4 payment at age 65
For state pension + 3/4 company pension
And drew my 25% out

Just had the figures in I will earn a very similar amount
In April as I earned previously
It did bother me 5 years ago not worried now

Unless major change in pension rules come in

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[buttons]

All rumour if I was looking for money I would put capital gains tax on housing

Capital gains tax is already charged on houses Wino. Would you like it to be charged double.....

 

[canopus]

Took voluntary severance and my lump sum and started drawing my pension from my final salary scheme aged 52 in 2002. Did some consultancy worked since then but jacked in completely in 2012.

Will be 65 in a couple of weeks time and looking forward to the government giving me something for once in my life - as Stevie Wonder would say.

 

[Techno]

Got that info Andy , I received the 27.5% cash a couple of weeks after retiring.

I'm paying some tax I don't care

 

[GJH]

And this from a Government who want us to make our own provision for retirement

So you pay in with money you have already paid tax on and then pay it again when its time to retire.

Occupational pension contributions are taken before tax. That's why a portion of the pot is taxable when taken as pension.

 

[The Wino]

Capital gains tax is already charged on houses Wino. Would you like it to be charged double.....

There is no capital gains tax on the house you live in a huge tax free windfall for those soft sutherners

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[Chris]

Occupational pension contributions are taken before tax. That's why a portion of the pot is taxable when taken as pension.

You get tax relief on the payment in , but isn't Osborne cutting that relief as well so the days of putting big lumps in with 40% relief (or whatever it is) are gone? I think the maximum contribution is going to be £10k a year, which for someone like me who hoped to increase his contributions when school fees etc stop, is a bit of a blow.

It looks like I will be a customer advisor in B&Q yet

 

[olley]

And this from a Government who want us to make our own provision for retirement

So you pay in with money you have already paid tax on and then pay it again when its time to retire.

Just the same as a standard savings account then.

Ian

 

[BusyBuilder]

I collected my ICI pension just this month, I was a pension trustee with Kvaerner Pension Fund for a few years when good old Gordon was in the Chancellors seat. No Gov't can be trusted, the allure of a huge tax take on pension tax free lump sums is too great, it will happen.
If you are anywhere near able to take your pension, then do so, I'm only 58 and self employed general builder/carpenter so not stopping work till I can no longer do it.
I was lucky to get a 6 figure lump sum which paid for my Hymer, what to do with the rest ?...now that's a good question, probably under the bed.

 

[buttons]

There is no capital gains tax on the house you live in a huge tax free windfall for those soft sutherners

Not tax free wino all property is liable for Inheritance Tax. Besides this, I have properties that will be liable for Capital Gains tax. So what more could we do in the south to appease you in the hinterland.......

 

[Camdoon]

They are unlikely to change the 25% tax free amount. The issue they have is that Higher Rate Taxpayers are putting shed loads of money into their pensions and not paying tax on it thus gaining 40%. They want to encourage lower paid to save more so tax relief is likely to be more tilted towards the average and taken from high earners. The DM source is a former Liberal minister who will be well out of the loop.

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