Author Topic: pensions and taxes  (Read 485 times)

FI4good

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pensions and taxes
« on: September 22, 2017, 02:45:54 PM »
An article on our current pensions freedoms and a vision of the future, an interview with one of the architects of the recent and maybe future pension changes. 

"A means tested senior citizens pension, granted at age 80" was the line that made my eyes stand out on stalks .

https://www.professionalpensions.com/professional-pensions/news/3017920/michael-johnson-i-did-not-foresee-consequences-of-freedom-and-choice

There is also an article in the same publication saying that tax relief on pensions might well change in the next budget.

Part of me is thinking as things change i will start to change the blend of my investments away from pensions and ISA's or a WISA.

As my wish is to retire in the EU and not return, post tax liquid cash and assets not locked away behind government restrictions and regulations appeals .

i'd be interested in any opinions .

Cheers FI4
« Last Edit: September 22, 2017, 02:47:32 PM by FI4good »

frugledoc

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Re: pensions and taxes
« Reply #1 on: September 23, 2017, 12:57:22 AM »
Talk of a means tested state pension is dumb:
1) Higher earners pay far more national insurance (from post tax income) for the benefit.
2) Pensioners who are higher rate tax earners are taxed more on their state pension, as it is taxable

As far as I am concerned, the state pension is already means tested.

Even though I won't needed, I despise the thought of paying my NI for it, and then not actually getting it, just to pay for the financially feckless.

The guy in the article is a typical "expert" who is so wrapped up in their own ideas that they have lost touch with reality.

The WISA does seem like a good idea, but allowing instant access to employee contributions will mean people will just take that back out again.

It seems the problem is that that they are desperately trying to incentivise the "millenial" generation to save, but don't really know how to do it.
« Last Edit: September 23, 2017, 01:07:11 AM by frugledoc »

skip207

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Re: pensions and taxes
« Reply #2 on: September 24, 2017, 02:38:03 PM »
They need to stop confusing people, especially younger people.  KISS.

LISA, SIPP, WPPS. SP age etc etc all needs sorting and making as simple as possible to actually get young people interested in saving.