Them 'gold plated' final salary pensions...

[AtW]

Exclusive: Middle class, white collar workers will lose thousands of pounds in what could be the biggest attack on public sector pensions to date

The Government is gearing up for a major raid on some of Britain's most generous pension schemes which could see doctors', teachers' and senior executives' retirement funds cut by more than a quarter, the Telegraph understands.

In private talks with industry, Ministers have floated plans to move savers with final salary pensions into a separate tax regime. They would then receive less generous tax perks than other savers.

The move, which last night received fierce opposition from public sector unions, would be the most radical attempt by any Government to water down so-called “gold plated” retirement benefits.

Although some senior, private sector executives would be affected, the biggest losers would be well-off public sector workers. Altogether more than two million workers could be hit.

Nine ways of improving your chances of retiring early

The move would be seen as dragging public sector pension provision back into line with the private sector, where such generous schemes have undergone cuts or been closed down altogether over the past 20 years.

Source: Government planning £7bn assault on 'gold plated' final salary pension schemes - Telegraph

Gideon is determined to outdo Labour in power to prevent them from being elected!

Indeed, it's so unfair that some people will get nice gold plated shares whilst the rest are being shafted by the Govt...

[centurian]

I am reading this differently. This is all part of the consultation to "strengthen the incentive to save", which is a warm and cuddly phrase for reducing pension tax relief for public and private sector.

Most commentators seem to think that the current marginal rate relief should be replaced by a flat rate relief.

Flat rate relief sounds so seductively simple. The problem is that is it horrendously complicated, especially for final salary schemes.

So it appears the latest idea - is to exempt final salary schemes from the changes, which means public sector pensions will be given a pass on the pensions tax relief cuts - despite being many times more generous than private sector pensions in the first place.

Hargreaves in talks with Treasury over DB tax treatment - Citywire

Of course the Treasury are "willing" to exclude DB pension pots - they all have DB pension pots themselves

Also I love this part

Any changes that seek to water down existing pension scheme arrangements for doctors are unacceptable and completely unnecessary

Of all groups of people, doctors probably claim more of the current pensions tax relief than anyone. The poll at the end of the article - when 30% said "Slash tax relief for wealthy savers" - do they realise that "rich" are the doctors.

[PurpleGorilla]

Just reform the pension rights for those under 40, and keep the rights for the boomers. Seems only fair.

[Intel]

Pensions are the most risky investment out there. You're sticking your money in an inaccessible pot with whichever government of the day must resist the temptation to steal. Not an easy task for a politician with their natural desire to stiff over the public at any cost.

The problem is that as people have realised it's all a load of b*ll*cks and diversified their retirement income plans the governments of the day have just changed their aim to grab that money as well (BTL mortgage interest relief etc.)

No matter what you do the government will take it off your hands. Might as well vote for Corbyn to get a welfare state, bench yourself, claim JSA and DLA under the pretence of having tourettes and swear yourself out of every enforced permie job interview....

[AtW]

Flat rate relief sounds so seductively simple. The problem is that is it horrendously complicated, especially for final salary schemes.

Fook this "simplicity" if it ends up costing more to the end user, unless they plan to have "simple" flat rate income tax. When it comes to taking money they use multiple tiers, but when it comes to providing relevant tax relief they don't want to give anything. Fookers.

P.S. Final salary pensions should have never existed.

[SueEllen]

Fook this "simplicity" if it ends up costing more to the end user, unless they plan to have "simple" flat rate income tax. When it comes to taking money they use multiple tiers, but when it comes to providing relevant tax relief they don't want to give anything. Fookers.

P.S. Final salary pensions should have never existed.

The idea of Final Salary pensions was that people lived up to 10 years after retirement.

Unfortunately now people live 30-40 years after retiring due to medical advances.

Luckily the current generation of teens and 20 year olds are obese and unfit so they shouldn't live long enough on average to claim any pension....