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View Full Version : Wealthy given five-month 'window' to save into pensions before cuts to tax relief



AtW
28th October 2015, 02:39
" Middle-class savers have been told to top up their pensions while they still can after George Osborne hinted that he could cut tax breaks for the wealthy next year.

The Chancellor indicated that major reforms to pensions taxation would be announced in the Budget, which takes place annually in March.

Experts expect the Government to end the current system that ensures savers pay no income tax on the first £40,000 a year put in pensions. Under today's rules, a quarter of the fund can be taken tax-free in retirement but the rest is subject to income tax.

The 90-year-old system, which costs £50 billion a year, is said to favour wealthy people who reclaim large amounts of income tax while in work and pay reduced rates in old age.

It is likely to be replaced with a less generous incentive for higher earners. The money could be used to boost saving among the young and ease the pressure on public finances. "

Source: Wealthy given five-month 'window' to save into pensions before cuts to tax relief - Telegraph (http://www.telegraph.co.uk/finance/personalfinance/pensions/11959076/Wealthy-given-five-month-window-to-save-into-pensions-before-cuts-to-tax-relief.html)

How very dare you to save for pension tax free?!?!? :mad

Apparently that favours the wealthy people... :laugh

It will be very interesting to see what happens with the ponzi scheme of pensions once these "wealthy" middle-class people will no longer save for their pensions.

Zero Liability
28th October 2015, 07:30
The definition of 'wealthy' and 'rich' is as fluid as politicians need it to be. And it'll usually vary before and after an election. When the real problem is that they cannot control their spending, especially when dangling it as a bribe for people to vote for them.

MarillionFan
28th October 2015, 07:38
Was all part of my retirement plan this. Put the full amount in each year of 40k and claim back some tax. Already irked that a few years ago it was 50k and a few years before that unlimited up to the amount you earned in a year. So if you earned 250k, you could get all that lovely tax back. As a contractor I never bothered, as a permie who pays too much tax this was a great idea.

So thanks George, all these old grey haired middle classed people who were able to build great pension pots versus anyone now who wants to save is fecked.

As AtW says, money will not go into pensions at any where near the same amount now, so fecking both the stock markets and people saving for pensions.

Long term timebomb.

It's not as if anyone on tax credits was going to be saving was there.

darmstadt
28th October 2015, 08:07
Remind me, who voted Tory again? :laugh :tongue :laugh

AtW
28th October 2015, 13:33
Remind me, who voted Tory again? :laugh :tongue :laugh

I did...

:frown