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Post by mysty on Mar 15, 2023 21:55:44 GMT 1
If you have a million in your pension pot your goung to be even better off, if not no need to be worried you can get 11p of our next pint in the UK.
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Aardvark
Non-gamer
Living in soggy 22 and still wondering what's going on.
Posts: 1,592
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Post by Aardvark on Mar 16, 2023 11:07:56 GMT 1
Do I have to go to UK to claim my discount on the pint? I would be much more impressed if I could have my Winter Fuel Allowance back.
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Post by tim17 on Mar 16, 2023 13:31:08 GMT 1
If you have a million in your pension pot your goung to be even better off, if not no need to be worried you can get 11p of our next pint in the UK. Explain the first one mysty and for the second, that will only happen if the pub passes on the tax cut. |
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Post by jackie on Mar 16, 2023 16:14:33 GMT 1
If the aim was to encourage more consultants back to work why didn’t they just tailor doctors pensions instead of introducing a massive tax break for the very wealthy?
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Post by tim17 on Mar 16, 2023 16:28:32 GMT 1
I don't have an issue with raising the LTA but abolishing it completely only helps the very wealthy and is going to reduce the tax coffers by at least £1 billion a year, Labour have already said they'd reverse this so it will only be about for two years at most.
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Post by ForumUser2 on Mar 16, 2023 16:31:57 GMT 1
If the aim was to encourage more consultants back to work why didn’t they just tailor doctors pensions instead of introducing a massive tax break for the very wealthy? I think they are showing solidarity with the common people. Surely everyone can afford £60k a year pension contributions (just think of the tax deductions)? A pension pot of 3 or 4 million? Isn't that what we all have? |
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exile
Member
Massif Central
Posts: 2,188
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Post by exile on Mar 16, 2023 18:00:28 GMT 1
If the aim was to encourage more consultants back to work why didn’t they just tailor doctors pensions instead of introducing a massive tax break for the very wealthy? That sounds easy* but is I suspect rather difficult to do in terms of drafting unambiguous law (and quickly). * And I would also prefer that as a solution to the problem. |
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Post by mysty on Mar 16, 2023 21:18:43 GMT 1
If you have a million in your pension pot your goung to be even better off, if not no need to be worried you can get 11p of our next pint in the UK. Explain the first one mysty and for the second, that will only happen if the pub passes on the tax cut. No idea, on sky an expert said if you had a pension pot of 1million then it was a good budget for you. |
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exile
Member
Massif Central
Posts: 2,188
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Post by exile on Mar 16, 2023 21:58:57 GMT 1
Explain the first one mysty and for the second, that will only happen if the pub passes on the tax cut. No idea, on sky an expert said if you had a pension pot of 1million then it was a good budget for you. If you have £1m in your pension pot, any other savings you make will be being taxed at the highest rate (an assumption that if your pot is that big you will be on the highest tax rate.) The change means you can put as much into savings for your pension as you want and every penny put in will be discounted from your tax liability. |
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Aardvark
Non-gamer
Living in soggy 22 and still wondering what's going on.
Posts: 1,592
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Post by Aardvark on Mar 17, 2023 11:04:21 GMT 1
I have a newbie question regarding the terminology. Pension pot. Not having such a thing myself I assume this means someone who has one or more pensions apart from the state pension?
Point one. If someone has a load of dosh stashed away in some offshore tax haven, does this tax relief apply?
Point two. There is a lot of advertising on the radio recently by companys offering to consolidate all your pensions into one "pot" to be managed by them, and allowing a much easier facility to draw funds from it. I somewhere recall the traditional advice "Don't put all your eggs in one basket". Are people really that stupid these days?
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exile
Member
Massif Central
Posts: 2,188
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Post by exile on Mar 17, 2023 12:21:39 GMT 1
To gain tax relief, the pot has to be in an approved scheme. There are thousands out there and some of them may, for all I know, have assets in the Cayman Islands or similar.
Most people's pots are with their employer or former employer. After the Maxwell scandal the rules covering these were tightened up enormously. These funds - and the private ones as well - will usually invest the money in a wide range of investments, some high yield (but with a level of risk), some lower yield and relatively safe and some copper bottom safe but lowest rates (government bonds for example). So all of the eggs are no longer in the one basket - which is what Maxwell effectively did with his newspaper pensions.
ISAs are I believe the popular alternative to a company pension pot especially for the self employed but these were introduced after I left the UK so I have no detailed knowledge.
The advantage of putting all of your pension pots under one scheme is that if you have moved around a lot with your employment, you may have small amounts earning very little individually in a range of possibly small pension schemes that earn very little because the fees for managing the scheme take away much of the profit. It costs as much to manage a scheme with say 100k in it as it does a scheme with 50m.. So if the management fees are say 2.5k per year and the gross profit is 5%, then the 100k scheme earns 5k gross but after fees, only gets 2.5k put back into the pot. The 50m scheme earns 2.5m amd the 2.5k fees hardly touch the sides.
Is there a risk in doing this? yes. So choose a reliable company and not Robin and floggit ltd.
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Nifty
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Post by Nifty on Mar 22, 2023 15:32:34 GMT 1
Re the above, while not forgetting who is at the helm of the British decision making process.
Time to spend. But on what? I saved money for a rainy day. It concerns me that the current storm does not seem to be blowing over any time soon.
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Post by tim17 on Mar 22, 2023 15:51:10 GMT 1
Interesting aside that has just come out, Keir Starmer was very vocal in saying the change to the LTA is wrong yet when he stood down as DPP (Director of Public Prosecutions) he was granted a special 'tax unregistered' pension scheme which means he is exempt from paying tax on pension savings over £1 million. Hypocritical?
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exile
Member
Massif Central
Posts: 2,188
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Post by exile on Mar 22, 2023 16:08:56 GMT 1
Hypocritical?
That might depend on whether he has more than £1m in his pot or not. Your assumption seems to be that he has.
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Post by tim17 on Mar 22, 2023 17:14:22 GMT 1
Hypocritical? That might depend on whether he has more than £1m in his pot or not. Your assumption seems to be that he has. Who knows, the point is the ability is there for him to save 0000's in tax when he has already said that the party he leads will reverse the recent change thereby stopping everyone else from having the same benefit. I'm not making a judgement because his circumstances are unique but it doesn't look right and is the kind of thing the Tories have been quite rightly attacked for. |
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