There are some interesting proposals in there. What caught my eye, as someone who retired in my 50s because the pension cap was about to smack me in the face, is the decision to finally acknowledge that the pension cap is too low and that it encourages people to retire early. Whether the changes will be enough to encourage early retirees back to work is debateable, but it might keep plenty in work. In my case it probably wouldn't have had any impact; the pension cap was a good excuse to put my feet up and do the square root of fuck all.Some interesting rumours already at either ends of the spectrum. I imagine most are more keen on the support for cost of living like energy bills, fuel and childcare etc.
Budget summary: Key points from Jeremy Hunt’s 2023 Budget
Chancellor Jeremy Hunt is announcing new economic measures - here's what you need to know.www.bbc.co.uk
There are some interesting proposals in there. What caught my eye, as someone who retired in my 50s because the pension cap was about to smack me in the face, is the decision to finally acknowledge that the pension cap is too low and that it encourages people to retire early. Whether the changes will be enough to encourage early retirees back to work is debateable, but it might keep plenty in work. In my case it probably wouldn't have had any impact; the pension cap was a good excuse to put my feet up and do the square root of fuck all.
They were told that reducing the LTA would have exactly these consequences as they merrily chopped the allowance year on year. Odd that the advice of those who understood this stuff was completely ignored. Having to change tack to clean up the shit show they created isn't a good look
I can see it’s given you a lazy lob on
He's just trying to court controversy.
We have been served notice.
Let this be your final warning love
Retired from teaching last November, personally. Now working in Motor insurance, nice office, no stress, enjoying life.There are some interesting proposals in there. What caught my eye, as someone who retired in my 50s because the pension cap was about to smack me in the face, is the decision to finally acknowledge that the pension cap is too low and that it encourages people to retire early. Whether the changes will be enough to encourage early retirees back to work is debateable, but it might keep plenty in work. In my case it probably wouldn't have had any impact; the pension cap was a good excuse to put my feet up and do the square root of fuck all.
Back to my financial advisor and pensions expert Jake
............... May I ask you a simple question?............... If I had a hundred grand in a pension and a ridiculous tax quote to cash it in would I now be better off?Back to my financial advisor and pensions expert Jake
And just to caveat you are just about at the end of the tax year so even splitting some money either side of that date would make more sense than taking a single hit from a pure tax perspective
I.E taking £50k at end of March and same mid-April would still give you £25k tax free but the amount added to your tax year earnings would mean you’d add £37.5k to this tax year and £37.5k to next year so you’d still pay 40% on some, just not as much as if you took it in a single tax year
Your pension pot will, in most circumstances, pass to your wife free of all tax if you snuff it before age 75. As Jake said, you would be mad to cash your 100 grand in. Use a bit of it to either fund a slightly early retirement (again will be tax free) and then take say 5-7 grand a year out of it to top up your OAPIt does and I used 100k for simplicity ( for me ).......... The major thing that gnaws away at me is that I have at least another 7 years to work and if I became ill and snuffed it suddenly then the wife/family would get next to nothing so I'd rather have it in my bank account even at a stupid rate of tax ( which I didn't pay in the first place to be fair )
They seem to have us all ends up and it seems to be one hell of a gamble. Sorry for the daft questions but you've read it right and I know and understand absolutely fuck all about pensions as you may have realised by now.
Is it a defined benefit pension or defined contribution? As that would also change things.It does and I used 100k for simplicity ( for me ).......... The major thing that gnaws away at me is that I have at least another 7 years to work and if I became ill and snuffed it suddenly then the wife/family would get next to nothing so I'd rather have it in my bank account even at a stupid rate of tax ( which I didn't pay in the first place to be fair )
They seem to have us all ends up and it seems to be one hell of a gamble. Sorry for the daft questions but you've read it right and I know and understand absolutely fuck all about pensions as you may have realised by now.
