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Budget 2023

chorleythehord said:
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 OAP
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jakehake said:
Is it a defined benefit pension or defined contribution? As that would also change things.

If it’s Defined Benefit(which it doesn’t sound like it is due to the tax) then she’d maybe get a widows pension

If it’s defined contribution then if you snuff it she’d get it all or what’s left anyway, and if it’s in a pension it’s better than if it’s in a bank account as the pension keeps it out of inheritance rules (though you’d probably be under the limits). But either way don’t do anything rash.

Have you spoken to PensionWise or anyone? They may be able to help with some advice or at least to allay fears
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No ... Everytime I start to get interested and start reading the pensions I have then I tend to slip into a coma....But I'm going to have to obviously. The odd person I know that's had dealings with an advisor have all been told to consolidate them but that smacks of healthy commissions and set up costs to me so I've avoided them......... All I'm trying to do is avoid my money going up in the same puff of smoke that I go up in at Preston crematorium.. :)

Thanks for taking the time to reply fellas.... Very much appreciated. (y)
 
Meldrew's Ghost said:
What have the Lawn Tennis Association got to do with pensions?

Net pensions? Some are a bit of a racket (raquet)? Pensions advisors getting backhanders?
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You’re not taking this seriously MG , are you ??

I am exiting the building on May 26th, only 10 weeks to go ( not that I’m counting )
 
chorleythehord said:
Abolishing, or at least significantly upping the LTA is a wise move, as is getting rid of the ludicrous restrictions on higher earners saving for their pension.

Taxing the life out of people simply encourages them to either pack up and retire or go live somewhere where they are not taxed so highly. Its basic common sense , but is has needed a crisis in the health service with hospital consultants retiring as quickly as they can, and just about every GP working 4 days a week because they pay too much tax if they work the fifth day to bring this message home. There are plenty of other people like that but not as high profile as your GP.

One of the reasons why this conservative government will deservedly get trounced at the next election is that they have not been very conservative. We have the highest tax burden in living memory and they have spent the past 12 years looking at ways to further piss off the country's 'best customers' for tax - just shrinks the economy and reduces the tax take.

I was hopeful that they would apply similar logic to the corporation tax rate - at least a plan to reduce it back to 19% over a reasonably short period - but doesnt seem to be a sniff.
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What an utterly perverse world we live in. Huge inequality in pay and failure to train sufficient younger professional.such that we need to incentivise older retired doctors back. Your solution is back to front. Seniors are paid far too much generally in my own experience (especially in defence). . Pay them what theyre worth, train properly and theres no issue of early retirement and pensions. For Gods sake, dont let them take more in pension, thereby further robbing the younger generation
 
Liberation said:
No ... Everytime I start to get interested and start reading the pensions I have then I tend to slip into a coma....But I'm going to have to obviously. The odd person I know that's had dealings with an advisor have all been told to consolidate them but that smacks of healthy commissions and set up costs to me so I've avoided them......... All I'm trying to do is avoid my money going up in the same puff of smoke that I go up in at Preston crematorium.. :)

Thanks for taking the time to reply fellas.... Very much appreciated. (y)
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Yeah remember the difference between Financial Advisors who do have a benefit to getting you to move it whereas pensionwise aren’t advisors as such but more to explain the options you have and the implications rather than offer advice.
 
Portishead said:
What an utterly perverse world we live in. Huge inequality in pay and failure to train sufficient younger professional.such that we need to incentivise older retired doctors back. Your solution is back to front. Seniors are paid far too much generally in my own experience (especially in defence). . Pay them what theyre worth, train properly and theres no issue of early retirement and pensions. For Gods sake, dont let them take more in pension, thereby further robbing the younger generation
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Glad it's not just me that chorley irritates.
 
jakehake said:
Yeah remember the difference between Financial Advisors who do have a benefit to getting you to move it whereas pensionwise aren’t advisors as such but more to explain the options you have and the implications rather than offer advice.
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That'll be my next step Jake....Thanks
 
Portishead said:
What an utterly perverse world we live in. Huge inequality in pay and failure to train sufficient younger professional.such that we need to incentivise older retired doctors back. Your solution is back to front. Seniors are paid far too much generally in my own experience (especially in defence). . Pay them what theyre worth, train properly and theres no issue of early retirement and pensions. For Gods sake, dont let them take more in pension, thereby further robbing the younger generation
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It’s not about “ letting them take more in pension” , and for what it’s worth I believe public sector pensions are ridiculously over generous , particularly for top earners whose pensions should be capped - they should stop paying in or accruing more at a certain level.

In fact ideally I would scrap the whole of the public sector pension , and increase basic pay for them all so employees can make a personal choice - do they want to take home more now or save for an earlier or better retirement. The current scheme seems to me to be a massive ponzi scheme , and as you say it’s the younger doctors paying for the early retirees. The problem with ponzi schemes though is when they stop , the whole thing collapses and I can’t see a way they can get out of the current public sector pension system.

It’s about people like your GP being taxed and deducted so much past a certain level of earnings that they can’t be arsed working for it, so they do a 4 day week and accept less gross pay. And retire and take their over generous pension as quickly as they can.. That can make no sense to anyone.
 
chorleythehord said:
It’s not about “ letting them take more in pension” , and for what it’s worth I believe public sector pensions are ridiculously over generous , particularly for top earners whose pensions should be capped - they should stop paying in or accruing more at a certain level.

In fact ideally I would scrap the whole of the public sector pension , and increase basic pay for them all so employees can make a personal choice - do they want to take home more now or save for an earlier or better retirement. The current scheme seems to me to be a massive ponzi scheme , and as you say it’s the younger doctors paying for the early retirees. The problem with ponzi schemes though is when they stop , the whole thing collapses and I can’t see a way they can get out of the current public sector pension system.

It’s about people like your GP being taxed and deducted so much past a certain level of earnings that they can’t be arsed working for it, so they do a 4 day week and accept less gross pay. And retire and take their over generous pension as quickly as they can.. That can make no sense to anyone.
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My understanding is that lifting the cap on the LTA allows the wealthiest to draw even more pension in a final salary scheme. Theyve found an incentivisation argument to benefit the wealthiest thats arisen due to their failure to maintain a properly functioning health service such that all staff are demotivated and are leaving.

As for the rest Arbeit macht frei.
 
chorleythehord said:
It’s not about “ letting them take more in pension” , and for what it’s worth I believe public sector pensions are ridiculously over generous , particularly for top earners whose pensions should be capped - they should stop paying in or accruing more at a certain level.

In fact ideally I would scrap the whole of the public sector pension , and increase basic pay for them all so employees can make a personal choice - do they want to take home more now or save for an earlier or better retirement. The current scheme seems to me to be a massive ponzi scheme , and as you say it’s the younger doctors paying for the early retirees. The problem with ponzi schemes though is when they stop , the whole thing collapses and I can’t see a way they can get out of the current public sector pension system.

It’s about people like your GP being taxed and deducted so much past a certain level of earnings that they can’t be arsed working for it, so they do a 4 day week and accept less gross pay. And retire and take their over generous pension as quickly as they can.. That can make no sense to anyone.
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It makes sense to me.

My pension arrangements enabled me to retire early and then be able to work doing stuff I've always wanted to do and be productive in the "wellbeing, " industry.

Made money for nobody but I like to think I've been able to help others out.

I've advised my kids, wherever it's available, to take jobs in sectors where the pay might be lower but to be able to retire as early as possible.

Life's too short to be worrying about GDP.
 
Well I got lost of the entire thread at the word “pension”. Never had one (except state and I got that without any input). Reading this, I think it’s just as well, I would have been baffled by economics.
 
raefil said:
It makes sense to me.

My pension arrangements enabled me to retire early and then be able to work doing stuff I've always wanted to do and be productive in the "wellbeing, " industry.

Made money for nobody but I like to think I've been able to help others out.

I've advised my kids, wherever it's available, to take jobs in sectors where the pay might be lower but to be able to retire as early as possible.

Life's too short to be worrying about GDP.
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If you remove the LTA, doctors who have enough service to draw an early pension that would have exceeded the former cap, will suddenly have an even greater incentive to retire early. Theyve just had their early pension increased at a stroke. Ok, they could carry on working in a demotivating service and slowly accrue a further increase against that increased sum. But more likely theyll think, well I was thinking of leaving anyway and now Ive been handed a windfall to my pension overnight. I would hope theyve thought of this to prevent an unintended expensive consequence
 
Portishead said:
If you remove the LTA, doctors who have enough service to draw an early pension that would have exceeded the former cap, will suddenly have an even greater incentive to retire early. Theyve just had their early pension increased at a stroke. Ok, they could carry on working in a demotivating service and slowly accrue a further increase against that increased sum. But more likely theyll think, well I was thinking of leaving anyway and now Ive been handed a windfall to my pension overnight. I would hope theyve thought of this to prevent an unintended expensive consequence
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That money would have been better used if invested into training.

Bottom line, though, they're using the doctors as an excuse to funnel more wealth upwards.
 
wld said:
Nice to see the wealthy being allowed to save as much as they want for their pension pots whilst they are clearly putting the feelers out to further increase the state pension age. They haven’t announced it today but the fact it was rumoured means it’s coming.
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What they could have done is said to the less wealthy to encourage them to stay in work is that you would be exempt from paying national insurance contributions if you have paid your full years to qualify for a full state pension. But this lot only can compute with the greedy mindset of some of the wealthy that they mix with. Pitiful.
 
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