2014 BUDGET

[Penelope]

Cancelled the proposed autumn fuel duty rise too.

[matone]

Great news on pensions ,I`ll certainly not be buying any annuity now.

[krugerandsmith]

At least now you are able to put all the isa allowance into a cash isa.Instead of just half the amount as previously.

 

And still receive nothing because the interest rates are so low. ...... They are allowing people to cash in their savings instead of putting it into an annuity but they will be taxing most of it .... surprise.... surprise.

[krugerandsmith]

could have been worse

 

Being the sixth richest nation it could have been a ruddy sight better.

[aris]

 

And still receive nothing because the interest rates are so low. ...... They are allowing people to cash in their savings instead of putting it into an annuity but they will be taxing most of it .... surprise.... surprise.

 

Which brings in the question - where are the advantages of saving into a pension if you're going to be taxed anyhow?

[aris]

If you're curious to know where our money goes, it is public information:

 

http://www.ukpublicspending.co.uk/breakdown

 

[krugerandsmith]

Great news on pensions ,I`ll certainly not be buying any annuity now.

 

Then you must be prepared to pay 20% tax on most of it .... Money which you have already paid tax on.

[aris]

 

Then you must be prepared to pay 20% tax on most of it .... Money which you have already paid tax on.

 

Mhh, no pensions payments are not taxed. What is happening here is that the taxation is just deferred.

[Kes]

 

Then you must be prepared to pay 20% tax on most of it .... Money which you have already paid tax on.

Not necessarily, directors of businesses pay no tax on dividends to pension funds so only taxed once. Contributions to pension funds are usually before tax.

[krugerandsmith]

 

Mhh, no pensions payments are not taxed. What is happening here is that the taxation is just deferred.

 

Quite right stand corrected.

[overandunder2012]

 

Being the sixth richest nation it could have been a ruddy sight better.

it can always be better

[aris]

 

Quite right stand corrected.

 

That has always been the argument for saving into a pension - it is tax efficient. To my eyes, it is slowly starting to be a big rip-off.

[hogey]

As I see it its good for us oldies.( some of us )

I am due to retire soon and its great news I do not have to buy an annuity with my pension pot that I have worked almost 50 years to collect.

Under the old system I could have taken 25% lump sum tax free and then buy an annuity with the remains .To have a pension of 5k a year you need to invest 100000k.Pretty poor I think.

Now I think I can still take my 25% tax free and the rest I can take in a lump sum and pay 20% tax on this .

Its a much better deal as far as I am concerned .

 

I know that there are a lot of people who will not benefit from this but the money used to change the private pension system dos not come from the countries taxes.

[overandunder2012]

a facebook special

 

[norfolk dumpling]

SWMBO happy as she is due to get her NHS pension soon. Not a big pot and my final salary pension more than enough for our needs so I feel a new gun coming my way. Trying to keep really healthy as state pension 3 years off for me and 5 years for the boss so with our mortgage due to finish soon after we will be very well off. My part-time job will have to go as this will put me into higher rate tax. What will I do with all that time and money - fish and shoot??

[old rooster]

It is fandabidosi for those of us who have been funding pension plans throughout our working lives, the old annuity or miserably slow draw down system really screwed the people who had funded their pensions and the annuity providers were really coining it in. Shares in annuity providers took a bit of a bashing yesterday.

 

Taxation wise pensions are a good option for higher rate tax payers as a load of the 40% taxed income can be shoved in the pension tax free.

 

Always seemed a certain irony in forcing people to go the annuity route or 25% tax free lump sum and a tiny percentage annual draw down on the remainder when it is their hard earned money in the first place. If they spend it all before they have popped their clogs they will become more of a burden on society perhaps but it is very unlikely they've been much of a burden throughout their working lives so maybe it isn't that unjust?

 

Like the increased ISA allowance too.

[amateur]

Too ruddy late for those of us retired on annuities that panned out much worse than the optimistic forecasts given to us when the pensions salesmen signed us up

[AVB]

As I see it its good for us oldies.( some of us )

I am due to retire soon and its great news I do not have to buy an annuity with my pension pot that I have worked almost 50 years to collect.

Under the old system I could have taken 25% lump sum tax free and then buy an annuity with the remains .To have a pension of 5k a year you need to invest 100000k.Pretty poor I think.

Now I think I can still take my 25% tax free and the rest I can take in a lump sum and pay 20% tax on this .

Its a much better deal as far as I am concerned .

 

I know that there are a lot of people who will not benefit from this but the money used to change the private pension system dos not come from the countries taxes.

Or a better option would be to take the 25% and then draw down against the remaining whilst remaining within your annual tax free allowance.

 

So take £10k pa tax free.

 

I am going to bung as much of my annual comp as i can afford into my pension from now on until hopeful retirement in a few years.

[aris]

I'm thinking many people nearing retirement - particularly higher rate earners will be bunging as much as they can into their pensions now - knowing they can get it back at retirement at a much lower tax rate. Sort of a reverse savings scheme.

Edited March 20, 2014 by aris

[JustJon]

If we can take our pensions anytime, anyway does that mean I can take my full amount out as a 30yr old and put it as a Mortgage deposit ?

[old rooster]

If we can take our pensions anytime, anyway does that mean I can take my full amount out as a 30yr old and put it as a Mortgage deposit ?

 

Not sure but I think the age you can start drawing the pension is 55

[edwardian]

The new savings plan for the over 65s sounds good, and probably is if you haven't had to spend all your savings just to survive.

What Osbourne needs to do is to give retired people a pension they can survive on without dipping into savings for every day expenditure.

[old rooster]

The biggest problem is trying to balance revenue raised against expenditure and it ain't going to happen any time soon, although this lot have done their level best to put right the catastrophe resulting from the lunatic behaviour of the last lot.

 

It is a fine balancing act trying to drag as much cash as possible from the rich while not making our country unattractive for them to live in at the same time. The loony left will always try to portray the "rich" as an evil bunch who look down their noses at the plebs but it isn't really the case, many of them have worked darned hard and taken risks with their own money to get where they've got, many are fairly philanthropic in their outlook but overall I can't see why it is fair or reasonable to financially batter anybody just because they make a few quid more than the rest of us.

 

That said I'm not sure why, as majority tax payer owned companies, some of the banks aren't told what they can and can't do as far as paying staff and awarding bonuses.

 

We were always taught as kids to put a bit by for a "rainy day" and it didn't work out to be too bad a plan overall, Bliars disgusting crew did their level best to change that concept to one where everybody should live on unaffordable levels of credit and we've seen what that inevitably results in!

[four-wheel-drive]

There are lots of people who over there life have had the odd pension but never earning enough to pay into a decent pension plan or being lucky enough to have a government/council job that payed a pension so that they may well end up with a pot of money that would only give them a few pounds per week and if they need to have pension credits etc they will loose that anyway so for those people it would be good if they could cash.

 

If in the end it only amounted to only one or two thousands it would be more use to them in a lump sum I was only talking to someone the other day and he was in this position and he said that the bloody pension was more trouble than it was worth both for him and the extra paperwork that it made for the powers that be it probably cost them over twice what he got just sending forms back and forth.

[four-wheel-drive]

The biggest problem is trying to balance revenue raised against expenditure and it ain't going to happen any time soon, although this lot have done their level best to put right the catastrophe resulting from the lunatic behaviour of the last lot.

 

It is a fine balancing act trying to drag as much cash as possible from the rich while not making our country unattractive for them to live in at the same time. The loony left will always try to portray the "rich" as an evil bunch who look down their noses at the plebs but it isn't really the case, many of them have worked darned hard and taken risks with their own money to get where they've got, many are fairly philanthropic in their outlook but overall I can't see why it is fair or reasonable to financially batter anybody just because they make a few quid more than the rest of us.

 

That said I'm not sure why, as majority tax payer owned companies, some of the banks aren't told what they can and can't do as far as paying staff and awarding bonuses.

 

We were always taught as kids to put a bit by for a "rainy day" and it didn't work out to be too bad a plan overall, Bliars disgusting crew did their level best to change that concept to one where everybody should live on unaffordable levels of credit and we've seen what that inevitably results in!

I am not a big fan of any of them but I do not like people who just blame Bliar Brown and there chums never forget that Cameron and his bunch would not have been any better and in some ways they could well have made things worse with further deregulation of the Banks that was what they wanted not what they should have been doing regulating them more.