Quote:
Originally Posted by Damien
|
You may be right, they may not touch the 25% lump sum. But the damage is done, which is down to their negative vibes and warnings months before a budget that it's going to be a bad one.
I could understand a further left Corbyn type government hitting pensions out of spite, but I think Starmer and his cabinet are just showing that they are a bunch of amateur politicians.
If they want to move to the model of a means tested old age pension, they have shot themselves in the foot. They have prompted pension investors to take their money out of schemes that were most likely offering a good rate of return, and instead putting that money into accounts offering poor returns or splashing the cash on foreign holidays etc.
I have read many of the news articles over the past few months regarding pension tax relief, and it's frightening that how many people in the comments sections clearly have no idea how it works. I have seen comments where people have said they shouldn't be taxed because they pay tax via PAYE, and when you try to explain to them it's like banging your head against the wall.
I have also seen comments regarding salary sacrifice and the higher rates of tax relief, where people have said things such as "Why should the rich get more money from the government".
If they introduce a flat rate, which I think would more likely be 30%, I think that would result in people in their 50's and 60's who have built up reasonable pension pots will just reduce their hours. That would then run the risk of these people falling short in funds when they fully retire.
I'm currently negotiating a contract for 2.5 days a week, because I have a feeling that it will be hardly worth working 5 days a week. I wish the budget was out of the way instead of the doom and gloom that Starmer and Reeves has caused.