So what is in it for any of us.I'm a pensioner now don't receive much interest for the bit of savings we have.Got some money in isas some shares left.
Is the budget any good for people in work and is the economy really picking up or not.?
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Budgets are all smoke and mirrors, they never make much difference for the average folk.
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>> Budgets are all smoke and mirrors, they never make much difference for the average folk.
Hate to disagree, but some budgets in the past have screwed me royally. One that doesent do that is a good un in my book.
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>> Hate to disagree, but some budgets in the past have screwed me royally.
>>
The joys of being more affluent than average. They can't take what you do not have.
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>> >> Hate to disagree, but some budgets in the past have screwed me royally.
>> >>
>>
>> The joys of being more affluent than average. They can't take what you do not
>> have.
no but in the past they have tried to get you down to the level of having nothing.
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We have just received our "benefit" (State Pension) notice for the next financial year.
In the same post we received our council tax bill for the next financial year.
Our state pensions have a modest increase. :-)
Our council tax bill has a, somewhat more than modest, increase, :-( due to (1) a rise in basic tax due, (2) coupled with a reduction in means tested council tax benefit - because our state pensions have increased.
Still - it's a modest net increase.
The State giveth and the State taketh away.
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Not helpful to my pension planning, I have just this week put my SIPP into capped drawdown to preserve my annual allowance so I can add to my pension if I earn anything in the next year or two.
Now I find I am bumping against the lifetime allowance so I probably can't.
I won't have a gigantic pension, though I realise these things are relative. Suffice to say the LA of a million quid is now barely enough to buy a £25,000 annuity with inflation protection. There are people who get more than that in benefits.
Why it is necessary to have both annual contribution allowances and lifetime benefit allowances I don't understand. It's possible to bust the lifetime allowance just through investment growth.
Any benefits taken outside the allowance are taxed at 55%.
Almost all our household retirement income other than state pension will be in my name because the boss as been a stay at home mum. If it was more evenly split it wouldn't be a problem
I'll have to break it to her that we'll have to divorce so we can split the pensions to get under the allowance:(
I know I'm better off than many, so I don't expect much sympathy, but I feel that I am only in this position because I have done what I consider necessary for a worry-free old age, without depending on the state, by not indulging in expensive holidays, regular new cars, and eating out.
What I can't understand is why 40% tax relief hasn't been touched. Even though I've had some benefit from it, I have always thought it was unfair that the lowest paid got the least benefit and incentive to save in a pension.
I suppose nobody would get elected now if they changed that; a bit like telling the truth and the NHS and doing what is necessary there, political suicide.
Some very mixed messages here. A lot of people will just think they should just spend whatever they can get their hands on as soon as possible. The unintended consequences of all this fiddling will be interesting.
Last edited by: Manatee on Wed 18 Mar 15 at 23:15
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If a Labour government had revealed today's Budget, it would have been lauded to the skies.
Think about it.
I know quite a few Labour supporters and virtually all of them have said that measures such as the First Time Buyers incentive and the right to use your pension pot as you wish rather than lose it if you die early, have done far more for them than any Labour government might have done..:-)
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I can't remember any budget ever making a noticeable difference to me. I'm not claiming none of them made any difference, just that I didn't notice any. I'm a bit stupid about things like that. Don't do accounts or anything. Can't be a***d. There are advantages to being broke all the time now. When I used to earn money the tax was lopped off before I got it. Just as well because I would have spent it.
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>> I won't have a gigantic pension, though I realise these things are relative. Suffice to
>> say the LA of a million quid is now barely enough to buy a £25,000
>> annuity with inflation protection.
Like you say it's better than most, I doubt most will have to worry about hitting the LA limit. Mind you I know of someone that has just retired on an £85k a year pension, god knows what their pension pot is.
>> Almost all our household retirement income other than state pension will be in my name
>> because the boss as been a stay at home mum. If it was more evenly
>> split it wouldn't be a problem
Not sure if it's too late for you but I think you can set up a pension in your wife's name that way you get more money out of 'your' pot tax free as income when you start claiming it.
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>> Not sure if it's too late for you but I think you can set up
>> a pension in your wife's name that way you get more money out of 'your'
>> pot tax free as income when you start claiming it.
If she has no earned income she would be limited to contributing £3600 gross pa.
It would take a few years to transfer half a million at that rate.
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Looks to me as if we will be better off almost exactly by my annual car insurance, so I'm going to take that as bunce.
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The pound is stronger anybody going on holiday in Europe.Nothing to do with the budget just a weak Euro.
We aren't affected that much by the budget like you A.C . I said no or very little interest on our savings best thing is to spend me thinks.
The N.H.S is the one people will vote on in my opinion.The difference between Labour and Conservatives.But that is a long discussion how to run the N.H.S. for everybody's benefit.
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>> >> The N.H.S is the one people will vote on in my opinion.The difference between Labour
>> and Conservatives.But that is a long discussion how to run the N.H.S. for everybody's benefit.
>>
>>
>>
I don't think the NHS will have that much effect, people are beginning to realise that shoving ever increasing amounts of their tax at it doesn't make much difference and it needs some drastic reforms to the way it is run instead. Labour have the Albatross of the Welsh NHS round their necks in any case. Aside from that, I think recent surveys have shown that people are broadly satisfied with the service they get.
Good old George has left us few remaining smokers alone this time though, hats off to the man for that.
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>>I don't think the NHS will have that much effect, people are beginning to realise that shoving ever increasing amounts of their tax at it doesn't make much difference and it needs some drastic reforms to the way it is run instead.>>
Quite correct. A bottomless pit.
At least the Tories have always attempted to retain the basic concept whilst seeking to minimise the inevitable waste caused by such a monolithic organisation. More is less at the moment...:-(
Remarkable how NHS staff continue to do their best at all times despite the ever increasing pressure on them. Time to get rid of the unwanted tiers of management and divert the money to real patient care.
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>> If she has no earned income she would be limited to contributing £3600 gross pa.
>> It would take a few years to transfer half a million at that rate.
>>
Good job I'm not an IFA then ;-)
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It's a bit odd in a way. You can transfer assets to your spouse without CGT, IHT and so on, but you can't give them any of your pension fund unless you get divorced.
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>> I but you can't give them any of your pension fund
>> unless you get divorced.
>>
or die
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With £1m in your pension pot and potentially 50 years to live, it's nonsense to think that an annuity is the sensible thing. You *want* to be exposed to the uncertainty of the markets, not protected from it.
Invested in the stock market, you should be able to get a yield of 2.5% easily (25k p.a.), and probably 4% (40k p.a.) which also allows for capital growth that should index link it. And then when you die the total £1m capital sum (index linked) is *still* available (yes, they clobber you on tax when you pass it on, but it's still *something* to pass on). Of course, what the law says in 2065 is anybody's guess; compare today's with 1965...
I am not an IFA, nor qualified to advise on pensions, but I know what I'd do...
Totally agree, don't see why you need an annual cap, and an overall cap; they're basically taxing good investment decisions. IMO the overall cap will be eliminated within the next decade as they realise this. Equally, post-election, I doubt the 40% tax relief will stay (and certainly not the 45%/62.5% relief if you're in that uncomfortable band where you lose your personal allowance).
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I do not plan to buy an annuity, I'll have enough secure income to live on as long as inflation doesn't go absolutely ballistic (think 1973-81) . I was just illustrating that if you want a secure income in the same ballpark as the average wage, then you need a million quid in your pension fund, which I find mind boggling.
In fact my SIPP goes into capped drawdown today, which preserves my annual allowance in case I earn any more money in the next couple of years (ho ho, no use now), Ballsproofs my lump sum, and at least caps the usage of the Life Time Allowance (LTA) from that and uses a %age based on the current LTA.
My best pension is a final salary one for which the Normal Retirement Age is 65 (in just over 3 years for me). The impact of that on the LTA will be 20 x the initial annual pension. But I can't even calculate what that will use because it uprates with RPI; and there is a DC section in that scheme with a money purchase pot in it that I hope will grow a bit more; and I have a Section 32 policy that matures at the same time with a GMP ahead of the annuity it would buy, otherwise I would have moved it into the SIPP by now. That will presumably count as the fund value and I don't know what that will be.
Under the existing limit I should be OK so I need to watch out for and capture the protections for existing savers that have yet to be announced.
I started chucking all my spare money into pension in March 2009 after the crash, knowing I was under pensioned when the closure of the final salary scheme was announced and expecting some fairly severe inflation (I still am, it will come). I didn't think it would be possible to over succeed.
Perhaps I've been overly prudent, something that is now being discouraged!
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>> With £1m in your pension pot and potentially 50 years to live,
50 Years?
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The March budget. - Old Navy
