The Budget 2014 - 12:30
- Thread starter Cosimo
- Start date
My guess is the only service people who die with anything over the threshold are posh Tory voting officers with already rich families, gotta keep the core voters happy
Never seen someone with such a big chip on their shoulder.
Soldato
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Pretty turd there hasn't been a sniff of stamp duty reforms this time round
Must be saving it for nearer election time.
Joke, the way stamp duty is worked out is just ridiculous, why they can't work it out the same way they work out income tax is beyond me.
Exactly. Lots of speculation it would be coming in this budget but looks like it'll be the next one!
Soldato
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I foresee the next great financial scandal. The banks/insurance firms etc will be salivating over getting their hands on people's pension pots. Cue lots of miss-selling again and pensioners finding out they have lost a large part of their pension through excessive management fees etc. If they had wanted to do anything for the pensioners they should have limited the current management fees charged in the UK, which is twice that charged in the US. This would have given pensioners £thousands. That would also have reduced the benefit bill as the biggest part goes to pensioners who have insuffient means.
I'd have thought the biggest winners would be the cruise companies - Harold and Hilda work hard until they're 65, take out their modest pension in cash, spend it all on a 5 star round the world cruise. State picks up the bill for the rest of their lives.
It was never going to be a big shake up budget. They'll wait fir the next one, just before the elections. To do a final vote pusher budget.
All in all though, looks like a reasonably sensible budget. Bigger tax free threshold and promote saving. Need to read up on the pension thing.
This is a MASSIVE change to the pension/retirement market.
On the surface, it's a disaster waiting to happen. Allowing pension savers to take more money out of their accumulated funds without facing punitive tax charges does run the risk that more savers will outlive their pension funds and become dependent on the state in old age.
Can you imagine giving people the option to lift £50k of their 50k pension pot all in one go?? Carnage ahead.
More than £3bn was wiped off shares in the insurance sector; leading annuities providers including Legal & General, Aviva, Standard Life and Prudential saw sharp declines. Partnership, the specialist pensions provider, fell more than 40 per cent.
The reforms mean that hundreds of thousands of people retiring each year will have the freedom to take savings built up in a defined contribution pension as a cash lump sum, subject to their marginal rate of tax, instead of turning their savings into a guaranteed lifetime income in the form of an annuity.
But the pensions revolution triggered immediate warnings that it may be sowing the seeds for a future crisis where some pensioners fritter away their lifetime earnings – or lose them in ill-judged investments
On the surface, it's a disaster waiting to happen. Allowing pension savers to take more money out of their accumulated funds without facing punitive tax charges does run the risk that more savers will outlive their pension funds and become dependent on the state in old age.
Can you imagine giving people the option to lift £50k of their 50k pension pot all in one go?? Carnage ahead.
More than £3bn was wiped off shares in the insurance sector; leading annuities providers including Legal & General, Aviva, Standard Life and Prudential saw sharp declines. Partnership, the specialist pensions provider, fell more than 40 per cent.
The reforms mean that hundreds of thousands of people retiring each year will have the freedom to take savings built up in a defined contribution pension as a cash lump sum, subject to their marginal rate of tax, instead of turning their savings into a guaranteed lifetime income in the form of an annuity.
But the pensions revolution triggered immediate warnings that it may be sowing the seeds for a future crisis where some pensioners fritter away their lifetime earnings – or lose them in ill-judged investments
Permabanned
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1p reduction in tax on alcohol. Lets celebrate, now i can finally afford that car i always wanted.
Funny that it always goes up at a much higher rate than it comes down.
Funny that it always goes up at a much higher rate than it comes down.
There will be a few ill advised or foolhardy people squandering their pension pot. But the example given would attract high income tax if it was taken in one year. 75% of 50K would atract tax and at a high rate.
This gives the opportunity for people to use their pension pot without having to risk an annuity and all the charges and the risk of dying early and losing its benefit.
With the coming universal flat rate of pension, there will not be a top up for people who do not have savings. Pensioners will have to budget as well.
To be able to draw down the full amount at say 5k per annum to add to the £10 to 15k state pension or invest it as they see fit is a nice solution.
I am not really concerned about the crocodile tears of annuity providers. This will also tie in to the government plans for everyone to have a works pension and put it on a level footing with other forms of saving for retirement.
(age 61 and counting)
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Lucky that it has come down at all - What did you expect; a 50% reduction on BWS!?!?
Anything above a zero increase is a win.
Our household will be approx £320 a year better off after the new budget measures come into effect from next month.
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If you are living at your parents and saving for a deposit, you could easily do so.
Soldato
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I will be very interested to see how this functions for govt sector workers who do not have a 'pot' so to speak, but have a BS pot of lies instead.
I assume it will just continue to work in the old way.
I 'think' I like the change. Need to read more about it.
Goverment sector workers will have to stick with a defined benefit scheme if the new rules come into force.
I.e they are planning on banning ANY transfer from a DB scheme to a DC scheme expect under exceptional circumstances.
Ridiculous really when you think they are giving people the right to do what they want with personal pensions under the new rules but then saying on the other hand - public sector workers can't transfer?!??!
How about letting people do what they want with their money?
Also who cares (apart from shareholders) about insurers loosing market capital? They are in the industry of risk. Glad I sold my Aviva investment when I did.
LOL who would have thought that a party full of millionaire old Etonians would be so in touch with what the common man looks forward to in his spare time - drinking and gambling. http://www.bbc.co.uk/news/uk-politics-26658742
What does their education and financial background have to do with running the country? What does the opposition bench look like?