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Are you now drawing down against your pension to eat into the capital?
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Jay P
Posted: 18 February 2025 14:13:54(UTC)
#40

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MBA MBA;334901 wrote:
Robert D;334847 wrote:
Keith Clunk;334844 wrote:
Reading this thread ..

If Rachel Reeves' intention was to get 'dead money' out of idle pensions and back into the economy to work at getting the country moving and growing again then she may have pulled a blinder.

Either that or it's her blind hatred of people who have saved and accumulated for their retirement futures and the futures of their families and loved ones. The benefit to the country is just some unintended consequence of her actions. I'd hazard a guess at the latter.
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For some reason people seem to get very emotional about inheritance tax, even those who have no likelihood of paying it - which is 96 per cent of the population.

Any change is likely to create (very wealthy) losers who will make a lot of noise (natch) but really what's the problem? Personal pensions are a vehicle to provide an income in retirement - not a means of avoiding IHT. It was absurd and needed to be closed

You're right though that this "dead money" is likely to be recycled back into the economy. Hats off to Rachel.


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youre quoting the 96% fig because you've heard it before, and its based on the past, when house prices were low. Thats now changing. I just dont feel i have any affinity to the UK any longer. My city, London has morphed beyond belief. Im not sure the UK is even a country, feels like a collection of people who happen to be on this island for economic reasons

....And dead eyed comrades who rejoice at the idea of barging aside a grieving family to rifle through the pockets of the corpse.
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Dexi on 18/02/2025(UTC), Keith Clunk on 19/02/2025(UTC), L.P. on 19/02/2025(UTC), Guest on 01/03/2025(UTC)
L.P.
Posted: 19 February 2025 16:10:17(UTC)
#45

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After aborting the procedure after the October budget, we have now applied to take the tax free sums from our pensions.

I believe we had a ‘stay of execution’ in October but I am pretty convinced that she will be coming for us in March.
Reeves needs to raise more money but has nowhere to turn other than the odd percentage or two on online betting (although her chum ‘Denise Coates’ has donated enough to the Labour Party and RR’s private office for this not to happen).
Cutting spending is not an option for this government and defence spending is about to go through the roof as Starmer prepares to put ‘boots on the ground’ in the Ukraine.

I would never forgive myself if we lost even one penny of our hard earned to a change in the tax free allowance when I could have prevented it.

Proceeds will be reinvested in next years ISA allowances and general trading accounts for now.
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6 users thanked L.P. for this post.
Newbie on 19/02/2025(UTC), Jay P on 19/02/2025(UTC), MBA MBA on 19/02/2025(UTC), Mick H on 21/02/2025(UTC), Guest on 21/02/2025(UTC), Jon.Snow on 22/02/2025(UTC)
Newbie
Posted: 19 February 2025 17:11:20(UTC)
#41

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Keith Clunk;334844 wrote:
Reading this thread ..

If Rachel Reeves' intention was to get 'dead money' out of idle pensions and back into the economy to work at getting the country moving and growing again then she may have pulled a blinder.

Doubt it very much.
It will get recycled into ISA's / LISA's / Next Gen Pensions / House Deposits for Next Gen / School Fees

Very little actually will go to the UK economy.

Even if people spend on themselves - it will be Foreign trips / Foreign food / Foreign luxury goods (cars, watches, brands etc) - I have nothing against foreign goods or foreigners.

My issue is that we don 't produce anything, we have no jobs, we pay people to stay at home, we have a lot of civil unrest and as time goes by it will increase and the major cause is the rising inequality.

What we need is jobs, production, goods and services the world wants / needs. Countries need energy, they need weapons, they want social media, they want affordable housing - they "all" want to pay less tax, whether you are in the village in the middle of the African jungle of living in Monaco.

Whlst I agree that pensions should not be IHT vehciles, taxing pensions to the hilt is not the solution either, it will just get swirled around the same people and placed where the wealthy hang out; and if they spend it then that wealth leaves the UK shores (that is if the wealthy have not done so themselves).

Real Jobs, Real Education, Real Products and Services (not just banking, law, politics) is what is actually needed.
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4 users thanked Newbie for this post.
Jay P on 19/02/2025(UTC), L.P. on 19/02/2025(UTC), Guest on 21/02/2025(UTC), Jon.Snow on 22/02/2025(UTC)
Mick H
Posted: 21 February 2025 10:21:42(UTC)
#46

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L.P.;335031 wrote:
After aborting the procedure after the October budget, we have now applied to take the tax free sums from our pensions.

I believe we had a ‘stay of execution’ in October but I am pretty convinced that she will be coming for us in March.
Reeves needs to raise more money but has nowhere to turn other than the odd percentage or two on online betting (although her chum ‘Denise Coates’ has donated enough to the Labour Party and RR’s private office for this not to happen).
Cutting spending is not an option for this government and defence spending is about to go through the roof as Starmer prepares to put ‘boots on the ground’ in the Ukraine.

I would never forgive myself if we lost even one penny of our hard earned to a change in the tax free allowance when I could have prevented it.

Proceeds will be reinvested in next years ISA allowances and general trading accounts for now.



I'm not sure anything will happen in March, surely it would be political suicide given the statement below.

"The Chancellor remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission."

https://www.gov.uk/government/ne...orecast-on-26-march-2025

That said, I have just turned 55 and have immediately initiated a TFLS withdrawal of the majority of my DC fund. I will use the money to pay off the mortgage when it's up for renewal in about 1.5 years. It does give me a short term tax on interest headache, but like yourself I didn't want to risk losing the benefit altogether on the whim of an incompetent amateur economist.
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Guest on 21/02/2025(UTC), Jay P on 21/02/2025(UTC)
jonathan rowe
Posted: 21 February 2025 15:29:51(UTC)
#47

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The one thing stopping RR cutting TFLS are doctors in the NHS

Even though she would love to get her hands on decades of careful saving & working weekends in my case, the one thing stopping her are senior doctors cutting hours or retiring early
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1 user thanked jonathan rowe for this post.
Jay P on 21/02/2025(UTC)
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