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      03-05-2021, 03:44 PM   #67
pmgreenwood
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Originally Posted by isleaiw1 View Post
Well remember that whilst pensions are tax free on way in they are taxable on way out, whereas an ISA is taxed on way in (comes out of net pay) but tax free on way out. Now whilst 40% or higher tax relief exists then pension has the benefit, but ISA has more flexibility and if they equalise the tax treatment then ISA will be clearly advantageous if you expect to pay tax in retirement....
Yes and the Treasury would really like the one-off cashflow gain of moving Pensions taxation to the Isa type structure. A few years ago we were only one week away from that swop happening but Gov lost nerve.

There is an advantage to an "intelligent" Government of the current system. taxation on "retirement income" is collected for a particular generation when that generation is most cost to Government i.e during its later years.

I would not be shocked to see a consultation document on Tax Consultaion day March 23rd proposing the swop in tax structure for new contributions. the problem issue would be those defined benefit schemes that continue accrual as employer contributions not tied to individual members.
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      03-05-2021, 03:54 PM   #68
isleaiw1
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Originally Posted by pmgreenwood View Post
Yes and the Treasury would really like the one-off cashflow gain of moving Pensions taxation to the Isa type structure. A few years ago we were only one week away from that swop happening but Gov lost nerve.

There is an advantage to an "intelligent" Government of the current system. taxation on "retirement income" is collected for a particular generation when that generation is most cost to Government i.e during its later years.

I would not be shocked to see a consultation document on Tax Consultaion day March 23rd proposing the swop in tax structure for new contributions. the problem issue would be those defined benefit schemes that continue accrual as employer contributions not tied to individual members.
Lets be honest, its bloody expensive giving 40% / 45% / 60% tax relief on contributions for those that earn the most and if Labour ever got their act together I am sure it would disappear (and putting my miners son hat on it probably should).... since I hit 55 I decided that pensions were a bit rubbish as getting another job at the same level would be hard so I may want some savings to use before retirement, so I put in normal contributions (company plus me) at 15% of my pay and then I put the net equivalent of another 12% into my ISA..... gives me flexibility and savings.
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      03-06-2021, 09:46 AM   #69
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What did I miss

Turns out money is free and possibly might be growing on the money tree in my study.

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      03-06-2021, 01:55 PM   #70
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What did I miss

Turns out money is free and possibly might be growing on the money tree in my study.

It was like a scene from Lou and Andy - you turn your back for a second...
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