Hi David, Indeed. Policy can often be a case of giving with one hand and taking with the other. Is there any of the possible changes that you are particularly concerned about for 30th October budget?
Let's certainly hope not. The fact that they have mentioned and go all in on the triple lock numerous times on their website would make it extremely embarrassing. As such, I do think the triple lock will remain. Some positives atleast 🧮
We already pay tax on our pensions, something which I don’t think we should, leave us alone for gods sake, we’ve paid tax all our working lives, and it’s about time we had a break from it!!
Well second pensions were taken out before tax was, so no one paid tax on them from the start. It was a cunning plan by them to get more out of you when you receive this pension
Brace yourself the triple lock Starmer say's will stay, well he could very easily change his mind, using this imaginary crisis that he is building on in his head. Starmer care's not a bit that we pensioners paid in all our working lives, and paid TAX again to do it. he would quite happily give it to his boat friends, mostly young men looking for a hand out from a soft touch like the Labour party
Not on the first 25% or on the first £12570. And no NI atall, plus no CGT or IHT on DC pensions. As Labour ruled out rises in income taxes, business taxes & VAT to fund their short term spend, spend, spend policies, pensions & investments are an obvious place to raise new revenues. That it will wreck long term incentives to invest & save for your old age is something they'll ignore till it's too late.
@@BenzkneesPension savings are more protected in law than they used to be so at least unscrupulous businesses can’t just take them. I had mine taken when a US firm declared bankruptcy in this country. What should have been a monthly payment of circa £400+ is now £38. I wouldn’t have got that but for the Pension Protection Fund which managed to grab some money from the business. Much safer for pension savers now.
@@arthurdixon5890 - The Pension Protection Fund is only for DB schemes, which these days is restricted largely to feather bedded people in the public sector. And it costs pensioners a lot of money, having £39bn in reserves levied from eligible pension schemes. It'd be better if everyone was in self-managed DC schemes that didn't need layers of red tape regulation & PPF levies.
Well the only thing they have guaranteed is the triple lock (and I don't entirely trust them on that). Everything else is so vague that they can weasel out of it by saying they didn't promise it.
At least they have guaranteed that. It's something. I would like to hear more from Labour on how they want to grow the economy in this term, or create greater efficiencies within existing costs. More like a business plan that most businesses make.
Pensioners pay a huge amount of tax in the United Kingdom, and if some of the rumoured changes are true, they may well assume be paying even more tax. Which of the rumoured changes are you most concerned about if any?
@@cameronjamespensiontransfer Although I am 74 I do still work a 40 hour week. I had my best private pension ‘stolen’ by a US firm who declared bankruptcy in the UK. The POF give me £38 per month (taxed of course as unearned income). The thing is pensioners plan for retirement based on known costs and pension income. Costs have gone through the roof for all citizens and the triple lock should help rebalance things. But the autumn budget should clarify if they are changing things more.
Hi Arthur, credit to you for still being gainfully employed. Was this through choice, and you enjoy working, or was it rather forced upon you after the US firm pension issue? Indeed, as a financial adviser, we can only advise people on what is the current law and legislation. Which is why so many of my clients are feeling very frustrated about the possibility of there, being large changes just years before their retirement date.
@@cameronjamespensiontransfer Thank you for your comment, I still have a mortgage due to mid life divorce, which hasn’t helped. I believe in our society and still wish to contribute. I have worked since 1967 and paid tax since then. So I guess it is all of the things you say. Off to work now. Enjoy your day…
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement. Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
I completely agree; I am in my mid 50s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
@@williamDonaldson432 This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
Finding financial advisors like Annette Marie Holt who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Annette has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
A friend of mine told me many years ago “Never trust Labour, they’ll make you poor”. He was right. Particularly Starmer,who really seems to hate pensioners. He probably regards us as unproductive, even though most of us have worked and payed taxes all of our working lives.
Thanks for your comment John. Why do you think he seems to hates pensioners? Is it just a coincidence that they are also the generation from which Labour might be able to apply more direct taxes on things like 25% tax free cash?
@@cameronjamespensiontransfer Starmer likes the poorest pensioners who qualify for Pension Credit. He can pay them some benefits and they then vote Labour. Gordon Brown was the first one to start pilfering private pension funds when he introduced a tax on dividends and I’m surprised he didn’t scrap or reduce the 25% TFC. But I am quite sure Starmer and Reeves will have no such scruples. They don’t like pensioners having money they can’t tax. In fact they don’t seem to like pensioners who have saved any money at all.
@@cameronjamespensiontransfer He doesn't hate pensioners, he just doesn't care. They are not one of Labour's core voting demographics. I'm not saying that all pensioners vote conservative, that would be ridiculous, just not enough of them vote labour to make a difference in an election.
Yes, lots of comments re. Pension Credit. Yeah, Gordon Brown, what can we say? During 1999-2002 Gordon Brown as the Chancellor of the Exchequer he decided to sell basically half of the UK's gold reserves in auctions. 395 tonnes of gold sold for a total of $3.5 billion. I don't even want to know what it would be worth now 👀 The 25% TFC is certainly getting numerous rumours. I think it would be extremely harsh on Pensioners, who have abode by the rules, and specifically planned regarding the 25% tax-free cash. I have so many of my clients calling me. Unfortunately, we will not know until the autumn budget!
I hear your point of view. It's also relatively low-hanging fruit for them. For example, removing the 25% TFC from someone with say £200K in a pension pot is unlikely to put that person or their family into poverty. They will "just" be £50K worse off than before. And will ultimately likely still survive and get by, but by having to reduce their comfort and retirement spending. Which is arguably not fair if they have planned for the past 10-years to that goal and retirement spending.
What they don't say is the worry. Will they means test the pension, will they raise the tax bands, will they tax the tax-free sum? Will they means test the right to free prescriptions? Will they bring forward the increase in retirement age? Will they means test free bus passes?
The tax bands will probably remain frozen, and possibly be extended for a longer period. The tax free cap might be lowered, the next retirement age increase is too close to move but they might bring forward the next one. Prescription charges only affect England, but they could increase the age limit in line with the state pension age. Bus passes, who knows? One quick win is to scrap the higher tax band relief for contributions, in my view this is a dead cert for the next budget and will be active in the next financial year.
Thanks for your input. What we can be certain of, is that it would likely be a mixture of some of the concerns everyone has. Ultimately, they believe they need to increase taxes, and it will always be a loser and winner situation for different tax payers.
aluk i bet everyone in the country is worried to death , especially pensioners. Do you know aluk i like you have gone through a lot of the things, they could do to people in this budget and my God, God bloody help us. Your comment is absolutely 1000% right.
The same Gordon Brown who, as the Chancellor of the Exchequer, decided to sell about half of the UK's gold reserves in auctions. Totalling 395 tonnes of gold, sold for $3.5 billion? What would that be worth now 😭
If Starmer wanted to help the economy, he would stop illegal immigration and send back all those illegally in our country because we taxpayers are forced to pay for these people. They should be supporting themselves in their OWN countries. This would save an enormous amount of tax payers money for Starmer to give back to the Unions.
@@cameronjamespensiontransfer benifited by legal immigration. not illegal immigration. legal immigration, the immigrants worked and paid taxes, illegals don't pay taxes and scrounge from the state.
We have tried to be responsible and saved money and done the best we can with our pensions for our retirement but now these thieves are in power and are going to change the rules
Hi Jim, you are most very welcome. I do my best to try to make complicated things as simple as possible for people to digest. Look forward to producing my content for you!
Yeah right. Reform is a limited company trading as political party just so you know and Farage gets 50% for Reform ltd company shares from our taxpayers money and Tice gets 25% for shares from our taxpayers money and they pay 25% corporation tax to hmrc. Reform ltd company won't win seats to form a government . Farage can't be trusted
If only there were a party made up of some of the smartest business people in the UK. The unfortunate truth, is that those individuals can attract salaries far higher than what is on offer in the public sector. The majority of money for Prime Minister comes after their term. For example, Tony Blair.
@@cameronjamespensiontransfer I'd settle for people who are smart enough, they don't have to be business people, just people who know that a household's is not the same a country's finances. That investment in infrastructure, if done wisely pays dividends in the long term, that a healthy and broad middle class is good for the economy and great for stability, that people living in poverty will put huge stresses on social services and the NHS. That some things should not be privatised. That education is key to a country developing to a higher level.
Some great and valid points here. I guess I have always looked the beast of the role of running a Government (as it is a huge undertaking) and thought that the way some U.K.'s most profitable businesses are run would not be a bad way to try to run the Government. I could not agree more on the education point. In my line of work, I'm continuously educating people on areas of their finances which in my opinion, could have been covered off before they even left school.
It's certainly a difficult problem to solve. How it is best addressed is open to debate. Are there any countries in the EU who you think are doing a better job of immigration policies?
I would guess inheritance tax will change, pension under 75 death charges, and pension forming part of an estate. Lta won’t come back but tax free cash might drop. Tax relief might go to flat rate. Until we have certain changes, sit and wait, then make your move accordingly.
I could not agree with you more Gary! It is extremely dangerous to make financial planning decisions on speculation. Currently all the broadsheets and tabloid papers in the UK, are running alarming headlines that will get people clicking and clicking means paid ads for them. Some of my clients and Cameron James clients have been reaching out asking what they should do now to protect themselves from the labour autumn budget 🍂 Our professional opinion, is that clients should wait until the autumn budget and the dust settles, until everything is crystal clear. As even in the following weeks after the autumn budget, it may still not be clear what exactly the legislation means, and legislation can at times be open to interpretation. The trustees, financial advisors, and Accountants, will work their way through the legislation, and then there will become a status quote as to what it means! I also have a feeling inheritance tax will change. As it fits in extremely well with the labour outlook, that those with the most should shoulder the biggest burden. Do you think the inheritance tax thresholds are going to change? Or just that the government will include more assets to form part of those thresholds? I very much agree on LTA, I think the legislation is extremely complicated for the new labour government to rewind. What amount do you think the government might drop the tax-free cash to?
@@cameronjamespensiontransfer With regard to IHT I think more assets will fall into the basket, and as for Tax free cash, the current limit is rather untidy and may drop to a round amount, although the suggested £100k might be too low. The £60k annual contribution could go back to £40k. Tax relief is hugely expensive and arguably benefits the better off, so losing the top rate wouldn’t hurt the working man. Interestingly none of the above would adversely affect me, so I would broadly be in favour.
Yes, we are very much welcomed the annual pension contribution increase from £40,000 to £60,000 in recent years. As this allows many people to benefit by contributing in an extra £20,000 each year, which can have a sizable impact across both themselves and their partner. The reality though, is that any individual who can afford to save £60,000 per annum, is not exactly struggling. So removing such benefits, would not hurt the working man, as you phrase it. What is your rough situation?
Hi Ray, so you think they will try to add the taxes on areas such as Inheritance tax? They may also have wealthy parents though so would also be hit with that!
@@LMC5690 Agreed but as they have already been targeted pensioners would be a good group to kick start resistance to this disgraceful measure if brought in.
Hi Dominic, As ever politicians speak with forked tongues, say one thing to get elected then change. Regarding LTA as the Government wants people to be independent and less dependent on the state pension they can leave the LTA but as the Tories did they capped the tax free amount. This could ( and probably will be) reduced with time. This will also impact those with DB schemes so they could face some resistance from the civil service etc that guides them in making policies. The state pension really needs a massive overhaul, for the average wage earner the individual and their employer pay far more over 40-45 years than they get out, and higher tax payers are being robbed and taxed to provide pensions for low earners, those receiving tax credits. It would be great now we have auto enrollment pension schemes with employers if instead of money going into NI contributions the money went into the individuals pension pot. Then there would for many be no need for a state pension, although transition would have to be managed. The triple lock only becomes a problem if wage rises or inflation ramp up, 2.5% is not a major rise per annum for the chancellor to budget for. Obviously the rises given to train drivers, the NHS etc that Labour has handed out don’t count in the 4% figure being quoted. Regarding auto enrollment this was just a start, they could do with setting the systems so that companies have to offer a minimum contribution match say 7% meaning 14% could be getting invested. This should ensure an even better pension for many, also remove the £600 approx a month that does not count in salary for % deduction. Also salary sacrifice needs to be offered, although this reduces NI contributions on both sides. Pensions as you know are not easy and become complicated when trying to cater for so many, I have 6 months until a DB scheme kicks in and I’ll be taking my 25% (again depends on what they do) then a year to wait for my state pension. Currently 64 retired and using DC schemes and rental income so I also don’t want to see tax free amount in dc schemes to be impacted heavily although mine is a relatively modest amount, for many this lump sum is a once in a lifetime opportunity to have a readily available cash lump sum to spoil themselves with
OK I'm now at my computer 💻 Could not agree more Guy! Just look at what the Labour government said, when the Conservative party first introduced the LTA changes. They went straight out and made strong and bold statements about reinstating it. They then gradually backtracked, until they made a recent statement, suggesting that they would not be repealing it. Which was relatively predictable, given the extremely complex nature of LTA, and the sheer amount of work that would've been involved from the Conservative party in removing it. The capping of the tax-free amount to the former/standard LTA of £1.073M was extremely smart from the UK government. As otherwise, UK pensions would've opened themselves up to massively being taken advantage of. Regarding the state pension, it is certainly true that moderate and high tax earners get an extremely raw deal from the UK government. It would be interesting to know how many multiples some individuals have made in comparison to others, to also get a full state pension at retirement. That is classic redistribution of wealth, by ensuring those who can't afford to pay, support those who cannot afford. Which is open to discussion on its advantages and drawbacks. Swapping contributions and money going into individuals pension pots instead of NI contributions would almost certainly mean tens of millions of UK people would enter retirement with a much more stable position. Which would certainly mean their reliance on the state pension would be far lower. What the impacts of that would be on services, such as the NHS, might be unimaginable, though! I think one of the biggest crimes with salary sacrifice and pension contributions, is that employees are not well or sufficiently educated by their employers or by the government. Many of my clients, had no idea how much more value and contributions they could make to their employer-based pension scheme, until they took out a regulated advice with me. I guess, from an employers' perspective, not all employers want to highlight all the financial benefits available to their employees, which is understandable when their legal duty is often to their shareholders. TFC - I agree, if the government were to entirely remove the 25% tax-free cash, more formally known as a pension commencement lump sum (PCLS), I think millions of people would feel extremely frustrated and begrudged. As they will possibly have been planning for years, on the expectation that 25% would be tax-free at age, 55, or age 57, from 2028.
How do you intend to tax the work shy in this lovely plan an enormous amount of tax payer’s money goes on those who won’t work and why should they when they can stay home on benefits some getting more per month than those who hold up the NHS I don’t mean the doctors and nurses etc put all the others without the whole system would collapse.
@@user-ns4hm5nh6s sadly this is one of the problems no politician ever seems to mention. We live in a a country where lower paid can get assistance via universal credit but being in work impacts what help they get. There is a section of society who have no ambition to try and work, they are almost generational unemployed and living off UC and know how and what to claim. A good portion of these certainly amongst males seem to have enough money for their drink and drugs issues, often part of the black economy or being involved in crime. Seeing local Crime reports it is amazing how many times some people are up before the magistrates and found guilty before any custodial sentence is imposed. Even those on suspended sentences get another “last chance” Our prisons are full and they have just released many who have served only 40% if their sentences because they need the room. These same long term unemployed get free credits for NI to grant them a pension in later life, yet someone on £30K pays more than twice in NI deductions what it costs to make up a missing year via the Government web site. Yet your pension is the same value? Madness does not even come close to describing some of the imbalance/unfairness of the current system
Hi Barry, Thanks for your message. His statement that “those with the broader shoulders should be the heavier burden”, is potentially a clear indication of what’s to come! What do you think will happen on the 30 October?
Thank you for your feedback, this is really interesting. I actually also think about this myself, but then I think maybe I just notice it because I’ve been doing the videos for so long! We did previously turn down the volume of the background music, you think it would be better and a better use it experience to entirely remove the music?
@@cameronjamespensiontransfer Awaiting the answer from @davesmale8602 I made a similar comment to this video - and yes the music should be removed entirely. You have a very nice speaking voice, you speak with clarity and your messages are clean cut and precise. Lowering the volume makes me try to identify the music genre, instruments etc. and then I lose focus on your message. Many thanks for making this channel!
Thanks for this feedback, it's extremely valuable. I can confirm that I have already sent this information over to my editing team, and at least the next few videos will be going live without any background music, for us to assess the results! Your help has been very much appreciated.
Well, let's wait and see how the pensioners are affected on 30th October. I think many working class people will continue to vote Labour, as they could not bring themselves to vote Conservative. What did you vote?
I have always voted Labour...thought this chap wouldn't let us down. I also think the last tory government had a lot against them, covid for one, but they gave us 80% towards our pay packet during that period and awarded us 500 quid for winter fuel payments.
Why does people who worked all there life paying tax and insurance for a government to pay benefits out of our pension to people who who have never worked and at the end off our working life we are worse off pension wise than the people who have been on benefits all ther life
@@cameronjamespensiontransfer Absolutely why should people who wouldn’t get a job and support themselves end up better off than someone who worked all their adult life paid taxes ,insurance etc end up poorer because they still have to pay for lay abouts.Its not right or fair.I wish we could elect some honest politicians who don’t expect pensioners to pay for their breakfasts and their heating bills when the pensioners are struggling to pay their own bills.
Pensions and the state pensions are income as when you work. Still having a tax code/allowances as if working WE pay tax, unless incomr is lower than the codr number
I understand your frustrations. The grass can often seem greener on the other side. I think many who may be unemployed and relying on benefits would snatch people's hand off to have worked more and contributed to society with taxes. Last-minute taxes on peoples pensions before people's retirement would not be the answer in my opinion though!
My concern, which may be unfounded, but they haven't ruled it out, is the introduction of a property tax. They seem obsessed with the idea that we purchased our houses for peanuts, without giving thought to our income at the time. A 1% annual tax on a £250,000 property looks mighty attractive.
This certainly couldn’t be ruled out. The current inheritance tax thresholds do provide a main residence allowance, but introducing something more directly to tax people on properties would certainly generate additional cash flow for the government. All eyes 👀 on 30th October
Found it! According to the UK Government, "In England you can get a bus pass for free travel when you reach the State Pension age. If you live in London, you can travel free on buses, tubes and other transport when you're 60, but only within London. In Wales you can get a bus pass when you reach 60" I remember my mum getting her bus pass, and it really gave her a second lease of life travelling into town and going shopping independently without the cost of fuel/parking and the general stress of driving. I think the bus pass is so important to society. This could be a massive shame and affect many millions of people if changes are made. www.gov.uk/apply-for-elderly-person-bus-pass#:~:text=If%20you%20live%20in%20England,pass%20when%20you%20reach%2060.
That could be as devastating to many elderly people as could most of the other (progressive) acts of malice. A village on the edge of town has already had it's bus services halved and the removal of passes will finish off most of the remainder. I use it occasionally and usually have to stand. For most people it is a lifeline and as the town centre is in an advanced state of decay, I can only imagine monthly shopping via supermarket vans supplemented by a cavalcade of Amazon/Prime vans serving the wealthier areas will be the order of things. Assisted suicide will be, at best, the verdict when the dastardly deed is done, followed by illegals being 'lovingly' gifted the vacant premises.
4. State pension will be means tested, if you have a sufficant private pension or savings you won't be entitled to a state pension. Just like they have with the Winter Fuel Allowance.
That would seem extremely unfair to all those people who have made long-term contributions, or possibly even topped up missing national insurance contributions to ensure they would have a full state pension. Where did you read that from? Do you think it will actually happen?
@cameronjamespensiontransfer I'm just speculating based on past performance. The justification regarding means-testing payment of Winter Fuel Allowance is that many pensioners don't need the money, and why should struggling taxpayers subsidise wealthy pensioners? Why would the same not also apply to the state pension if you have what is deemed to be a sufficient private pension or savings? As for the "paid in all their lives" argument, how is that working out for the Waspie women or anyone who now can't retire until 67/8 but expected to at 65. Do I think it'll happen? 25 years ago the UK had a debt to GDP ratio around 30%. What is it now, and how old are you/how long before you receive a state pension/how long are you hoping to receive one for? Better hope the government doesn't find any more economic blackholes between now and then!
I understand your point. MPs voting to cut winter fuel payment will have come as a massive shock to many. And so means testing the state pension then seems less unlikely. Do you think the current issues have been brought on by the Conservatives over the past two terms, or a cumulation of both major Government parties?
If the government wants to use pension pots for small businesses etc, then there has to be a guarantee in place, it must not be bailed out by tax payers if it fails.
Great comment, Paul. I feel extremely strongly on this point. Forcefully pushing everyone’s UK Pension asset towards UK businesses, is the absolute opposite of the Scottish philosopher Adam Smith and a free market economy. My personal opinion, is that money should flow to the equity markets which are most efficient in returning a good level of risk rated growth for that capital. If these small UK businesses were so good, surely they would be getting snapped up by the large venture capital firms? The unfortunate reality, is that for every unicorn we hear about in America, there are typically thousands of companies that go to the wall and completely fail. How do you currently invest your pension at the moment? The UK stock market now only makes up 4% of the global equity markets.
This is an extremely valid point. For example if we look at the inheritance tax threshold of £325,000 or £650,000 per couple. What do you think would be a reasonable inherent tax threshold per individual and couple now considering recent inflation?
It seems Labour are certainly focusing on the more immediate ways of gathering tax. As opposed to the longer term and potentially more stable sources of revenue from economic growth.
Great question, Rob. In my personal opinion no I don’t think they will. As they make good tax revenue from people accessing their pension pots early through Pension freedom rules. Pension freedom rules have been marketed as giving people more freedom with their pensions, but if you think about it from tax perspective, this is also allowing governments to get income tax now from people accessing the pension pot earlier, then they previously would’ve done. I’m guessing you are not a big fan of annuities? While they may be very suitable for certain clients, I have always asked the question why any institution would give you a guaranteed income for life, and unless they thought they could make considerably money on the transaction. There is no free lunch in regulated industries. Or any industries 😂
Indeed, the Labour government is reallocating funds from pensioners and contributing £11 billion to foreign nations, some of which have larger economies and greater prosperity than the UK. Additionally, train drivers, who already receive substantial wages, are being granted pay raises. This raises questions about the fairness of such decisions.
There are potentially always self-interest or strategic reasons for such contributions. Which we may not always have sight of. I wouldn't know enough to comment in detail.
Really interesting video. There is some speculation that Labour will remove or reduce the tax free lump sum. Any thoughts on that and how quickly could they introduce a change
Thanks for your comment, Martin! Indeed, there is much speculation regarding the pension commencement lump sum tax-free amount of 25%. Many of my clients feel extremely frustrated, at the potential of them having planned for a decade, and now that potentially being removed or changed. Generally speaking, the government does not make pension legislation which goes live as of midnight. This did happen once with my clients though, when they introduced the overseas transfer charge of 25%, for anybody completed a transfer to a QROPS, who were residing beyond the UK, EU and Gibraltar. I remember that day extremely well, as we had a mad dash to submit all applications before midnight. I specifically remember one of my clients who I’m still working with all these years later, it was a £2 million DB pension transfer, and so by getting it done by midnight effectively saved the client £0.5 million. Removing the tax-free cash entirely, would be an extremely unpopular move by the government. So perhaps we will see a water down version, or possibly a lower percentage of tax-free cash. What are your thoughts? And what do you think will happen? Are you going to be making any decisions or changes before the 30th of October?
@@cameronjamespensiontransfer The tax free lump sum is vital for people who are diagnosed with life limiting serious illnesses close to when they planned to retire. It would be extremely cruel to rob them of this facility and was not a manifesto proposal.
Indeed. If the labour government were to reduce or remove the tax-free cash, there is a possibility they would add in some type of mitigating circumstances such as life limiting serious illnesses. I would personally like to see the 25% PCLS amount maintained by the UK government, as for many years investors have been relying on this and saving into their pension pots!
@@cameronjamespensiontransfer Thanks for responding. As you highlighted in your video, the Government have seemed to backtrack on any re-introduction of the Lifetime Allowance, so the Tax Free Lump sum or reduction in pension contribution tax relief seem the other likely targets. While I am in the fortunate position of having a final salary pension (luck and 40 years hard work) this would have a significant impact on my retirement plans. I was planning of taking my pension next May, but thinking of getting out now to try to avoid losing the tax free cash.
Most welcome. I must agree that the 25% Tax Free Lump sum looks like a possible target. But to make this an effective strategy, you would think Labour will also need to create a 'decrease' or change in the current inheritance tax advantages of UK pensions. As otherwise, many pensioners, may instead decide to leave the UK pension pots for inheritance tax and succession purposes. Which would then not create any additional income from the tax-free lump sum possibly being removed. You can send me an email on dominic.murray@cjfinance.co.uk if you wish to share more details thoughts on your DB. As leaving a DB would be a huge and irreversible decision that could ultimately be costly in the long run. We operate a two adviser model on all DB advice.
Do we have to pay tax on state pension? I don't have a private pension, but I got a tax bill this morning. I AM over the limit for pension credit , so lose the heating allowance, and now they want tax as well.
A state pension will form part of your annual income. The current tax-free personal allowance in the UK is £12,570. So if your state pension and for example other pension income was above this amount, you would start to pay income tax yes!
Workers pensions should be invested in the best place for the individual pensioner not where the government stands to gain most. A typical case of Labour wanting to control every aspect of peoples's lives.
I cannot agree more. Investors should invest Capital in the areas that give them the highest levels of return in return for the level of risk taken. The idea that small UK businesses should be receiving additional billions from pensioners is not something I agree with. As of the small UK businesses were such an attractive investment opportunity, they would likely be bought up by the venture capitalists! Adam Smith and the free hand of the economy would be turned in their grave at this idea!
The legislation means Keir is exempt from paying tax on pensions savings over £1m. It is not clear whether the Labour leader has saved enough to have benefited from the scheme?
Keir got a special "tax unregistered" pension scheme when he stood down as Director of Public Prosecutions (DPP). I agree that it is certainly not a good look while suggesting big tax changes for people are coming 👀
Is a SIPP that previously had a value exceeding the old LTA and had been completely crystallised and put into drawdown prior to Apr 5th 2024 (therefore tested against the old LTA and applicable penalties paid) now completely free to be transferred in its entirety to a QROPS without being hit by further charges (overseas transfer charge- OTC) even if the current total value of the drawdown SIPP now exceeds its value before being put into drawdown and also the current overseas transfer allowance OTA?
Very very good question. Based on the detailed information you provided above, I would be inclined to say yes. However, if you are resident beyond the UK EU and Gibraltar, it would need a more detailed review and analysis. As it would be a sizable investment planning decision, and I would only feel comfortable that being written in a regulated advice report, which has been through all the relevant due diligence and compliance. As this would be a DC Transfer (I assume?) our advice report would be completed free of charge. You would then have an extremely detailed advice report from us, for you to make an informed decision. 1. For how many years have you been a resident outside of the UK, EU, Gib? 2. What is the rough size of the pension pot? 3. Do you have all the scheme paperwork from the existing or former trustees, and HMRC, confirming the previous LTA taxes that have been paid? If you don’t feel comfortable sharing here, kindly share over an email dominic.murray@cjfinance.co.uk Or book a 30 min catch up slot in my diary: calendly.com/dominic-james-murray/catch-up-30min
@@cameronjamespensiontransfer your right I’ve only ever voted labour once and that was in Blair’s second election but I very quickly regretted it. HS2 won’t have helped the Tories nor will the billions spent and lost to Covid. The 20 billion blackhole I believe is a figment of their imagination made worse by the fact they won’t show it to any one, and the previous chancellor denies any knowledge and he would have known. I fear we face another long period of austerity made worse by the current clueless labour top 3.
Hi Cameron great content someone told me that the new government are going to scrap the 25% tax free allowance on private pensions is there any truth to that or is it just rumours 😮
Hi Peter, thanks for your message. At the moment everything is entirely speculation. Even when the UK government recently removed lifetime allowance, nobody saw this coming even the massive broadsheet newspapers. However, it is clear that the Labour government are believe those with the broader shoulders should be the heavier burden. as such, scrapping or reducing the 25% tax free allowance, more formally known as a pension commencement lump sum, is certainly not off the table. Would this affect you?
You were previously claiming and receiving these OK? For anyone else reading this link may be helpful: www.thetimes.com/money-mentor/pensions-retirement/state-pension/apply-for-pension-credit
Not only do they tax your pension , they keep taxing it once you take it. I paid into my small private pension which had already been taxed from earnings. Then taxed again when i took my lump sum , and they have the front to offer you 25 per cent 8:04 of it free of tax when its already been taxed twice before you take it. Bloody vultures.
I hate the lying politicians probably more than most but - you should have paid into your pension pre-tax; you were allowed 25% of it out free of tax; only paying tax on the remainder thereafter.
Please remember, any employee contributions made will have been extremely tax efficient for you in reducing your income tax all those years ago. Salary sacrifice can keep people out of higher tax brackets. And any personal contributions would typically have been uplifted from the UK Government. So not all bad, but I understand your frustrations!
Hahaha well it all depends on your situation. For some poeple "those with the broadest shoulders should bear the heavier burden" will be welcome news. For others, it might be bad news for their money and inheritance etc.
Hello, I stopped paying NI on my 66th Birthday on 31 October last year and heard it may be reimposed for ‘working’ pensioners in the budget. Do you think this is likely to happen?
Anything can happen in the budget. But remember, no big papers or news outlets knew about LTA being abolished and it was a massive shock, so the Government typically keeps things like tax changes very close to its chest. We will only know on 30th October 2024.
Good video, and you are perfectly correct, it's all double speak and doesn't really mean anything when you analyse it. Unfortunately all the political are the same.
Frustrating right. Even after Brexit (which I did not vote for) I thought the UK Government might have then used that as a plan to break away and create incentives for large firms with lower taxes or something to boost the UK Gov Income. There appears to be little of any substance I can see so far on how to improve the UK economy. Just talk of taxes and those who can shoulder will have the largest burden.
The more money they give pensioners the more pensioners who are drawn into paying tax and being denied benefits unless they raise those threshold’s as well. I think Labour will start the demise of the state pension with regulations forcing every person to pay into a private pension. The dangers are as we have historically seen , private company pensions just vanish or are open to abuse. Plus at the moment working people are being allowed to “ opt out” which i don’t understand.
Some great points here. Firstly, in the Government's defence, the policy of auto enrolment for all employers has been a giant step forward. This has insured millions more individuals are saving for their pensions, and crucially their employer contributing to their pensions! And employers must legally physically set up the pension, for the employer. However, yes, they have allowed the right to opt out for employees. I think you point "The dangers are as we have historically seen, private company pensions... open to abuse" is so important. As an FCA regulated advice firm, we complete many pension comparisons for our clients every month and time and time again the large majority of their UK DC pension pots are performing far worse than the benchmark. With higher costs and often not even in line with their attitude to risk. I think it is criminal that employees are not better educated on the workplace pension schemes. Where is the problem? Are people just not interested enough in their pensions, as people find pensions boring? Or are the Government and employers not doing enough to educate?
The more an individual can invest and save in a pension, the better, in my opinion. But without a good portfolio, It's not as effective strategy. We see some deplorable portfolios in workplace schemes. Particularly the older ones. The newer ones are cheaper and better performing,
Yes, I had a deep dive on this yesterday. Keir got a special "tax unregistered" pension scheme when he stood down as Director of Public Prosecutions (DPP) in 2013. And Labour said it was standard practice for retiring DPPs to get such a deal. That may well be true. But its not a good look 👀
Hi Sandra, it would certainly feel unfair for those who have planned for retirement if the rules are changes! What is your plan with your private pensions?
Any rise i receive next year on the state pension without the rise of personal allowance will render me liable to taxation as i receive 12540 per annum and any increase i will be paying income tax ,is that fair NO
Understood Paul. Indeed, anything over £12,570 will unfortunately fall into the first income tax bracket. Where is that, £12,540 per annum income from? The new state pension is £11,502.40 a year
They can trumpet loudly their support of the triple lock, when they have decided to means test the State Pension, and only the level of income that bars a person from a State Pension, one they have paid into all of their working lives, is the issue left for a government to decide. Slippery? Just a lot!!
It is true that the personal allowance in the United Kingdom has not grown very much over the past few years. After previously doubling since 2010, which was at least something! What taxes do you think the labour government will add in the autumn budget?
I wish I'd never paid into a pension. Worked 37 years, paid my mortgage, now govt want to take money off me. Why work? No wonder so many on long term sick
I understand your frustrations. Although many unemployed people, may have snapped at the chance of gainful employment and being "in control" of their own retirement. Let's see how in control everyone is from 30th October 2024.
That will depend on the rough value of your SIPP? And if the income (first 25% tax-free) of the remaining 75% would exceed your personal annual allowance of £12,570?
@@cameronjamespensiontransfer yes, way over that. Private Pensions seem to be a Cob, you pour money into it, the. You have almost no control over it, once the companies have got their grubby mitts on it. I would have to pay 40% tax on it, but my question is, if it goes into gold as my “pension” is it no longer seen as a pension? Every day I see the value, go down and down and have no control over it, very frustrating.
Hi Jon, I can hopefully bring you some positives. I know it may have been some years ago, but your employer, employee or personal contributions would have likely significantly benefited from either salary sacrifice or uplift from the government. So it would've likely been extremely tax efficient for you in the tax years that you made those contributions ✅ Why do you have no control over it? Do you have the money in a SIPP, or is it still in your current/former workplace scheme(s)? Why would the value be going down and down? Global equity markets have massively grown in the past 10-years, so your pension should have more likely grown. Some questions that will help me get to the bottom of this for you: 1. What is your 5-year return? 2. What is the total expense ratio (TER) of your whole pension? That includes the pension admin costs and any underlying fund OCFs. 3. What is your risk profile? And when was your portfolio last updated? 4. What level of equity weighting are you holding? A balanced investor is usually c.60-65%. 5. What is the rough pension value? Feel free to email me on dominic.murray@cjfinance.co.uk if you prefer and I'll revert personally 🧮
You are the second person to say this today. I’ve often wondered if it’s distracting, but wasn’t sure if I was just noticing it because I know it’s there. Do you think it would be better to have the music turned off entirely?
@@cameronjamespensiontransfer My point was if you are on say 40,000 pounds multiplied by for simplicity 10% you get a pay rise of £4,000. If you are on £12,000 x 10% you get £1,200. So you are £2,800 down in one year. The second year is even worse and so on therefore % pay rises for the lower paid are no good for you.
Thanks. Can you run that one past me again, and how you are down by £2,800 in one year between the two examples? I understand £4,000 minus £1,200 = £2,800, but what is the connection between the two salaries of £40,000 and £12,000?
Well I've given you your thumbs up, but to be honest we don't have much clue as to what you're talking about. Is the intention to encourage pensioners to invest part of their pensions in companies ? And lifetime allowance - never heard this expression in our lives before - what is it?
Thanks for your comment. No, I do not think pensioners should be investing their money specifically into small UK companies. One of the new labour reforms, is the idea of pushing more UK Pension capital to be invested into small growing UK companies. In my opinion, this is the UK Gov trying to control where money should be invested, rather than allowing it to flow to the pension funds that provide the best growth for pensioners. I do not think it has sound economic rationale. Lifetime allowance is something that was scrapped by the Conservative party, the former standard lifetime allowance rate was £1.073 million 👍
I’m guessing that, like Maggie thatcher intended, labour would love to see a return to “Victorian values”, whereby..if you can’t afford it, you don’t get!
It would be very difficult for Starmer to reintroduce the Lifetime Allowance where there is specific legislation with his name in the masthead to effectively give him a free pass on it. I suspect he would be targeted by the opposition (if there is such a thing) from the moment he reintroduced it.
Yeah, I think it is almost certain that the re-introduction of lifetime allowance has now been ruled out. It would’ve been a huge undertaking for the labour government, considering all of the work the conservatives just done to change it. Do you Labour will keep the 25% tax-free cash limit, at £1.073 million, the former/Standard lifetime allowance rate? Would this affect your planning?
@@cameronjamespensiontransfer I think they might, though even that will cause Starmer to have to deflect some well aimed barbs. I wish I was in a position to worry about it frankly, but sadly not!
Yeah not ideal. Would you consider accessing any tax free cash before the 30th October or are you to 55 yet? Feel free to email me directly on dominic.murray@cjfinance.co.uk or book a short 15 min slot of you want: calendly.com/dominic-james-murray/catch-up-15-mins As we have been helping many people to navigate LTA and tax free cash since the recent updates to LTA with SIPPS and QROPS.
Understood. I have many clients asking me now if they should take their TFC now while it is still 25%. The honest answer and technically answer is no. As we can only plan and provide advice on known facts and currently pension have a 25% TFC. However, some clients are certainly independently thinking about gambling on the chances of the 25% TFC being removed. Just to clarify, that is not advice :)
Cameron you are using the wrong term we are told it’s a Benefit it seems to be a two tier system as the public sector get enhanced benefits inequality, unfair treatment of private sector
The official answer from the UK Gov 🤔 "All MPs have to complete a Self Assessment tax return. Most employees do not need to use Self Assessment to complete tax returns. This is because Pay As You Earn (PAYE) and other tax-deduction systems collect the tax which is due or give the right allowances and reliefs."
It will only scapped for the responsible who saved for their retirement. If you wasted all yourmoney you will get it. Time to cash in pensions & spend spend spend .
Ahh yes. The personal allowance has nearly doubled since 2010/11, when it was roughly £6,500. But since 2018-19 it has only increased from £11,850 to £12,570.
Hi Keith, He said in his statement those who can afford to shoulder the pain will carry the largest load, or words to those effect. So all eyes on 30th October! Are there any of the possible changes that you are particularly concerned about?
@@cameronjamespensiontransfer Yes The cost of electric heating in most flats .The rising cost of maintenance charges in apartment blocks .The loss of free bus travel for those whose income ,whilst not qualifying for pension credit have budgeted to manage on a small private pension with the poor state pension when moving into a flat some years ago .The obvious temptation is to ""loose ""any savings for wealthier pensioners ,too .Remember there is no chance of a pensioner supplementing his income with a small job .Unless the smaller pensioners could be sent up a chimney to clean it ,but there are not so many chimneys about now .! Poverty can be a creeping condition compared to ones" peers .
It does not a paint a pretty picture. I would ideally prefer to have seen and heard more from the Labour Party regarding how they believe they will help to improve the growth of the UK economy and also having candid conversations with the multinational conglomerates that are all over our high streets and doormats but seem to be paying extremely low levels of tax given their success and global profits.
@@cameronjamespensiontransfer Yes ,These big businesses need to be held to account .Very difficult,though ,as they can blackmail governments .Also it is in their interests that immigration is not curtailed Many years ago a london university professor showed me some remote sensing photos of population densities of Europe.England was by far the most densely populated country in Europe .! If the EU had combined to control these conglomerates instead of being concerned with social attitudes it would have been more valued .A left wing tendency ,I think .I suppose it boils down to whether you accept very large crumbs falling from a top table you are not welcome at ,or very small crumbs from the top table where you are welcome .Soak the rich multinationals ,eh? Regards Keith
I do feel strongly that massive companies would not mind paying tax in the UK. They just might not enjoy paying 20% corporation tax, haha. And when they can legally avoid paying that tax through various ways of organising their affairs, then why wouldn't they take advantage. It would be fascinating to know how much their legal teams and professionals cost to help them legally avoid taxes. There are winds of change coming though in Europe re. digital company taxes etc.
Keeping the triple lock is not good news, it is unaffordable long term. In years with no inflation or wage growth, there is no justification at all for state pensions going up 2.5% indeed it is completely unfair. And so is it going up with the higher of inflation or wage growth, since in the long term it goes up more than either of them. State pension should be directly indexed to just one of inflation or wage growth. There are pros and cons with choosing either.
An interesting point. Some would say that the triple lock is indeed generous though, and they will be happy for it to remain! Inflation or wage growth would ofcourse be even better!
Has there been any consultation by the Government with IFAs or people who deal with people's pensions every day? Have they tried to understand any unforeseen circumstances of any possible policy changes?
IF Every pension is to improve next year Then PLEASE stop the WFP and let us live long enough to collect this wonderful increase Reduce the increase and give us our WFP this year, or we will not make it through the winter OR IS THAT WHAT YOU WISH TO HAPPEN
We have many people commenting about the Winter Fuel Allowance. What financial difference will this make to you each year and how do you think it will affect you?
Good news two teer state pension high and low triple lock sorted by cons this year push many into tax in April many more in tax threshold tax too low big problem not enough people paying in to state pension costs caught up and agining population
Anyone with basic mental function will know that if you're looking for a particular item, you go to a place where that thing is most likely to be found. You don't go to the toilet if you are hungry. Look at those who exploit tax avoidance and change the rules to close the loopholes. Does that make sense?
@@cameronjamespensiontransfer The poorest in society are getting less breaks while the richest get more breaks, the unfairness of the situation couldn't be more obvious.
In some cases less inheritance tax he wants it now. Perhaps we will end up unable to pay care bills But one is for sure who will save for a future or retirement if you get again pay more tax on earned income or savings. WHY BOTHER
The triple pension lock is a cost of living increase,the loss of the fuel allowance is a loss of income.
Hi David,
Indeed. Policy can often be a case of giving with one hand and taking with the other.
Is there any of the possible changes that you are particularly concerned about for 30th October budget?
David they don't think about that do they, you are 1000% spot on.
Thanks for your comment!
They said they would not stop the heating allowance. They lied about that so will probably do the same with the triple lock!!
Philip, you made a spelling error - it's triple loss!
😂
Let's certainly hope not. The fact that they have mentioned and go all in on the triple lock numerous times on their website would make it extremely embarrassing. As such, I do think the triple lock will remain. Some positives atleast 🧮
One thing that no one mentions about the heating allowance is that it's remained the same since it was introduced. No increase for inflation.
We already pay tax on our pensions, something which I don’t think we should, leave us alone for gods sake, we’ve paid tax all our working lives, and it’s about time we had a break from it!!
Well second pensions were taken out before tax was, so no one paid tax on them from the start. It was a cunning plan by them to get more out of you when you receive this pension
Brace yourself the triple lock Starmer say's will stay, well he could very easily change his mind, using this imaginary crisis that he is building on in his head.
Starmer care's not a bit that we pensioners paid in all our working lives, and paid TAX again to do it. he would quite happily give it to his boat friends, mostly young men looking for a hand out from a soft touch like the Labour party
Not on the first 25% or on the first £12570. And no NI atall, plus no CGT or IHT on DC pensions. As Labour ruled out rises in income taxes, business taxes & VAT to fund their short term spend, spend, spend policies, pensions & investments are an obvious place to raise new revenues. That it will wreck long term incentives to invest & save for your old age is something they'll ignore till it's too late.
@@BenzkneesPension savings are more protected in law than they used to be so at least unscrupulous businesses can’t just take them. I had mine taken when a US firm declared bankruptcy in this country. What should have been a monthly payment of circa £400+ is now £38. I wouldn’t have got that but for the Pension Protection Fund which managed to grab some money from the business. Much safer for pension savers now.
@@arthurdixon5890 - The Pension Protection Fund is only for DB schemes, which these days is restricted largely to feather bedded people in the public sector. And it costs pensioners a lot of money, having £39bn in reserves levied from eligible pension schemes. It'd be better if everyone was in self-managed DC schemes that didn't need layers of red tape regulation & PPF levies.
A guarantee from this Labour government is worthless.
Well the only thing they have guaranteed is the triple lock (and I don't entirely trust them on that). Everything else is so vague that they can weasel out of it by saying they didn't promise it.
I miss Jeremy Corbyn 😞
If they are talking, they are lying 🤷🏻♂️
At least they have guaranteed that. It's something. I would like to hear more from Labour on how they want to grow the economy in this term, or create greater efficiencies within existing costs. More like a business plan that most businesses make.
More Deform U.K fabrication by Nigel Farage and Stephen Yaxley (which means coward in olde English)cry baby Robinson
Waiting for the announcement that the pension will be scaled back to absolute bare bones minimum, i.e, sfa.
We have already got the lowest pensions in Europe. Surely they can't be made any worse.
@@chrisbeard1750 Hold my Bier Starmer.
Let's pray that doesn't come 🙏
Although "those with the broader shoulders should be the heavier burden” doesn't sound good for those woth some cash!
@@chrisbeard1750 But it will be much worse for some - a hefty percentage will lose their State Pension altogether.
as long as Herr Starmer's pension is tax exempt , that's a wonderful.
OOOOOH yes, I forgot about that one!! Special law passed, just for him to make sure his payment for services rendered remained sacrosanct!
Particularly if you have rich friends who can and do help maintain some of your family wardrobe.
@@eimkei1339 Herr Starmer lets another man buy his wife's knickers ? Ugh !
I have had comments from many non-pensioners on YT that assume pensioners don’t pay tax. Your point is a good one. We do!!!
Pensioners pay a huge amount of tax in the United Kingdom, and if some of the rumoured changes are true, they may well assume be paying even more tax.
Which of the rumoured changes are you most concerned about if any?
@@cameronjamespensiontransfer Although I am 74 I do still work a 40 hour week. I had my best private pension ‘stolen’ by a US firm who declared bankruptcy in the UK. The POF give me £38 per month (taxed of course as unearned income). The thing is pensioners plan for retirement based on known costs and pension income. Costs have gone through the roof for all citizens and the triple lock should help rebalance things. But the autumn budget should clarify if they are changing things more.
Hi Arthur, credit to you for still being gainfully employed. Was this through choice, and you enjoy working, or was it rather forced upon you after the US firm pension issue? Indeed, as a financial adviser, we can only advise people on what is the current law and legislation. Which is why so many of my clients are feeling very frustrated about the possibility of there, being large changes just years before their retirement date.
@@cameronjamespensiontransfer Thank you for your comment, I still have a mortgage due to mid life divorce, which hasn’t helped. I believe in our society and still wish to contribute. I have worked since 1967 and paid tax since then. So I guess it is all of the things you say. Off to work now. Enjoy your day…
Have a good one!
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement. Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
I completely agree; I am in my mid 50s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
@@williamDonaldson432 This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
Finding financial advisors like Annette Marie Holt who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Annette has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
A friend of mine told me many years ago “Never trust Labour, they’ll make you poor”. He was right. Particularly Starmer,who really seems to hate pensioners. He probably regards us as unproductive, even though most of us have worked and payed taxes all of our working lives.
Thanks for your comment John. Why do you think he seems to hates pensioners? Is it just a coincidence that they are also the generation from which Labour might be able to apply more direct taxes on things like 25% tax free cash?
@@cameronjamespensiontransfer Starmer likes the poorest pensioners who qualify for Pension Credit. He can pay them some benefits and they then vote Labour. Gordon Brown was the first one to start pilfering private pension funds when he introduced a tax on dividends and I’m surprised he didn’t scrap or reduce the 25% TFC. But I am quite sure Starmer and Reeves will have no such scruples. They don’t like pensioners having money they can’t tax. In fact they don’t seem to like pensioners who have saved any money at all.
@@cameronjamespensiontransfer He doesn't hate pensioners, he just doesn't care. They are not one of Labour's core voting demographics. I'm not saying that all pensioners vote conservative, that would be ridiculous, just not enough of them vote labour to make a difference in an election.
Yes, lots of comments re. Pension Credit. Yeah, Gordon Brown, what can we say? During 1999-2002 Gordon Brown as the Chancellor of the Exchequer he decided to sell basically half of the UK's gold reserves in auctions. 395 tonnes of gold sold for a total of $3.5 billion. I don't even want to know what it would be worth now 👀
The 25% TFC is certainly getting numerous rumours. I think it would be extremely harsh on Pensioners, who have abode by the rules, and specifically planned regarding the 25% tax-free cash. I have so many of my clients calling me.
Unfortunately, we will not know until the autumn budget!
I hear your point of view. It's also relatively low-hanging fruit for them. For example, removing the 25% TFC from someone with say £200K in a pension pot is unlikely to put that person or their family into poverty. They will "just" be £50K worse off than before. And will ultimately likely still survive and get by, but by having to reduce their comfort and retirement spending. Which is arguably not fair if they have planned for the past 10-years to that goal and retirement spending.
What they don't say is the worry. Will they means test the pension, will they raise the tax bands, will they tax the tax-free sum? Will they means test the right to free prescriptions? Will they bring forward the increase in retirement age? Will they means test free bus passes?
This is precisely the problem! Which of the above do you think they will do? Which of these would affect your financial planning the most?
The tax bands will probably remain frozen, and possibly be extended for a longer period. The tax free cap might be lowered, the next retirement age increase is too close to move but they might bring forward the next one. Prescription charges only affect England, but they could increase the age limit in line with the state pension age. Bus passes, who knows? One quick win is to scrap the higher tax band relief for contributions, in my view this is a dead cert for the next budget and will be active in the next financial year.
Thanks for your input. What we can be certain of, is that it would likely be a mixture of some of the concerns everyone has. Ultimately, they believe they need to increase taxes, and it will always be a loser and winner situation for different tax payers.
aluk i bet everyone in the country is worried to death , especially pensioners. Do you know aluk i like you have gone through a lot of the things, they could do to people in this budget and my God, God bloody help us. Your comment is absolutely 1000% right.
Gordon Brown destroyed the benchmark in pensions
What makes you think starmer will be any different 😊
The same Gordon Brown who, as the Chancellor of the Exchequer, decided to sell about half of the UK's gold reserves in auctions. Totalling 395 tonnes of gold, sold for $3.5 billion?
What would that be worth now 😭
@@cameronjamespensiontransfer yes he did! When gold was at historically low prices too!
I call it legalised thieving.
You are not alone in your feelings Paul. Many people in the comments here are feeling the same.
If Starmer wanted to help the economy, he would stop illegal immigration and send back all those illegally in our country because we taxpayers are forced to pay for these people. They should be supporting themselves in their OWN countries. This would save an enormous amount of tax payers money for Starmer to give back to the Unions.
they should also stop sending billions in foreign aid to countries that do nothing for the UK.
Historically, the UK economy significantly benefited from immigration. How do you feel inward immigration is now damaging the UK economy?
@@cameronjamespensiontransfer benifited by legal immigration. not illegal immigration. legal immigration, the immigrants worked and paid taxes, illegals don't pay taxes and scrounge from the state.
@@cameronjamespensiontransfer 🤣 Are you really suggesting the current mass illegal immigration is good for the UK economy?
@@cameronjamespensiontransfernot when 80% of Muslims claim benefits
We have tried to be responsible and saved money and done the best we can with our pensions for our retirement but now these thieves are in power and are going to change the rules
Of course they will they think all pensioner's are millionaire's
Let's certainly hope that the 25% tax-free cash is maintained. Which possible change are you most concerned about?
Or just the easiest to tax?
They will support pensioners... simply means they will give a pensioner a crutch rather then treat them in hospital
Let's hope not. At least the triple lock has been maintained (for now 👀)
A crutch we'll have to pay rent on.....
Excellent. I am not a money man, but I understood all of this. Thank you Cameron.
Hi Jim, you are most very welcome. I do my best to try to make complicated things as simple as possible for people to digest. Look forward to producing my content for you!
Starmer says we must "reform or die". Well, I'll be voting for REFORM in future.
Yeah right. Reform is a limited company trading as political party just so you know and Farage gets 50% for Reform ltd company shares from our taxpayers money and Tice gets 25% for shares from our taxpayers money and they pay 25% corporation tax to hmrc. Reform ltd company won't win seats to form a government . Farage can't be trusted
He will reform. Many of us will die.
If only there were a party made up of some of the smartest business people in the UK. The unfortunate truth, is that those individuals can attract salaries far higher than what is on offer in the public sector. The majority of money for Prime Minister comes after their term. For example, Tony Blair.
@@cameronjamespensiontransfer I'd settle for people who are smart enough, they don't have to be business people, just people who know that a household's is not the same a country's finances. That investment in infrastructure, if done wisely pays dividends in the long term, that a healthy and broad middle class is good for the economy and great for stability, that people living in poverty will put huge stresses on social services and the NHS. That some things should not be privatised. That education is key to a country developing to a higher level.
Some great and valid points here. I guess I have always looked the beast of the role of running a Government (as it is a huge undertaking) and thought that the way some U.K.'s most profitable businesses are run would not be a bad way to try to run the Government. I could not agree more on the education point. In my line of work, I'm continuously educating people on areas of their finances which in my opinion, could have been covered off before they even left school.
Too Busy Paying For Regular Immigrants And Other Countries
What percentage of the UK budget do you think is spent on such areas?
@@cameronjamespensiontransfer £8- 10 Billion and a lot of other costs are hidden. Either way, it’s too much.
It's certainly a difficult problem to solve. How it is best addressed is open to debate. Are there any countries in the EU who you think are doing a better job of immigration policies?
@@cameronjamespensiontransfer Hungary, Poland, Germany(!), Denmark, Norway.
Many swings and roundabouts though in terms of larger tax systems and what people pay in and receive.
I would guess inheritance tax will change, pension under 75 death charges, and pension forming part of an estate. Lta won’t come back but tax free cash might drop. Tax relief might go to flat rate. Until we have certain changes, sit and wait, then make your move accordingly.
I could not agree with you more Gary!
It is extremely dangerous to make financial planning decisions on speculation. Currently all the broadsheets and tabloid papers in the UK, are running alarming headlines that will get people clicking and clicking means paid ads for them.
Some of my clients and Cameron James clients have been reaching out asking what they should do now to protect themselves from the labour autumn budget 🍂
Our professional opinion, is that clients should wait until the autumn budget and the dust settles, until everything is crystal clear.
As even in the following weeks after the autumn budget, it may still not be clear what exactly the legislation means, and legislation can at times be open to interpretation. The trustees, financial advisors, and Accountants, will work their way through the legislation, and then there will become a status quote as to what it means!
I also have a feeling inheritance tax will change. As it fits in extremely well with the labour outlook, that those with the most should shoulder the biggest burden.
Do you think the inheritance tax thresholds are going to change? Or just that the government will include more assets to form part of those thresholds?
I very much agree on LTA, I think the legislation is extremely complicated for the new labour government to rewind.
What amount do you think the government might drop the tax-free cash to?
@@cameronjamespensiontransfer With regard to IHT I think more assets will fall into the basket, and as for Tax free cash, the current limit is rather untidy and may drop to a round amount, although the suggested £100k might be too low. The £60k annual contribution could go back to £40k. Tax relief is hugely expensive and arguably benefits the better off, so losing the top rate wouldn’t hurt the working man. Interestingly none of the above would adversely affect me, so I would broadly be in favour.
Yes, we are very much welcomed the annual pension contribution increase from £40,000 to £60,000 in recent years. As this allows many people to benefit by contributing in an extra £20,000 each year, which can have a sizable impact across both themselves and their partner. The reality though, is that any individual who can afford to save £60,000 per annum, is not exactly struggling. So removing such benefits, would not hurt the working man, as you phrase it.
What is your rough situation?
Ministers obviously don't want to tax higher incomes as they are part of the top 5% which would mean a higher tax on their own income.
Hi Ray, so you think they will try to add the taxes on areas such as Inheritance tax? They may also have wealthy parents though so would also be hit with that!
25% Council tax single occupancy next to go, not just pensioners to be affected
Pensioners should start a mass campaign of refusal to pay the extra 25% demanded if they do that.
@@mrradman2986 as l said not just pensioners will be affected by this
That's about £350 for me extra if they do that, plus losing the heating allowance means that would make me £650 worse off.
@@LMC5690 Agreed but as they have already been targeted pensioners would be a good group to kick start resistance to this disgraceful measure if brought in.
@@stephenboyd4934 I didn't vote for them.
Hi Dominic,
As ever politicians speak with forked tongues, say one thing to get elected then change.
Regarding LTA as the Government wants people to be independent and less dependent on the state pension they can leave the LTA but as the Tories did they capped the tax free amount. This could ( and probably will be) reduced with time. This will also impact those with DB schemes so they could face some resistance from the civil service etc that guides them in making policies.
The state pension really needs a massive overhaul, for the average wage earner the individual and their employer pay far more over 40-45 years than they get out, and higher tax payers are being robbed and taxed to provide pensions for low earners, those receiving tax credits.
It would be great now we have auto enrollment pension schemes with employers if instead of money going into NI contributions the money went into the individuals pension pot. Then there would for many be no need for a state pension, although transition would have to be managed.
The triple lock only becomes a problem if wage rises or inflation ramp up, 2.5% is not a major rise per annum for the chancellor to budget for. Obviously the rises given to train drivers, the NHS etc that Labour has handed out don’t count in the 4% figure being quoted.
Regarding auto enrollment this was just a start, they could do with setting the systems so that companies have to offer a minimum contribution match say 7% meaning 14% could be getting invested. This should ensure an even better pension for many, also remove the £600 approx a month that does not count in salary for % deduction. Also salary sacrifice needs to be offered, although this reduces NI contributions on both sides.
Pensions as you know are not easy and become complicated when trying to cater for so many, I have 6 months until a DB scheme kicks in and I’ll be taking my 25% (again depends on what they do) then a year to wait for my state pension. Currently 64 retired and using DC schemes and rental income so I also don’t want to see tax free amount in dc schemes to be impacted heavily although mine is a relatively modest amount, for many this lump sum is a once in a lifetime opportunity to have a readily available cash lump sum to spoil themselves with
Wow, what a fantastic comment! It’s so good that I will have to answer this one from my desktop 😂
OK I'm now at my computer 💻
Could not agree more Guy! Just look at what the Labour government said, when the Conservative party first introduced the LTA changes. They went straight out and made strong and bold statements about reinstating it. They then gradually backtracked, until they made a recent statement, suggesting that they would not be repealing it. Which was relatively predictable, given the extremely complex nature of LTA, and the sheer amount of work that would've been involved from the Conservative party in removing it.
The capping of the tax-free amount to the former/standard LTA of £1.073M was extremely smart from the UK government. As otherwise, UK pensions would've opened themselves up to massively being taken advantage of.
Regarding the state pension, it is certainly true that moderate and high tax earners get an extremely raw deal from the UK government. It would be interesting to know how many multiples some individuals have made in comparison to others, to also get a full state pension at retirement. That is classic redistribution of wealth, by ensuring those who can't afford to pay, support those who cannot afford. Which is open to discussion on its advantages and drawbacks.
Swapping contributions and money going into individuals pension pots instead of NI contributions would almost certainly mean tens of millions of UK people would enter retirement with a much more stable position. Which would certainly mean their reliance on the state pension would be far lower. What the impacts of that would be on services, such as the NHS, might be unimaginable, though!
I think one of the biggest crimes with salary sacrifice and pension contributions, is that employees are not well or sufficiently educated by their employers or by the government. Many of my clients, had no idea how much more value and contributions they could make to their employer-based pension scheme, until they took out a regulated advice with me. I guess, from an employers' perspective, not all employers want to highlight all the financial benefits available to their employees, which is understandable when their legal duty is often to their shareholders.
TFC - I agree, if the government were to entirely remove the 25% tax-free cash, more formally known as a pension commencement lump sum (PCLS), I think millions of people would feel extremely frustrated and begrudged. As they will possibly have been planning for years, on the expectation that 25% would be tax-free at age, 55, or age 57, from 2028.
How do you intend to tax the work shy in this lovely plan an enormous amount of tax payer’s money goes on those who won’t work and why should they when they can stay home on benefits some getting more per month than those who hold up the NHS I don’t mean the doctors and nurses etc put all the others without the whole system would collapse.
@@user-ns4hm5nh6s sadly this is one of the problems no politician ever seems to mention.
We live in a a country where lower paid can get assistance via universal credit but being in work impacts what help they get.
There is a section of society who have no ambition to try and work, they are almost generational unemployed and living off UC and know how and what to claim. A good portion of these certainly amongst males seem to have enough money for their drink and drugs issues, often part of the black economy or being involved in crime.
Seeing local Crime reports it is amazing how many times some people are up before the magistrates and found guilty before any custodial sentence is imposed. Even those on suspended sentences get another “last chance”
Our prisons are full and they have just released many who have served only 40% if their sentences because they need the room.
These same long term unemployed get free credits for NI to grant them a pension in later life, yet someone on £30K pays more than twice in NI deductions what it costs to make up a missing year via the Government web site. Yet your pension is the same value? Madness does not even come close to describing some of the imbalance/unfairness of the current system
Thieves! Straight into the easy pickings.
Hi Barry,
Thanks for your message.
His statement that “those with the broader shoulders should be the heavier burden”, is potentially a clear indication of what’s to come!
What do you think will happen on the 30 October?
5:25 love the videos, but please ditch the background music, its very distracting.
Thank you for your feedback, this is really interesting. I actually also think about this myself, but then I think maybe I just notice it because I’ve been doing the videos for so long!
We did previously turn down the volume of the background music, you think it would be better and a better use it experience to entirely remove the music?
Get rid please@@cameronjamespensiontransfer
@@cameronjamespensiontransfer Awaiting the answer from @davesmale8602 I made a similar comment to this video - and yes the music should be removed entirely. You have a very nice speaking voice, you speak with clarity and your messages are clean cut and precise. Lowering the volume makes me try to identify the music genre, instruments etc. and then I lose focus on your message. Many thanks for making this channel!
Thanks for this feedback, it's extremely valuable. I can confirm that I have already sent this information over to my editing team, and at least the next few videos will be going live without any background music, for us to assess the results! Your help has been very much appreciated.
I hope the labour party understands, the pensioners will never vote again for a labour government!
Well, let's wait and see how the pensioners are affected on 30th October. I think many working class people will continue to vote Labour, as they could not bring themselves to vote Conservative. What did you vote?
I have always voted Labour...thought this chap wouldn't let us down. I also think the last tory government had a lot against them, covid for one, but they gave us 80% towards our pay packet during that period and awarded us 500 quid for winter fuel payments.
Why does people who worked all there life paying tax and insurance for a government to pay benefits out of our pension to people who who have never worked and at the end off our working life we are worse off pension wise than the people who have been on benefits all ther life
Is that how you feel? Do you think it is an unfair system?
@@cameronjamespensiontransfer Absolutely why should people who wouldn’t get a job and support themselves end up better off than someone who worked all their adult life paid taxes ,insurance etc end up poorer because they still have to pay for lay abouts.Its not right or fair.I wish we could elect some honest politicians who don’t expect pensioners to pay for their breakfasts and their heating bills when the pensioners are struggling to pay their own bills.
Pensions and the state pensions are income as when you work. Still having a tax code/allowances as if working WE pay tax, unless incomr is lower than the codr number
I understand your frustrations. The grass can often seem greener on the other side. I think many who may be unemployed and relying on benefits would snatch people's hand off to have worked more and contributed to society with taxes.
Last-minute taxes on peoples pensions before people's retirement would not be the answer in my opinion though!
Correct.
My concern, which may be unfounded, but they haven't ruled it out, is the introduction of a property tax. They seem obsessed with the idea that we purchased our houses for peanuts, without giving thought to our income at the time.
A 1% annual tax on a £250,000 property looks mighty attractive.
This certainly couldn’t be ruled out. The current inheritance tax thresholds do provide a main residence allowance, but introducing something more directly to tax people on properties would certainly generate additional cash flow for the government.
All eyes 👀 on 30th October
Bus passes are also under attack. We could lose them in the next budget. Labour is attacking old pensioners and new pensioners 😢
What’s is the information on the bus passes? What age range will this affect?
@@cameronjamespensiontransfer 66 and up i think 🤔
Found it! According to the UK Government, "In England you can get a bus pass for free travel when you reach the State Pension age. If you live in London, you can travel free on buses, tubes and other transport when you're 60, but only within London. In Wales you can get a bus pass when you reach 60"
I remember my mum getting her bus pass, and it really gave her a second lease of life travelling into town and going shopping independently without the cost of fuel/parking and the general stress of driving. I think the bus pass is so important to society.
This could be a massive shame and affect many millions of people if changes are made.
www.gov.uk/apply-for-elderly-person-bus-pass#:~:text=If%20you%20live%20in%20England,pass%20when%20you%20reach%2060.
That could be as devastating to many elderly people as could most of the other (progressive) acts of malice. A village on the edge of town has already had it's bus services halved and the removal of passes will finish off most of the remainder. I use it occasionally and usually have to stand. For most people it is a lifeline and as the town centre is in an advanced state of decay, I can only imagine monthly shopping via supermarket vans supplemented by a cavalcade of Amazon/Prime vans serving the wealthier areas will be the order of things. Assisted suicide will be, at best, the verdict when the dastardly deed is done, followed by illegals being 'lovingly' gifted the vacant premises.
4. State pension will be means tested, if you have a sufficant private pension or savings you won't be entitled to a state pension. Just like they have with the Winter Fuel Allowance.
That would seem extremely unfair to all those people who have made long-term contributions, or possibly even topped up missing national insurance contributions to ensure they would have a full state pension.
Where did you read that from? Do you think it will actually happen?
@cameronjamespensiontransfer I'm just speculating based on past performance.
The justification regarding means-testing payment of Winter Fuel Allowance is that many pensioners don't need the money, and why should struggling taxpayers subsidise wealthy pensioners? Why would the same not also apply to the state pension if you have what is deemed to be a sufficient private pension or savings?
As for the "paid in all their lives" argument, how is that working out for the Waspie women or anyone who now can't retire until 67/8 but expected to at 65.
Do I think it'll happen?
25 years ago the UK had a debt to GDP ratio around 30%. What is it now, and how old are you/how long before you receive a state pension/how long are you hoping to receive one for?
Better hope the government doesn't find any more economic blackholes between now and then!
I understand your point. MPs voting to cut winter fuel payment will have come as a massive shock to many. And so means testing the state pension then seems less unlikely.
Do you think the current issues have been brought on by the Conservatives over the past two terms, or a cumulation of both major Government parties?
If the government wants to use pension pots for small businesses etc, then there has to be a guarantee in place, it must not be bailed out by tax payers if it fails.
Great comment, Paul. I feel extremely strongly on this point. Forcefully pushing everyone’s UK Pension asset towards UK businesses, is the absolute opposite of the Scottish philosopher Adam Smith and a free market economy.
My personal opinion, is that money should flow to the equity markets which are most efficient in returning a good level of risk rated growth for that capital.
If these small UK businesses were so good, surely they would be getting snapped up by the large venture capital firms?
The unfortunate reality, is that for every unicorn we hear about in America, there are typically thousands of companies that go to the wall and completely fail.
How do you currently invest your pension at the moment? The UK stock market now only makes up 4% of the global equity markets.
Not raising tax threasholds in line with inflation is a tax increase practice.
This is an extremely valid point. For example if we look at the inheritance tax threshold of £325,000 or £650,000 per couple.
What do you think would be a reasonable inherent tax threshold per individual and couple now considering recent inflation?
Labour hate pensioners 😢
They certainly make for potentially easy pickings! What are your predictions for the 30th of October?
Pensioners phobia 👀🧐
Labour hates the British people full stop 😡
It seems Labour are certainly focusing on the more immediate ways of gathering tax. As opposed to the longer term and potentially more stable sources of revenue from economic growth.
How about KS paying tax on his tax free pension.
I already have received a demand for tax on last years pension ,as I only get the OAP pension. Disgusting
When did this come through? Since Labour took power again?
As a widow pensioner worked for 38years...just received a tax bill of £124....
This was sent to you in the post? Where has the tax originated from?
Will they force us to buy annuities?
Great question, Rob. In my personal opinion no I don’t think they will. As they make good tax revenue from people accessing their pension pots early through Pension freedom rules.
Pension freedom rules have been marketed as giving people more freedom with their pensions, but if you think about it from tax perspective, this is also allowing governments to get income tax now from people accessing the pension pot earlier, then they previously would’ve done.
I’m guessing you are not a big fan of annuities?
While they may be very suitable for certain clients, I have always asked the question why any institution would give you a guaranteed income for life, and unless they thought they could make considerably money on the transaction.
There is no free lunch in regulated industries. Or any industries 😂
Indeed, the Labour government is reallocating funds from pensioners and contributing £11 billion to foreign nations, some of which have larger economies and greater prosperity than the UK. Additionally, train drivers, who already receive substantial wages, are being granted pay raises. This raises questions about the fairness of such decisions.
Which foreign nations are you mentioning?
@@cameronjamespensiontransfer China and India.
There are potentially always self-interest or strategic reasons for such contributions. Which we may not always have sight of. I wouldn't know enough to comment in detail.
0mklloñ9p. .m.ññ9p0 6:48
Really interesting video. There is some speculation that Labour will remove or reduce the tax free lump sum. Any thoughts on that and how quickly could they introduce a change
Thanks for your comment, Martin!
Indeed, there is much speculation regarding the pension commencement lump sum tax-free amount of 25%. Many of my clients feel extremely frustrated, at the potential of them having planned for a decade, and now that potentially being removed or changed.
Generally speaking, the government does not make pension legislation which goes live as of midnight. This did happen once with my clients though, when they introduced the overseas transfer charge of 25%, for anybody completed a transfer to a QROPS, who were residing beyond the UK, EU and Gibraltar.
I remember that day extremely well, as we had a mad dash to submit all applications before midnight. I specifically remember one of my clients who I’m still working with all these years later, it was a £2 million DB pension transfer, and so by getting it done by midnight effectively saved the client £0.5 million.
Removing the tax-free cash entirely, would be an extremely unpopular move by the government. So perhaps we will see a water down version, or possibly a lower percentage of tax-free cash.
What are your thoughts? And what do you think will happen? Are you going to be making any decisions or changes before the 30th of October?
@@cameronjamespensiontransfer The tax free lump sum is vital for people who are diagnosed with life limiting serious illnesses close to when they planned to retire. It would be extremely cruel to rob them of this facility and was not a manifesto proposal.
Indeed. If the labour government were to reduce or remove the tax-free cash, there is a possibility they would add in some type of mitigating circumstances such as life limiting serious illnesses.
I would personally like to see the 25% PCLS amount maintained by the UK government, as for many years investors have been relying on this and saving into their pension pots!
@@cameronjamespensiontransfer Thanks for responding. As you highlighted in your video, the Government have seemed to backtrack on any re-introduction of the Lifetime Allowance, so the Tax Free Lump sum or reduction in pension contribution tax relief seem the other likely targets. While I am in the fortunate position of having a final salary pension (luck and 40 years hard work) this would have a significant impact on my retirement plans. I was planning of taking my pension next May, but thinking of getting out now to try to avoid losing the tax free cash.
Most welcome. I must agree that the 25% Tax Free Lump sum looks like a possible target. But to make this an effective strategy, you would think Labour will also need to create a 'decrease' or change in the current inheritance tax advantages of UK pensions. As otherwise, many pensioners, may instead decide to leave the UK pension pots for inheritance tax and succession purposes. Which would then not create any additional income from the tax-free lump sum possibly being removed.
You can send me an email on dominic.murray@cjfinance.co.uk if you wish to share more details thoughts on your DB. As leaving a DB would be a huge and irreversible decision that could ultimately be costly in the long run. We operate a two adviser model on all DB advice.
Do we have to pay tax on state pension? I don't have a private pension, but I got a tax bill this morning. I AM over the limit for pension credit , so lose the heating allowance, and now they want tax as well.
A state pension will form part of your annual income. The current tax-free personal allowance in the UK is £12,570.
So if your state pension and for example other pension income was above this amount, you would start to pay income tax yes!
Never get in again now
You believe they have backtracked on promises and their manifesto?
Yea they will
All eyes on 30th October 🧮
Thank you I found this informative
You are most very welcome Kevin. We have more videos coming if you hit subscribe 🔔
Don’t trust Kieth Stammer
It's arguable that he may be seen to be going back on his manifesto with some of the rumoured changes. We don't know until Autumn Budget 🍂
same money getting taxed, taxed and more taxed, over & over again !!!!!
Workers pensions should be invested in the best place for the individual pensioner not where the government stands to gain most. A typical case of Labour wanting to control every aspect of peoples's lives.
I cannot agree more. Investors should invest Capital in the areas that give them the highest levels of return in return for the level of risk taken. The idea that small UK businesses should be receiving additional billions from pensioners is not something I agree with.
As of the small UK businesses were such an attractive investment opportunity, they would likely be bought up by the venture capitalists!
Adam Smith and the free hand of the economy would be turned in their grave at this idea!
Starmer has a law to protect his own pension the man's a greasy hypocrite.
The legislation means Keir is exempt from paying tax on pensions savings over £1m. It is not clear whether the Labour leader has saved enough to have benefited from the scheme?
@@cameronjamespensiontransfer Sounds corrupt to me. Especially as they seem keen on taking away from pensioners.
Keir got a special "tax unregistered" pension scheme when he stood down as Director of Public Prosecutions (DPP). I agree that it is certainly not a good look while suggesting big tax changes for people are coming 👀
Is a SIPP that previously had a value exceeding the old LTA and had been completely crystallised and put into drawdown prior to Apr 5th 2024 (therefore tested against the old LTA and applicable penalties paid) now completely free to be transferred in its entirety to a QROPS without being hit by further charges (overseas transfer charge- OTC) even if the current total value of the drawdown SIPP now exceeds its value before being put into drawdown and also the current overseas transfer allowance OTA?
Very very good question. Based on the detailed information you provided above, I would be inclined to say yes. However, if you are resident beyond the UK EU and Gibraltar, it would need a more detailed review and analysis.
As it would be a sizable investment planning decision, and I would only feel comfortable that being written in a regulated advice report, which has been through all the relevant due diligence and compliance.
As this would be a DC Transfer (I assume?) our advice report would be completed free of charge. You would then have an extremely detailed advice report from us, for you to make an informed decision.
1. For how many years have you been a resident outside of the UK, EU, Gib?
2. What is the rough size of the pension pot?
3. Do you have all the scheme paperwork from the existing or former trustees, and HMRC, confirming the previous LTA taxes that have been paid?
If you don’t feel comfortable sharing here, kindly share over an email dominic.murray@cjfinance.co.uk
Or book a 30 min catch up slot in my diary: calendly.com/dominic-james-murray/catch-up-30min
I wouldn’t believe a word that comes out of the mouth of a labour politician.
I am guessing you did not vote Labour? Do you think the Tories have any responsibility for where we find ourselves today?
@@cameronjamespensiontransfer your right I’ve only ever voted labour once and that was in Blair’s second election but I very quickly regretted it. HS2 won’t have helped the Tories nor will the billions spent and lost to Covid. The 20 billion blackhole I believe is a figment of their imagination made worse by the fact they won’t show it to any one, and the previous chancellor denies any knowledge and he would have known. I fear we face another long period of austerity made worse by the current clueless labour top 3.
Hi Cameron great content someone told me that the new government are going to scrap the 25% tax free allowance on private pensions is there any truth to that or is it just rumours 😮
Hi Peter, thanks for your message.
At the moment everything is entirely speculation. Even when the UK government recently removed lifetime allowance, nobody saw this coming even the massive broadsheet newspapers.
However, it is clear that the Labour government are believe those with the broader shoulders should be the heavier burden. as such, scrapping or reducing the 25% tax free allowance, more formally known as a pension commencement lump sum, is certainly not off the table.
Would this affect you?
They have already started to send out demands for income tax on pensions as I got one and I only get my old age pension and have no other scandalous
The more pension goes up, the more tax you pay' and you have to start paying council tax again. If you retired last year, you get NOTHING.
When you say if you retired last year you get nothing, what do you mean?
@cameronjamespensiontransfer the pension rise last year meant you can't claim pension credits or free dental care
You were previously claiming and receiving these OK?
For anyone else reading this link may be helpful: www.thetimes.com/money-mentor/pensions-retirement/state-pension/apply-for-pension-credit
Not only do they tax your pension , they keep taxing it once you take it. I paid into my small private pension which had already been taxed from earnings. Then taxed again when i took my lump sum , and they have the front to offer you 25 per cent 8:04 of it free of tax when its already been taxed twice before you take it. Bloody vultures.
I hate the lying politicians probably more than most but - you should have paid into your pension pre-tax; you were allowed 25% of it out free of tax; only paying tax on the remainder thereafter.
Please remember, any employee contributions made will have been extremely tax efficient for you in reducing your income tax all those years ago. Salary sacrifice can keep people out of higher tax brackets. And any personal contributions would typically have been uplifted from the UK Government.
So not all bad, but I understand your frustrations!
Labour hate pensioners- pensioners hate labour
The second half of that statement, may potentially become more true on the 30th October!
Without watching, I’m guessing it means we are all screwed
Hahaha well it all depends on your situation. For some poeple "those with the broadest shoulders should bear the heavier burden" will be welcome news. For others, it might be bad news for their money and inheritance etc.
Hello, I stopped paying NI on my 66th Birthday on 31 October last year and heard it may be reimposed for ‘working’ pensioners in the budget. Do you think this is likely to happen?
Only on people drawing state pension and still working. About 1.2 million people still work and draw state pension paying no NI .
Anything can happen in the budget. But remember, no big papers or news outlets knew about LTA being abolished and it was a massive shock, so the Government typically keeps things like tax changes very close to its chest. We will only know on 30th October 2024.
The budget will be a disaster😩
I think many millions will be tuning in 🍿
Any changes you are particularly worried about?
Good video, and you are perfectly correct, it's all double speak and doesn't really mean anything when you analyse it. Unfortunately all the political are the same.
Frustrating right. Even after Brexit (which I did not vote for) I thought the UK Government might have then used that as a plan to break away and create incentives for large firms with lower taxes or something to boost the UK Gov Income. There appears to be little of any substance I can see so far on how to improve the UK economy. Just talk of taxes and those who can shoulder will have the largest burden.
The more money they give pensioners the more pensioners who are drawn into paying tax and being denied benefits unless they raise those threshold’s as well.
I think Labour will start the demise of the state pension with regulations forcing every person to pay into a private pension.
The dangers are as we have historically seen , private company pensions just vanish or are open to abuse. Plus at the moment working people are being allowed to “ opt out” which i don’t understand.
Some great points here.
Firstly, in the Government's defence, the policy of auto enrolment for all employers has been a giant step forward. This has insured millions more individuals are saving for their pensions, and crucially their employer contributing to their pensions! And employers must legally physically set up the pension, for the employer. However, yes, they have allowed the right to opt out for employees.
I think you point "The dangers are as we have historically seen, private company pensions... open to abuse" is so important. As an FCA regulated advice firm, we complete many pension comparisons for our clients every month and time and time again the large majority of their UK DC pension pots are performing far worse than the benchmark. With higher costs and often not even in line with their attitude to risk.
I think it is criminal that employees are not better educated on the workplace pension schemes. Where is the problem? Are people just not interested enough in their pensions, as people find pensions boring? Or are the Government and employers not doing enough to educate?
There is already a work place pension in place and has been for 10 years.
The more an individual can invest and save in a pension, the better, in my opinion. But without a good portfolio, It's not as effective strategy. We see some deplorable portfolios in workplace schemes. Particularly the older ones. The newer ones are cheaper and better performing,
Time the Populous demanded the cost of bureaucratic government was reduced massively . Time the populous demanded to know where their tax money goes .
Reverting to hat Cyclop Brown did previously
Are you referring to Gordon Brown?
It means , Herr Starmer's pension will be still exempt from tax.
Do you know what the pension scheme benefits of the Prime Minister or Labour party are?
@@cameronjamespensiontransfer Referring to his pension from his job as Attorney General and yes.
make that DPP.
Yes, I had a deep dive on this yesterday. Keir got a special "tax unregistered" pension scheme when he stood down as Director of Public Prosecutions (DPP) in 2013. And Labour said it was standard practice for retiring DPPs to get such a deal.
That may well be true. But its not a good look 👀
Omg, it gets worse....what a vile monster, these mps are the pits.
We’ve already paid for it all our working days , it’s our money leave it alone, it’s not yours to touch.
Hi Sandra, it would certainly feel unfair for those who have planned for retirement if the rules are changes! What is your plan with your private pensions?
Any rise i receive next year on the state pension without the rise of personal allowance will render me liable to taxation as i receive 12540 per annum and any increase i will be paying income tax ,is that fair NO
Understood Paul. Indeed, anything over £12,570 will unfortunately fall into the first income tax bracket. Where is that, £12,540 per annum income from? The new state pension is £11,502.40 a year
Remember 2010. That is why we had years of austerity
What are you referencing in 2010?
They can trumpet loudly their support of the triple lock, when they have decided to means test the State Pension, and only the level of income that bars a person from a State Pension, one they have paid into all of their working lives, is the issue left for a government to decide. Slippery? Just a lot!!
It is true that the personal allowance in the United Kingdom has not grown very much over the past few years. After previously doubling since 2010, which was at least something! What taxes do you think the labour government will add in the autumn budget?
Labour Liars. Say one thing and do another every time.
Do you feel they are backtracking on their promises and manifesto? Did you vote Labour?
@@cameronjamespensiontransfer Backtracking....absolutely. Voting for them..... No way!
Cameron - your info is much too important to be disturbed by background music - so please skip this! :-)
Thanks for this feedback! This is so valuable to us. You feel like it distracts you from what I am saying?
The government can’t even manage the budget, the last thing we need is to have these idiots interfering with pensions.
They see the two as being connected. How do you think the government should look to bring down the deficit in the budget?
I have a small private pension whi h takes me over the tax limits.
In reality every 4 weeks oap I pay 1 week back in TAX.
😡😡😡
That sounds frustrating. From which tax year and party has this been the case for you?
I wish I'd never paid into a pension. Worked 37 years, paid my mortgage, now govt want to take money off me. Why work? No wonder so many on long term sick
I understand your frustrations. Although many unemployed people, may have snapped at the chance of gainful employment and being "in control" of their own retirement. Let's see how in control everyone is from 30th October 2024.
Can I empty my SIPP and buy gold, without any tax?.
That will depend on the rough value of your SIPP?
And if the income (first 25% tax-free) of the remaining 75% would exceed your personal annual allowance of £12,570?
@@cameronjamespensiontransfer yes, way over that. Private Pensions seem to be a Cob, you pour money into it, the. You have almost no control over it, once the companies have got their grubby mitts on it. I would have to pay 40% tax on it, but my question is, if it goes into gold as my “pension” is it no longer seen as a pension? Every day I see the value, go down and down and have no control over it, very frustrating.
Hi Jon, I can hopefully bring you some positives. I know it may have been some years ago, but your employer, employee or personal contributions would have likely significantly benefited from either salary sacrifice or uplift from the government. So it would've likely been extremely tax efficient for you in the tax years that you made those contributions ✅
Why do you have no control over it? Do you have the money in a SIPP, or is it still in your current/former workplace scheme(s)? Why would the value be going down and down? Global equity markets have massively grown in the past 10-years, so your pension should have more likely grown.
Some questions that will help me get to the bottom of this for you:
1. What is your 5-year return?
2. What is the total expense ratio (TER) of your whole pension? That includes the pension admin costs and any underlying fund OCFs.
3. What is your risk profile? And when was your portfolio last updated?
4. What level of equity weighting are you holding? A balanced investor is usually c.60-65%.
5. What is the rough pension value?
Feel free to email me on dominic.murray@cjfinance.co.uk if you prefer and I'll revert personally 🧮
Music playing all the time while you are speaking is distracting.
You are the second person to say this today. I’ve often wondered if it’s distracting, but wasn’t sure if I was just noticing it because I know it’s there.
Do you think it would be better to have the music turned off entirely?
@@cameronjamespensiontransfer yes
Thanks I have sent this to the team!
We don’t want the triple lock we need decent pay rises not % ones which only is good when you are on good wages
Do you think the National living wage is enough?
@@cameronjamespensiontransfer
My point was if you are on say 40,000 pounds multiplied by for simplicity 10% you get a pay rise of £4,000. If you are on £12,000 x 10% you get £1,200. So you are £2,800 down in one year. The second year is even worse and so on therefore % pay rises for the lower paid are no good for you.
Thanks. Can you run that one past me again, and how you are down by £2,800 in one year between the two examples? I understand £4,000 minus £1,200 = £2,800, but what is the connection between the two salaries of £40,000 and £12,000?
@@cameronjamespensiontransfer a pensioner £12,000 and a person with a reasonable year paid job £40,000. Note based on % each year the gap gets larger
Understood
Well I've given you your thumbs up, but to be honest we don't have much clue as to what you're talking about.
Is the intention to encourage pensioners to invest part of their pensions in companies ?
And lifetime allowance - never heard this expression in our lives before - what is it?
Thanks for your comment.
No, I do not think pensioners should be investing their money specifically into small UK companies. One of the new labour reforms, is the idea of pushing more UK Pension capital to be invested into small growing UK companies.
In my opinion, this is the UK Gov trying to control where money should be invested, rather than allowing it to flow to the pension funds that provide the best growth for pensioners.
I do not think it has sound economic rationale.
Lifetime allowance is something that was scrapped by the Conservative party, the former standard lifetime allowance rate was £1.073 million 👍
I’m guessing that, like Maggie thatcher intended, labour would love to see a return to “Victorian values”, whereby..if you can’t afford it, you don’t get!
Let’s hope they also have some policy of economic growth!
It would be very difficult for Starmer to reintroduce the Lifetime Allowance where there is specific legislation with his name in the masthead to effectively give him a free pass on it. I suspect he would be targeted by the opposition (if there is such a thing) from the moment he reintroduced it.
Yeah, I think it is almost certain that the re-introduction of lifetime allowance has now been ruled out. It would’ve been a huge undertaking for the labour government, considering all of the work the conservatives just done to change it.
Do you Labour will keep the 25% tax-free cash limit, at £1.073 million, the former/Standard lifetime allowance rate?
Would this affect your planning?
@@cameronjamespensiontransfer I think they might, though even that will cause Starmer to have to deflect some well aimed barbs. I wish I was in a position to worry about it frankly, but sadly not!
Yeah not ideal.
Would you consider accessing any tax free cash before the 30th October or are you to 55 yet?
Feel free to email me directly on dominic.murray@cjfinance.co.uk or book a short 15 min slot of you want: calendly.com/dominic-james-murray/catch-up-15-mins
As we have been helping many people to navigate LTA and tax free cash since the recent updates to LTA with SIPPS and QROPS.
@@cameronjamespensiontransfer I’m well into retirement
Understood. I have many clients asking me now if they should take their TFC now while it is still 25%. The honest answer and technically answer is no. As we can only plan and provide advice on known facts and currently pension have a 25% TFC. However, some clients are certainly independently thinking about gambling on the chances of the 25% TFC being removed.
Just to clarify, that is not advice :)
Cameron you are using the wrong term we are told it’s a Benefit it seems to be a two tier system as the public sector get enhanced benefits inequality, unfair treatment of private sector
Thanks John, which term are you talking about?
Stazi stalin the only person who has a LAW specifically stating he pays NO tax on his DPP pension
Labour says it was standard practice for retiring DPPs to get such a deal.
But it can certainly feel rather hippocratic!
Yuk. Get them out
Worse than the Tories in power?
stamer can take our pensions but he cannot take talking pictures off us
Freedom 😉
starmer wants everything but gives nothing!!!!!
Question due MPs pay tax on their parliamentary perks
The official answer from the UK Gov 🤔
"All MPs have to complete a Self Assessment tax return. Most employees do not need to use Self Assessment to complete tax returns. This is because Pay As You Earn (PAYE) and other tax-deduction systems collect the tax which is due or give the right allowances and reliefs."
A sure way to deal with crime is to allow criminals out of prison ??? Suppose it's like eating junk food to stay slim??
Not our areas of expertise to comment here at Cameron James :)
So if labour loses in 4 years, there will be another change
This is unfortunately how politics often operates. No party can provide a longterm plan for the economy!
It will only scapped for the responsible who saved for their retirement. If you wasted all yourmoney you will get it. Time to cash in pensions & spend spend spend .
If you get more than 1 pension then if the total is more than the personal tax allowance then you will pay tax this has been the same for decades.
Yes that is correct! All income, including the state pension count towards your annual personal allowance.
Yes but recent governments failed to raise allowances so more and more tax is due
Ahh yes. The personal allowance has nearly doubled since 2010/11, when it was roughly £6,500. But since 2018-19 it has only increased from £11,850 to £12,570.
@@cameronjamespensiontransfer Exactly, during a period of high inflation and (for some) high income growth - hence the significant ‘fiscal drag’
Let's see if what the personal allowance increase is (if any) in April.
Any Labour policy means "" Soak the Rich ! ""
Hi Keith,
He said in his statement those who can afford to shoulder the pain will carry the largest load, or words to those effect.
So all eyes on 30th October!
Are there any of the possible changes that you are particularly concerned about?
@@cameronjamespensiontransfer Yes The cost of electric heating in most flats .The rising cost of maintenance charges in apartment blocks .The loss of free bus travel for those whose income ,whilst not qualifying for pension credit have budgeted to manage on a small private pension with the poor state pension when moving into a flat some years ago .The obvious temptation is to ""loose ""any savings for wealthier pensioners ,too .Remember there is no chance of a pensioner supplementing his income with a small job .Unless the smaller pensioners could be sent up a chimney to clean it ,but there are not so many chimneys about now .! Poverty can be a creeping condition compared to ones" peers .
It does not a paint a pretty picture. I would ideally prefer to have seen and heard more from the Labour Party regarding how they believe they will help to improve the growth of the UK economy and also having candid conversations with the multinational conglomerates that are all over our high streets and doormats but seem to be paying extremely low levels of tax given their success and global profits.
@@cameronjamespensiontransfer Yes ,These big businesses need to be held to account .Very difficult,though ,as they can blackmail governments .Also it is in their interests that immigration is not curtailed Many years ago a london university professor showed me some remote sensing photos of population densities of Europe.England was by far the most densely populated country in Europe .! If the EU had combined to control these conglomerates instead of being concerned with social attitudes it would have been more valued .A left wing tendency ,I think .I suppose it boils down to whether you accept very large crumbs falling from a top table you are not welcome at ,or very small crumbs from the top table where you are welcome .Soak the rich multinationals ,eh? Regards Keith
I do feel strongly that massive companies would not mind paying tax in the UK. They just might not enjoy paying 20% corporation tax, haha. And when they can legally avoid paying that tax through various ways of organising their affairs, then why wouldn't they take advantage. It would be fascinating to know how much their legal teams and professionals cost to help them legally avoid taxes. There are winds of change coming though in Europe re. digital company taxes etc.
Starmer worded the Labour manifesto in a way that he could manipulate the wording in the manifesto when he got elected.
What specific points do you feel were manipulated? What areas do you think he is backtracking?
@@cameronjamespensiontransfer Old age pension ,illegal migration and that's just a start.
Thanks for your reply
@@cameronjamespensiontransfer your welcome.
@@cameronjamespensiontransfer your welcome.
Keeping the triple lock is not good news, it is unaffordable long term. In years with no inflation or wage growth, there is no justification at all for state pensions going up 2.5% indeed it is completely unfair. And so is it going up with the higher of inflation or wage growth, since in the long term it goes up more than either of them. State pension should be directly indexed to just one of inflation or wage growth. There are pros and cons with choosing either.
An interesting point. Some would say that the triple lock is indeed generous though, and they will be happy for it to remain! Inflation or wage growth would ofcourse be even better!
GET RID OF TRAITOR STARMER
Hi Yvonne, what makes you feel like he is a traitor? You don't believe he is sticking to his manifesto?
It means we’re all screwed !!!
Possible changes in government policies can be unsettling. What is your current situation? What changes might affect you the most?
Trying to fix the Gordon Brown pension raid
Gordon Brown will live long in the memory!
No bloody way i have bean riped of enough with my private pension i payed for two and all i got was a lousey forty pounds
Way i woudent invest in any of the buesnes in this country
Let's face it, none of them has any financial services work experiences or as an entrepreneur ....good luck all.
Has there been any consultation by the Government with IFAs or people who deal with people's pensions every day? Have they tried to understand any unforeseen circumstances of any possible policy changes?
IF Every pension is to improve next year Then PLEASE stop the WFP and let us live long enough to collect this wonderful increase
Reduce the increase and give us our WFP this year, or we will not make it through the winter OR IS THAT WHAT YOU WISH TO HAPPEN
We have many people commenting about the Winter Fuel Allowance. What financial difference will this make to you each year and how do you think it will affect you?
FREE SPEECH IS DEAD . R I P.
Not on this channel 📣😉
Then I shall be very glad to return. Thank you.
We welcome freedom of speech!
Thanks but unfortunately you're not the government. Nice thought though.
😘
Good news two teer state pension high and low triple lock sorted by cons this year push many into tax in April many more in tax threshold tax too low big problem not enough people paying in to state pension costs caught up and agining population
Don't worry us Brits won't put up with Starmer or Chilling chancelor!
Anyone with basic mental function will know that if you're looking for a particular item, you go to a place where that thing is most likely to be found.
You don't go to the toilet if you are hungry.
Look at those who exploit tax avoidance and change the rules to close the loopholes.
Does that make sense?
What tax avoidance schemes or problems are you mentioning?
@@cameronjamespensiontransfer The poorest in society are getting less breaks while the richest get more breaks, the unfairness of the situation couldn't be more obvious.
If Labour make some of the changes that are being rumoured, the richest may likely have new burdens to shoulder for the UK economy.
In some cases less inheritance tax he wants it now. Perhaps we will end up unable to pay care bills
But one is for sure who will save for a future or retirement if you get again pay more tax on earned income or savings. WHY BOTHER
UK taxpayers not feeling incentivised to work would certainly not be a positive for the economy. Is that how you feel currently?
I wouldnt believe a single word those clowns say, they say one thing and do the opposite!