(12-17-2025, 12:06 PM)baggy1 Wrote: And how are they means testing the State Pension by the back door?
Reeves' Budget has created a two-tier tax system where those who have their own savings have to pay tax on the State Pension, whereas those who rely on the State Pension don't.
What this means is that people drawing an annuity (however small) will see their own annual retirement income reduced every year that the Triple Lock drives up the State Pension and increases their tax liability. The value of fixed annuity payments will continue to be eroded by inflation, and the income reduced by the new State Pension tax.
Once again - like last years IHT raid, Reeves has disincentivised pension savings. The vindictive Salary Sacrifice changes make things even worse.
Labour is literally driving people who understand the implications away from pension savings towards ISAs and Offshore Bonds.
They're not just deluded, they're dangerous.
(12-17-2025, 02:26 PM)baggy1 Wrote: I don't disagree with the sentiment CC, however I do think that the government, being risk averse, wouldn't go down that route and instead give someone the option to do that. Imagine the press and faux outrage if they did that and the market crashed wiping out everyone's pension. And before you say that wouldn't happen based on the past 40 year trend, you have to consider if you would have considered a global pandemic at all possible a few years ago with all those ramifications.
Auto enrolment has been missold for the vast majority of earners. Investment performance ought to be the least of the governments worries.