DOOM: over-50s

[AtW]

“Force wealthy back to work by slashing pension tax-free lump sum, says IFS

Hunt remains under pressure to provide over-50s greater incentives to return work

The tax-free limit on total retirement savings should be radically overhauled to stop successful older professionals quitting the workforce in droves, a prominent think-tank has demanded.

The pension lifetime allowance ought to be based on the amount saved during the working lives rather than the total value of the investments at retirement, according to the Institute for Fiscal Studies (IFS).

A saver currently put away no more than the lifetime allowance without their pension being subject to a tax charge of up to 55 per cent. The allowance has been halved over the last decade and now stands at £1.073 million.

The IFS said in a report published today that such rules were part of a pension tax system that was often “arbitrary, wasteful or unfair” and provided older workers with “ridiculously strong disincentives to work more”.”

https://www.telegraph.co.uk/pensions...wth-ministers/

Brilliant plan - raid people’s pensions to make them work again and pay more tax

[northernladuk]

I thought the over 50's were quitting because we've made so much filthy lucre we don't need to work anymore?

Or do poor people quit in their 50's? Why on earth would they do that?

[Protagoras]

From the Telegraph article "The think-tank also said rules that allowed savers to access 25pc of their pension tax-free were too generous towards the wealthy, and suggested that this amount was capped at £100,000 rather than the current allowance of close to £270,000."

If that was announced, there would be a rush of people accessing tax free lump sums!

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BBC - How do we get over-50s back into work?

https://www.bbc.co.uk/sounds/play/m001hnn1?

[vetran]

yep the well off will pull up the ladder if you set fire to the ladder!