Pension Panic As Savers Rush To Take 25% Tax-Free Cash Before Labour's Budget

[naomi24]

//Pension companies are being overwhelmed with calls and emails as the over-55s withdraw money from their pension plans in case Reeves curbs one of the most popular pension benefits all.//

 

https://www.express.co.uk/finance/personalfinance/1951679/Labour-Budget-pension-withdrawals-tax-free-cash-Rachel-Reeves-pension-savers-panic ; 

 

More screwing of the pensioners?  Perhaps they'll go back to stashing their money under the mattress.  Not a government that could be said to inspire confidence.

[sandyRoe]

"...in case..."

Humm.  The Express should be ashamed of itself frightening pensioners.

[naomi24]

How about the Guardian,  sandyRoe?

 

https://www.theguardian.com/money/article/2024/aug/26/rachel-reeves-raise-10bn-peducing-pension-tax-relief-fabian-society

[Old_Geezer]

Alternatively they could opt not to deplete their pension pot on retirement. Perhaps even choose not to retire for the next five odd years and see if any potential imminent legislation gets scrapped.

[Gromit]

As the details of the budget are not yet known, this is just speculation. Speculation intended to frighten poor struggling pensions. Shameful behaviour from the Tory press (and those spreading the disinformation).

[ToraToraTora]

The funny thing is the 25% that people take mostly ends up getting spent and thus ends up in the treasury anyway. Once again the economic sense is anathema to Labour. If they cut that then people will just leave it in the pot and thus they'll get nowt. I've never known a chancellor with so little idea how the revenue is generated for the treasury.

[ToraToraTora]

gromit: "Shameful behaviour from the Tory press" - not as shameful as what is actually happening. I think the press are right to speculate in this area. Labour look longingly at the Trillions in the pensions of those prudent enough to provide for themselves.

[naomi24]

Gromit, you appear to have overlooked the Guardian link.

[Peter Pedant]

Labour look longingly at the Trillions in the pensions of those prudent enough to provide for themselves.

yes they did I am afraid - Brown taxed the pension funds 1997 and at a stroke killed all the final salary pensions -  took a few years

https://www.thisismoney.co.uk/money/comment/article-13041677/HAMISH-MCRAE-Time-fix-Gordon-Browns-pension-errors.html

[youngmafbog]

And Gromit and Sandy go quiet!!!!

[youngmafbog]

To be honest I have always wondered about this.  Yes it will affect me I am about to retire but lets face it you saved the money with a tax break so why 25% allowed back out without tax?  The best way to remove this would be to cap it at a fairly high level and then bring that cap down over the years so no one is immediatley affected.

But then labour dont seem to have any common sense, business accumen or economic literacy.

[davebro3]

Gordon Brown was an idiot & rightly got booted out in 2010.

Gold sold cheap/pensions raid/abolished 10% tax rate - all cost the country more than they saved.

I hope Reeves is better but I won't hold my breath.

[youngmafbog]

It's already clear Reeves is a lot worse than Brown.