Budget 2012: Larry Lamb: My biggest regret? Paying into a pension

11th Mar '12 by Isaac

10 comments 5445 reads

http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/9136519/Larry-Lamb-My-biggest-regret-Paying-into-a-pension.html

Scrapping top tax relief will wreck pensions, George Osborne told

Axing higher-rate tax relief on retirement pots would fundamentally damage the pensions industry and deter future generations from saving, Britain’s largest pension body warns George Osborne today.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9135127/Scrapping-top-tax-relief-will-wreck-pensions-George-Osborne-told.html

If they change ANY of the pension rules it will be bad for Pension savers and the stockmarket IMO.

George what are the statistics for the number of people saving for pensions? Is'nt this figure desperately low already? Just look at the stock market performance from the last decade...it talks it's own story.

I for one won't be contributing to my pension if they scrap the higher rate tax relief - It just would'nt make any logical sense. What incentive would there be for me to lock away my cash until retirement? None.

I'd rather pay the 40% tax upfront and look at other ways to Invest my cash. Lock away my money and be surrendered to stupid governments changing the rules all the time? No thanks!

The Conservative/Lib Dem governments have'nt really helped the tax payer at all. How ridiculous to suggest scrapping 50% tax relief & replacing it with scrapping the higher rate tax relief on pensions?! The latter would raise a lot more money so it is far from a like for like tax measure.

If you want to raise cash then cut the numbers of MPs to half, it is not necessary to have so many MPs shouting at each other every wednesday afternoon. Cut MP's pensions and salaries in half.

David Cameron should'nt be paid £200k IMO, £100k should do. There are plenty of able candidates that would take the PM job, so if you don't like it hop along.

The countries finances would'nt be so bad if the politicians stopped wasting money & managed them better.

RG is correct to moan about the mansion tax : http://boards.fool.co.uk/why-should-wealth-invested-in-property-be-taxed-12501557.aspx

I plan to vote for Ken in the Mayor election in the Summer, cut in fares + re-introduction of EMA for the young college students & a protest against the Conservatives.

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Fangorn

12th Mar '12

Cutting your nose to spite your face imv Isaac with that protest vote for Ken...

There is little incentive to save that I agree. And of course savers have born the brunt of bailing out all the borrowers we have in this country and I don't see things improving on the promotion of prudence front either.
eg Would not surprise me if we see CGT raised soon, to 40%, which would bring us full circle from Pre 97% 40% + Taper relief but without the taper relief. hardly an incentive to save at all.

So I'll be emigrating at some point and taking my wealth somewhere else where it will be more appreciated.

emptyend

Thats a bit harsh - but I know where you are coming from on that issue. I stopped topping my own pension up when the tax relief came down from 60% to 40% - and decided to put the money into ISAs (and oil shares) instead.

If you want to raise cash then cut the numbers of MPs to half, it is not necessary to have so many MPs shouting at each other every wednesday afternoon. Cut MP's pensions and salaries in half.

David Cameron should'nt be paid £200k IMO, £100k should do. There are plenty of able candidates that would take the PM job, so if you don't like it hop along.

Nice to see confirmation that all of the railing against "overpaid" company bosses is merely sympomatic of an all-embracing bonkerdom :-)

The countries finances would'nt be so bad if the politicians stopped wasting money & managed them better.

RG is correct to moan about the mansion tax

I disagree with that. I think that taxation of physical property assets is precisely the right way to go. The (seriously) wealthy have been systematically undertaxed for many decades - and bricks, mortar and land simply cannot be packed up from Mayfair and exported to Puerto Banus, Malta or Gstaad. Taxation on excessive and unproductive wealth in the UK should encourage a redirection of peoples' savings towards more industrial/commercial investment and towards earning money from working, rather than from sitting complacently on assets like central London property which have made many very wealthy indeed without any effort of their own!

As for Ken, I am historically a big fan of his. However, I think he has lost his way politically and, more importantly, no longer cares for London and Londoners with the huge and evident passion that he once did in the 1980s and 1990s. And I don't think that Boris has done a bad job (contrary to many expectations, including mine).

djpreston

With regard to Ken Livingstone, not even the Guardian like him:

http://www.guardian.co.uk/commentisfree/2012/mar/04/nick-cohen-ken-livingstone-tax-avoidance

Note the perfectly legal use fo company to avoid tax - now that is an outrage (the plan that allows the loophole) - focus on that and the taxes woudl come flooding in.

As for our newt loving friend's other viewpoints. I wont comment other than say he is, IMO, a slimebag and a hypocrite.

Note the perfectly legal use fo company to avoid tax - now that is an outrage (the plan that allows the loophole) - focus on that and the taxes woudl come flooding in.

Indeed. Not something that I approve of at all!

As for our newt loving friend's other viewpoints. I wont comment other than say he is, IMO, a slimebag and a hypocrite.

Of course he has always tended towards the slimebag/slimeball end of things (as with many politicians), but that used to be more than compensated for by the conviction politics and genuinely (IMO) looking to serve London. Unfortunately, that era was the 1980s and 1990s....and more recent hypocrisy, opportunistic flip-flopping on issues (such as City taxes, as the Guardian highlights) and general signs of being distracted by the "celebrity" cocktail and partying circuits, in which he now seems to spend more time, have sent his stock right down in my eyes.

He should have stuck to his newts.

Isaac

16th Mar '12

Labour plans to make 100,000 unemployed take government-paid jobs

http://www.telegraph.co.uk/finance/jobs/9147230/Labour-plans-to-make-100000-unemployed-take-government-paid-jobs.html

A seriously ridiculous proposal, so Ed you think creating phony jobs in the government to get young people employed is the right approach?

More waste, More spending, more nonsense.

How about cutting taxes, lowering corporation tax, providing more incentives for private companies to come to the UK & help boost the GDP/create proper jobs that serve a purpose?

The UK should strive to have one of the lowest rates of tax in the OECD - then maybe there will be a chance of being Great Britain once more.

17th Mar '12

I personally think it is a good idea - why should people get paid to sit on their backsides and watch day time telly. If you are in receipt of government handouts then expect to work for them. It'll be good for their sense of work as well, give them a purpose and perhaps lead to something better.

Concur with the second part about cutting taxes, encouraging enterprise, but we simply aren't going to get that in the current indebted environment ,burdened as it is,by a culture of entitlement and massive welfare state.

I personally think it is a good idea - why should people get paid to sit on their backsides and watch day time telly. If you are in receipt of government handouts then expect to work for them.

errr the proposal is don't create the phony jobs & don't pay people who are very capable of working to sit around...

WHAT DO YOU THINK NEEDS TO CHANGE ABOUT THE BUSINESS WORLD IN BRITAIN?

I have very strong views about this. The UK has to be made a more viable place for businesses to be created and to thrive. I think the tax rates should come down in order to stimulate growth and employment. There should still be a wealth tax or property tax for the exceedingly rich, but I don't think people who have a good work ethic should be penalised as they are now. It's not much of an incentive to create and work hard if such a large portion of it is lining the coffers of the taxman

http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/9149024/Gavin-Henson-People-who-work-hard-shouldnt-be-penalised-for-doing-well.html

freddythefish

Whilst the principle of putting people in work is a good one, trusting government and politicians to run such a scheme without profligacy/fraud/inefficiency/overspend flies in the face of all experience.

Governments and politicians are lousy at managing things. Civil servants in general are political animals with limited experience of efficient management. They would undoubtedly turn this into a shambles with great loss of our money. There's just too much evidence for this to ignore.

Free markets may not be perfect, but they work. The only way to put the economy/employment situation on a positive track is for government to get out of the way, remove barriers/red tape etc., and let the economy flourish.

It's been said many times, but the John Cowperthwaite approach works. And surely we should be pursuing strategies that have been proven to work, rather than repeating past mistakes.

HI Freddy,

I do share your concern about trusting government and politicians to run such a scheme without allowing corruption, incompetence and downright fraud to take their hold. But something has to be done because merely handing out free welfare money is unsustainable. Particularly if one considers the ever rising tax burden on a smaller and smaller percentage of the population that is actually productive.

Perhaps some kind of Military service/boot camp is the solution therefore.The discipline and regimented day will do most of them some good - as will getting outside.

Unfortunately the solution we both agree on , "getting the government out of the way,remove red tape" , is not one we are going to get given the ever increasing nannyism we are exposed to, and the rising amount of pointless bureaucracy emanating from Europe. We seem to have a collective death wish, resigning ourselves in Europe to a life of rising uncompetitiveness, an ever burgeoning welfare state, and a noticeable decline in manners, discipline and morality.

I'll be emigrating at the first possible opportunity.

Budget 2012: Larry Lamb: My biggest regret? Paying into a pension

Scrapping top tax relief will wreck pensions, George Osborne told

Axing higher-rate tax relief on retirement pots would fundamentally damage the pensions industry and deter future generations from saving, Britain’s largest pension body warns George Osborne today.

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Isaac

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Labour plans to make 100,000 unemployed take government-paid jobs

WHAT DO YOU THINK NEEDS TO CHANGE ABOUT THE BUSINESS WORLD IN BRITAIN?

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