Originally Posted by BGM
I don't think may people can save 40k pa, and if you can get out if this thread
Not really a Christmas Day subject, but.....
It's not about simply saving £40000 or even £50000 a year into your pension (you wouldn't have to even if you could as any way as tax relief brings down the amount you need to put that much in a pension pot). It effects those of us on final salary pension schemes due to the way that these schemes are valued for tax purposes.
It means that someone who is relatively highly paid (but not necessarly hugely wealthy or affluent ) such as a head teacher, mid ranking police officer, doctor, senior armed forces officers, can find that the value of their DB pension can rise markedly on promotion (well in excess of £50k annually) which can ultimately lead to a big tax bill. This is the unintended consequences ( or maybe it isn't ) of draconian changes to pension rules.
No sympathy required but it is the middle classes who are, yet again, being made to pay whilst those with very high incomes and big wealth who will probably escape....
Edit....Old Grey Steve....good post. I have made investment and pension decisions in very good faith over the last 5 years, the latest 'fiddling' by Mssrs Osbourne and Alexander have made me review every decision I made, the constantly changing pension legislation is unhelpful and undermines confidence in pensions as an investment for retirement, this can only cost the Government more in the long term.