Originally Posted by
downsizer
What does this mean for me? In simple Ingerlundish please?
MPs believe that too much of the various reliefs and benefits granted for retirement planning (think free money/tax free cash/accrual etc) are going to those who shouldn’t be having such a large slice of the pie.
For years now, the voices have been getting louder. Is the role of tax reliefs in rebuilding a post pandemic economy efficient and fair, does the current regime of tax reliefs perform this role well, etc. The argument has always been that tax relief (for instance) is worth it in the long run because those who benefit from it then spend it back into the economy, and we all benefit. It’s not working out like that.
So, curtailing relief and benefits in retirement planning for the few would be inexpensive to fix and would be a popular and easy incentivisation for low earners to pay into pensions. What does it mean for you? The changes will most likely be profound (biggest in a generation possibly). Given that personal pension regulation and legislation changes are just one small aspect, then it’s still going to leave the Defined Benefit landscape even more exposed and indefensible.
How that manifests itself could be in any number of ways. Revised revaluation rates might leave you more exposed to annual or lifetime breaches, personal contributions into AFPS, less beneficial commutation etc. Who knows.