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UK Autumn Budget raids on retirement savings predicted
| Published: | 31 Oct at 6 PM |
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Would-be expats looking to their personal pensions to find retirement overseas may lose out in the upcoming UK Autumn Budget.
Raiding pensions is an habitual activity for British chancellors when the economy is slightly shaky, and it seems this year’s UK Autumn Budget isn’t likely to be an exception to the rule. An article in a well-known investment magazine purports the government may well be up to its old tricks again now the British economy is slowing.
Over the past several decades, the annual attack on retirement nest eggs when government coffers need a boost has been the way forward for successive governments. Politicians seem to view retirement savings as easily plucked, low-hanging fruit. Every time this happens, it’s mostly ignored by the masses as the highest tax relief rates are granted to those earning the most. Financiers think it's fine as the pension funds’ huge cash totals are mainly garnered from the richer end of British society which gets the most tax relief.
Experts consider it’s now time for a rebranding of the old-fashioned savings culture, as a serious savings gap is now obvious. Government raids on pensions cash is short-sighted, but it’s the easy way out of financial difficulties for those who run the country. The general opinion in the sector is that pension contribution relief is due for the overhaul expected to be announced on 22 November, meaning that older earners should get financial advice very soon as to the best way to protect their savings.
Financial professionals don’t believe the Chancellor will crack down on the usual culprits, nor will it increase VAT or income tax following the unsuccessful results of the snap general election earlier this year. Many believe saving for retirement should be incentivised as well as retirement planning being made a personal responsibility, as the UK has a need for a financially secure older population in order to ensure sustainable, long-term growth post-Brexit.
On the other hand, with things the way they are right now, perhaps older retirement savers would be better off simply grabbing thier cash and running to the nearest sunny beachside location outside the UK.
Raiding pensions is an habitual activity for British chancellors when the economy is slightly shaky, and it seems this year’s UK Autumn Budget isn’t likely to be an exception to the rule. An article in a well-known investment magazine purports the government may well be up to its old tricks again now the British economy is slowing.
Over the past several decades, the annual attack on retirement nest eggs when government coffers need a boost has been the way forward for successive governments. Politicians seem to view retirement savings as easily plucked, low-hanging fruit. Every time this happens, it’s mostly ignored by the masses as the highest tax relief rates are granted to those earning the most. Financiers think it's fine as the pension funds’ huge cash totals are mainly garnered from the richer end of British society which gets the most tax relief.
Experts consider it’s now time for a rebranding of the old-fashioned savings culture, as a serious savings gap is now obvious. Government raids on pensions cash is short-sighted, but it’s the easy way out of financial difficulties for those who run the country. The general opinion in the sector is that pension contribution relief is due for the overhaul expected to be announced on 22 November, meaning that older earners should get financial advice very soon as to the best way to protect their savings.
Financial professionals don’t believe the Chancellor will crack down on the usual culprits, nor will it increase VAT or income tax following the unsuccessful results of the snap general election earlier this year. Many believe saving for retirement should be incentivised as well as retirement planning being made a personal responsibility, as the UK has a need for a financially secure older population in order to ensure sustainable, long-term growth post-Brexit.
On the other hand, with things the way they are right now, perhaps older retirement savers would be better off simply grabbing thier cash and running to the nearest sunny beachside location outside the UK.
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