Also, increasing the age at which pensions become accessible would force people to continue working for longer, which is another thing they want. Of course they would be paying more taxes while working, whereas once they start drawing their pension they only need to withdraw what they need and so pay less tax. Ideally (for the government) everyone would croak the day before they become eligible for state pension. That way they get the maximum amount of work and tax out of you, and get 40% of your savings after you croak. |
If the drawing of pension is delayed a larger amount will be sat in there when you do start to draw and, less time in which to draw presuming no other factors affect your longevity.
Couple this with counting any remaining pension pot as part of your inheritance and larger pots will push more into the IHT bracket.
Labour will want access to your pension pot one way or another. The one thing they cannot get away with is a straight theft of a portion of the value of your pot - say, 2.5% each year.
In addition, I've been a low-earner since I was 50. To be fair, I'd saved into a variety of places including S&S ISA and Prem. Bonds. My biggest single asset though is my SIPP and I have been drawing down from that each March for several years. This has allowed me to transfer quite a bit of the pot value to other, accessible and tax free savings such as cash ISA's.
Now, with the full (new) state pension and with the tax allowance retained at £12,570 it is not possible to draw down more than about £3k without incurring a tax payment.
Had I been forced to wait until I was 60 or even older before drawing down I would have transferred far less out of my pot, it would be considerably larger and we're back to the IHT scenario.
I therefore feel they WILL raise the age at which access to your pension is permitted on the basis that pension payment age is also rising. |
Bats looking like 2775p before ex div then 2725p after ex div. Still we had a good run up with dividends on the way. |
We might as well leave U.K. |
Here is my October budget tax raid list of targets, how many get hit we will have to wait and see..
1 - IHT thresholds 2 - CGT thresholds 3 - SIPP contributions tax relief 4 - SIPP 25% LSA tax free draw down limit revised..? 5 - SIPP 25% draw down age increased..? 6 - LTA limit reintroduced at ..? (GBP1.073M) 7 - PSA tax free limit £1,000 on interest revised down..? 8 - SDLT thresholds for larger properties 9 - Mansion tax 10 - Council tax 25% discount for single occupancy revised..? 11 - ISA allowance / ceiling / cap on income..? 12 - Fuel duty escalator reintroduced + 5/10ppl..? 13 - VED rates, or are we moving to tax per mile instead next..? |
Makes sense. |
MC1 don’t really see why RR would delay access to pension pots as it would just delay drawings and therefore potential taxes. |
The 6 month TA chart trend support line is around 2600-2700 pence, will it pull back that far after XD is something we will have to wait and see, IF it does there is your buying opportunity with the dividend in the bag..
235 pence a year dividends paid quarterly is hard to trade around so I do not, just hoover up the income and use that to add or buy else where..
3000 would have been nice to see, but just a CG on the screen to look at not crystallize.. :o) |
Is 2750p on the cards, before ex div or after ex div, that is the question. |
May be more than five years nemesis6 if Reeves changes rules on age you can access your pension pot. |
its in my SIPP...so not the end of the world will be at least 5 yr till i have access |
Drop I suspect.
If you hold as part of a balanced portfolio I don't really see the issue here. Sure it would be great if it got to 3000 pre divi but as a long term holder I am happy to bank the divi and see others doing well while this falls a little.
Good luck all 👍🏻 |
gulp what a drop....whats it gonna do on exdivvi day? |
With US interest rate moving down plus bigger rate cut yesterday , BATs will definitely moving down fast , very soon under £28 due to US$ exchange rate against £ . |
I have bought my final lot of bats shares this morning. Strictly buying no more as getting overweight here. Xd next week. |
Back In for Divi and the reverse I hope |
Neilson report certainly damaged tobacco shares, wonder if they do a report on how vapes etc booming. |
Interesting reaction to the cut in the US. Up quickly then back down to end negative on the day.
Can't see the BOE doing anything tomorrow and yeah getting sub 5% if they did from cash would be hard to take......lol
Good luck all 👍🏻 |
Well .5% cut, will the BOE cut tomorrow, hope not got cash on deposit, lol |
Any of you guys in zim or pbr-a? |
Thanks for your thoughts llb. Yes I've also been in shares where divis have been slashed. But often the price is moribund and the market pretty much indicating a cut on the way. My two current overweight shares seem different to me. SQZ was priced for much worse than the worst case scenario under the punitive windfall tax regime imo and is now recovering back towards a more sensible yield imo. I'll keep riding it for now to see if it gets there. Similarly SBLK has serious growth aspirations which should help to ensure the divi is maintained imo. Again I'll be watching ready to trim at first signs of trouble! |
7pm monty. 7:30 press conference from the Jerome. |
love the way its just after we shut |
Fed decision 6pm uk time I think. Hopefully .5% otherwise could be fun tomorrow. |
#Spawny100, as hard as it is, think long term portfolio dividend cover sustainability, I have had 3 of my big PF dividend payers cut in half or cut to zero over the last year or 2, VOD/DLG/DEC, it can and will happen IF share prices soften and yields rise they become unsustainable, companies retain more of their earnings and typically pay down debt with it or use it for buybacks..
I also had a some good luck rolling the dice on a couple of AIM stocks a decade ago and got away with it but never push your luck too far, it will bite back..
A 4% * 25, or 5% * 20 with a 5/6% yield offers far better protection through diversification from black swan events and staying in the game is what matters over a lifetime, not getting blown out of the water half across towards retirement and sinking..
That said, I am overweight NG right now after the RI offered up the chance to double down on the position but they do have a monopoly in the UK with a huge moat and barrier to entry from competition, BATS/IMB have also had a cracking run over the summer lifting their weightings too.. :o)
The chart here looked a bit toppy at 2975 so not at all surprised to see it pullback a quid, and hopefully with a FED rate cut tonight the next leg will get underway into the XD 26th.. |