The Chancellor last week lowered the limit on lifetime tax-free pension savings, meaning a punitive rate of tax will be levied on pension pots totalling more than £1.25 million.
Might be a good idea, might not be. I tend to think a bad one as there’s no way any of the fuckers is going to raise that limit in line with inflation, let along earnings. We’ve just another place where fiscal drag can do its work.
But given low interest rates, this isn’t actually all that high a pension:
According to calculations by Hargreaves Lansdown, a financial services company, a male worker in the private sector would have to save £1.44 million to receive a £43,387 pension at current annuity rates. A woman would need to save £1.34 million.
Given that women live longer than men I fear that they’ve got those figures the wrong way around. But still. There’s many a public sector pension that is higher than that:
Accountants say that HM Revenue and Customs calculates the pot value of a public sector pension by multiplying the annual sum by 20. So for tax purposes, the MP’s pot is valued at £867,740, well below the tax cap.
Cunts, hang them all, every bureaucrat with the guts of the last politician.