The Budget that CHANGED Retirement Planning FOREVER

[@Annie2229]

I’ve been hearing so much about this budgeting strategy that’s reshaping retirement planning.

[@Johnwhite-c3n]

Same here. I read that people often underestimate how much they’ll need in retirement. Inflation is eating away at savings, and unexpected medical expenses can wreck even the best plans. Balancing everyday spending with long-term goals feels harder than ever.

[@camela8445Mar]

One mistake I made was focusing too much on cutting expenses without thinking about growing my investments. I learned the hard way that just saving isn’t enough-your money has to work for you.

[@camela8445Mar]

After struggling for years, I finally sought help from a CFA, Joseph Nick Cahill, who really turned things around for me. He’s experienced in both short-term and long-term strategies and offers free consultations.

[@V.stones]

I agree about the need for professional guidance. One problem people often overlook is relying too heavily on one income source, like Social Security. It’s risky. Diversification is key, and someone like Joseph Nick Cahill can guide you on spreading risk while maximizing growth

[@mariadrukker2557]

Another pitfall is ignoring tax planning. Without the right strategy, taxes can eat a huge chunk of your retirement income. I started working with Joseph Nick Cahill last year, and his advice on tax-efficient investing alone saved me thousands.

[@MattsMkia]

I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?

[@LUCIASMITH-d1z]

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert

[@IamJonny-o4v]

A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

[@winifred-k9e]

I could really use the expertise of this advisors

[@IamJonny-o4v]

I've experimented with a few over the past years, but I've stuck with the popularly ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@JacobsErick-u8r]

Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks

[@KarenLavia]

I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.

[@JohnSmith060]

There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.

[@ClarkeGriffiny7]

That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.

[@ScottKindle-bk3hx]

That's quite impressive! Can you share more information about your financial advisor?

[@ClarkeGriffiny7]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne’” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@BellamyGriffin19]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website… thank you for sharing.

[@SevenEllen]

Isn't the deal of a wages increase but keeping the £12570 personal tax allowance frozen like giving with one hand and taking with another?

[@marumaru6084]

Minimum wage increase is a laugh because on the other hand there is mass immigration lowering wages it is noticeable the minimum wage was only introduced with mass immigration

[@PrinciplesPersonalFinance]

Yep, that's the nature of stealth taxes and frozen bands. They require both knowing the rules and doing the maths, so they go unnoticed in general.

[@risenshine2783]

And any increase to employers in tax is passed onto the public when buying goods.. so workers are affected collectively paying for the employers increased taxes

[@risenshine2783]

Minimum wage and carers allowance is taken up mainly by immigrants

[@saracentiano]

​@risenshine2783 bollocks. Us immigrants do jobs you gobs don't like to do while we slog our asses off to feed you benefits. Get off the high horses and roll up tobacco George.

[@barmyneddy1789]

Retirement planning depends on the planner living to retirement. That's not a given. Live your life, find happiness when and where you can. Care for others, care for yourself and remember that this life is short.

[@britishbluetess]

That’s about the best advice going 👍

[@DixieDaydreamer]

"Birth, taxes and death. The only certainties in life". Flip a coin and see what your luck's like! My mum worked and saved her whle life and she dropped dead 6 months short of retirement. My dad never really took care of himself, didn't exercise or eat the right stuff and even he was convinced he'd be gone by age 70 at the latest, he just celebrated his 84th birthday and he's probably in the best shape of his entire life right now! Roll the bones and see what you get, 'cos no sod's got a clue what's going to happen.

[@bcarroll7317]

Tax when you earn. Tax when you employ, Tax when you spend, Tax when you buy, tax on your savings, tax on your pension, tax when you sell, tax when you die.

[@KrisJovi-vj3vd]

People will get what they voted for.

[@KrisJovi-vj3vd]

You get what you vote for. You vote leftists in, you're gonna get financially exploited.

[@macroman54]

@@KrisJovi-vj3vd far more people didn't vote for Labour than did.

[@KrisJovi-vj3vd]

@@macroman54 I know the voting system is rigged to benefit the two main parties (so no other party can ever rule). This needs a reform in the UK. However, still a big deal of people cast their vote on leftists, i.e. labours.

[@graemejones9707]

And even tax on the house you live in!

[@DonaldMark-ne7se]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[@kevinmarten]

True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.

[@Jamessmith-12]

Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.

[@JacquelinePerrira]

That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this coach?

[@Jamessmith-12]

'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@JacquelinePerrira]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@mikearmistead4045]

Just encouraged me to retire early to make sure I spend my pension rather than leave to the government. I’m sure not what they intended with today’s falling workforce being a major concern.

[@js22334332]

Doctor's, Engineers and every other type of skilled worker arriving daily, by the boatload.

[@O.O.O.K999]

You could leave it to charity if you have no family. That's my position (already retired) BUT I still worry they'll find a way to take it. Workforces, like populations could not, and cannot, continue to increase, both have to hit the buffers at some point and I think we are there.

[@jan2000nl]

@@js22334332If natives aren’t willing to work, then someone has to support an ever expanding welfare state demanded by the natives.

[@iambarks2814]

That’s exactly what’s intended - retirement pots are meant to be spent. They are not a financial vehicle to shield wealth from inheritance taxes while the wealthy live of other sources of income.

[@iambarks2814]

@@O.O.O.K999spend it then, that’s what your retirement pot is for

[@dominic8218]

Their definition of wealthy is similar to their definition of a “working person.” I don’t think they have a clue what either means!

[@zantas-handle]

Oh they DO 'have a clue' - they know EXACTLY what they're doing!

[@edwinfitchett6033]

They are just vague terms used to hoodwink the electorate into trusting them

[@gug1970]

GIven that starmer couldnt say what a woman was , its not exactly surprising.

[@dominic8218]

@@zantas-handle that’s a fair point 👍🏻

[@Discodave007licencedtothrill.]

@@dominic8218 🤣 Please STOP “thinking”, because you have zero idea what you’re talking about. 🙄🤦‍♂️ Or update to IOS 17, maybe? 🤔

[@alexblue6991]

Nice lesson for the younger generation it's not worth working anymore stay on benefits I worked on building sites for 50yr years on low pay retired now because I worked for so long I get less of a government pension than someone who couldn't be bothered to get off their arse and get a job they get the rest made up on benefits

[@Adam-mo2qw]

I quite like working though. Definitely not investing now though with the savage 18% capital gains tax now.

[@robbeales5516]

Same with me 50 years in the building trade with a new hip and knee joints knackered , don’t work and claim everything going is my advice and enjoy an easy life whilst the morons are in charge , if you can’t beat them join them 😊

[@Adam-mo2qw]

@BillyTheKid-l5j sounds like you lived beyond your means. Most builders I know are doing really well. Better than most.

[@alexblue6991]

@Adam-mo2qw I'm doing great stress free but it's still true they get more on benefits

[@Adam-mo2qw]

@BillyTheKid-l5j OK, so working your whole life has resulted in owning your own house and a few BTL properties too. Sounds like you made the right call instead of benefits 😉

[@keithsnowdon8672]

I retired 10 years ago aged 53. Pleased i did. At least not paying tax to things i dont like paying tax to.

[@timothywelch6450]

My whole strategy changed yesterday. My saving motivation evaporated in one sentence. And my children will be the ones who lose.

[@william_marshal]

As if you had motivation to save under the Tories when savings interest rates were 0.1%

[@rodmcintosh3149]

@@william_marshal interest rates were 5.25%. Did you miss that?

[@BenGmanUk]

@@rodmcintosh3149 For 2 out of the 14 years.

[@jamesgiles2676]

​​@@william_marshalwhat idiot puts the majority of their money in a savings account. You need some financial education.

[@JoanCarradine]

I empathise with you, that is disheartening and sad to here.

[@TheSilvercue]

My plans have been completely shafted. I aimed to have a pension pot I could live of the growth and leave to my son. Now I have to pay 40% tax on that when I die. Of course, politicians all have gold plated direct benefits pension, so don’t have a taxable pot.

[@neilmick6778]

Oh yeah, they won't do something that negatively impacts themselves, they're money grabbing, power hungry, success hating, fucktards.

[@kevinrayner5812]

I am going to run my pension down to zero and **ck HMRC. Become an expat and invest my ISA off shore and **ck HMRC on that as well.

[@Al_Does_Stuff]

Well 'you' don't but it's certainly a hassle people can do without at a difficult time. Having said that inheritance tax is one of the fairest better than taking large amounts from those Trying to keep up with bills or cutting essential services even more.

[@TheSilvercue]

@ inheritance tax means people have to sell their family home, regularly. No other tax forces people out of their homes.

[@jayritchie2785]

I think its worse than that (although the legislation will go through some review). It looks like your pension may be subject to IHT at 40% plus taxable for your beneficiary.

[@lulabellegnostic8402]

Job losses from small to medium size businesses is inevitable. As is the cost of services as increased employer’s costs are passed to customers.

[@william_marshal]

Unemployment is at it's lowest in years. Most Businesses are crying out for workers, so they're hardly likely to sack people !!!

[@1BeardyLad]

@@william_marshal because they were incentivised to when it was more beneficial to hire staff, they just made hiring staff more expensive to the employ. With an increase to employers running costs that will results in those costs being passed on to the customers. The minimum wage increase and a frozen £12500 personal allowance it will drag more people into a higher tax bracket for anything earned over that, so anyone that’s on the border with part time or gig economy or seasonal work such as events or seaside towns will be dragged into the tax earlier and therefore have less to show for their money.

[@dehn6581]

@@william_marshal Depends on the sector and level - entry level employees have seen hours and positions cut for a few years now, leaving a real struggle.

[@jonsnow6741]

Spot the job losses have started today where I work !

[@Grahamponting]

The key issue here is that the Public Sector are unaffected by including pension assets in one's estate. This is because they benefit from unfunded defined benefit pensions that are not expressed as a capital sum, even though to replace those benefits in the Private Sector would cost millions. The new situation for those of us in the Private Sector is that a £1 million fund left to our children will be taxed to the tune of £400,000. Then, if our kids take the remaining £600k as a lump sum, they will suffer tax at 45%, which just leaves £330k from a £1 million inheritance with £670k going in tax. This legalised robbery does beg the question, 'What's the effing point of saving anything for your and your children's future?'

[@arhodes2866]

In the public sector (nhs) when you “peg it” there isn’t anything for the kids to inherit. Pension dies with me. Looking at how pushed to limit in work I don’t think we will live long enough to get that much out

[@Nobumblegumforyou]

I feel you. I guess the answer to this is to be geared towards income rather than capital gain. Invest in your kids setting up a business, a debt free education. Do it throughout their lifetime rather than as a lump sum. Or just simply make a plan to leave.

[@dennishaggerty463]

The government have decided to attack those fortunate enough to have built up a large private pension, they are also targeting the owners of valuable property. Both have become stores of wealth (even if mainly acting as hedges against inflation) to pass on the the next generation. The deep unfairness of CGT is that it’s mainly a tax on inflation rather than a tax on accumulated true additional wealth. When tax planners and the financial planning industry fully absorb the long term effects of these changes, expect the pension and savings landscape to look very different. Trusts are going to become big business, so expect the government to clamp down on these next! Gifting during your lifetime will play a far greater role as will blowing your cash. If this lot think they are going to get 40percent of my pension in IHT, they will be very disappointed.

[@geofwassell]

The government took £130K in inheritance tax from my fathers estate in 2022. He was a woodwork teacher who was smart with his savings. He wasnt a big business exec or into high finance. He also wasnt particularly well versed in finance matters.It appears that they will want still more from my estate when I die. Our familly arent rich land owners, we speak with a northern accent, we are at best, middle class. I wonder who is feathering their nest here. Many issues dont seem as well covered as the 1960s and yet we are paying more overall taxes meaning that over our entire lifetime, the amount of tax ( income, death,vat, duties, NI etc) has increased. Yet services are degraded.NHS, maternity hospitals, cottage hospitals , care homes, mental health care, military, schooling, council houses, railways...all shrunken.Where's the money going?Who is stealing the money?

[@jaggill521]

The point is to make sure you are still indebted and have to play the game. Because the trajectory in the last 40 years was that more people were able to get out of financial debt and become ‘free’. Governments don’t want that especially ideological government ‘s like Labour. Look at the 10 points of the Communist manifesto. All the lefty European governments are working towards that. It’s undeniable.

[@pauline5260]

No - one is stealing the money. 12 % of all government spending now goes on interest payments on debt. In other words, now we are paying for the fact we have lived beyond our means as a country fir decades.

[@ushasundaram1]

Let's see, spaffing millions on overseas aid, 3bn a year for as long as it takes to Ukraine and Zelensky - apparently his wife doesn't have enough Bugattis and family enough mansions in Monaco - research grants for decolonisation, notable being a million pound grant to a Portuguese man to explore the role of gay porn in building Europe - some examples of where your money is going....

[@manoo422]

The Duke of Westminster didnt pay a penny on his £9Billion worth...

[@william_marshal]

Most inheritance tax comes from property ownership. Let me remind you than the value of most properties went up around 500% in 40 years. That was wealth that was never taxed and a lot of people earned more from the value of their house going up than they made from working.

[@petert7332]

The other thing to remember about personal tax thresholds is that we are in the year 2024. There is still a long way to go and a lot can happen. I hate it when some future benefit is sold to me like an immediate win. Also the sentence “we only want to do this once” sounds like taxes will come down again - all of this is going to stay. I am not necessarily opposed to many of these taxes and increases the problem is that they are all coming at once and that the benefits seem to be disproportionate on the public sector side.

Looks like we,ll retire earlier than planned . Great summary

[@keithsnowdon8672]

Do it. You will get by. Its nice to get a life to do what you want when you want. Provided it isnt expensive

[@SouthseaCharters]

I employ 8 staff and had 2 new jobs advertised which having done the maths I have just removed from the job website.

[@dontuno]

Reeves budget is absolutely rife with unintended consequences but had she looked further than her nose then she could easily have worked it out. Meanwhile, everyone has to suffer because of her inadequacies.

[@MrBerry67]

This budget didn't target the wealthy , it targeted the average employee worker - lower stamp duty allowance removed, freeze on personal tax thresholds and the really big one IHT allowance frozen for another 2 years and pensions now in IHT, plus another big one increased NI for employers will lead to reduced wage growth and redundancies - a grotesque budget

[@1rickslater]

The raise in capital gains taxes definitely disproportionately effect the extremely wealthy.

[@MrKarlyboy]

A lot of basic taxpayers and middle income earners have shares or something. If she wanted to target wealth you just say any cgt asset > 1m or 5m. So its all BS from liebore.

[@1rickslater]

@ Fact: in 2023 only 0.65% of the UK adult population paid capital gains tax. Would you consider 0.65% of the population to be allot? Do you think that’s a significant portion of the middle class’s.

[@meltedsnowman9637]

Tax rises on the wealthy in general pretty frequently negatively affect employees. You’re also selectively not mentioning the budget increasing capital gains taxes and targeting non dom status, along with the other taxes that affect higher earners, the extra stamp duty if you have more than one house and you’re buying another, the additional tax on private equity etc. So your point is just coming about from cherrypicking. Also what tax rises would be better in your view to raise the same amount of revenue?

[@meltedsnowman9637]

@@MrKarlyboy That would raise an unbelievably small amount of money, if not lose money due to less business investment or rich people coming to the UK. So that’s not a serious proposal to make up the taxes required.

[@Lovedogs-i1m]

i worked long hours, no holidays, cheap clothing, no take outs or pub meals just to save for my retirement. there is no incentive to keep more than £10,000. your will end up paying more with no help from govt. my take is spend, spend, spend. your will get more from pension credits than you will benefit from your own savings over £10,000.

[@Stuart-f2m]

People that work & save for retirement are screwed over. Now losing their winter fuel . Dolescroungers get is still though with free everything else. Is it a wonder nobody wants to work?

[@barmyneddy1789]

Bang on. No incentive to act responsibly. Spend it, enjoy it

[@hugheaston7598]

You can also gift some of your cash and/or assets to your children now, while you're still alive. As long as you live at least 7 years following making the gift, the gift is no longer part of your estate and no IHT applies. That's what most rich people do, which is one of the reasons why they don't pay very much IHT.

[@jafar4marva]

I am in the position uou describe and in some ways I regret paying in to a very tiny occupational pension and qualifying for full state pension as it is all taxable; and means tested too as long as I am forced by high rental costs to depend on housing benefit. Therefore you should consider carefully before levelling down to pension credit. The reason being that pension credit is means tested (and presumably soon to be taxed as it approaches tax threshold), and once you are down to that degree any efforts at earning additional income will be deducted from your pension credit. If you insist on going in that direction then seek to diversify your assets or you will lose everything to a hungry tax system that feeds off the poor and favours extreme wealth. Be aware that AI is there to watch over your every move. You may find yourself in a poverty trap of your own doing. Owning your home if you are that fortunate may afford some flexibility if you keep all your pensions or cash in and reinvest. They have us by the balls😢

[@TaiwoOmotosho-m9v]

That is not true. I received pension credits when I was unwell for two years. I would have preferred to be in excellent health and be able to work and earn my money and have my full employer pension contributions in my DB scheme.That was a wakeup call for me to start investing in DC pension scheme as well.I couldn't even afford Income Protection Insurance so Life was tough and hard.

[@pmr01]

put your money into equity release companies. they will surely benefit as people take as much capital out of their house as they can to offset the pension coming into scope. ok, these companies are expensive, but now it may work out cheaper than paying the 40%.

[@dontuno]

My fear is that yet again we have another stealth tax i.e. IHT. More and more will be drawn into this vile tax until even if you are a pauper you will be robbed. Personally I've gone from paying £0 to £300K from April 2027. My intention now is to blow the lot as quickly as I can. Labour can pay my care home fees, not me!

[@ColinWatters]

The crazy thing is the extremely rich can afford to give most of their money to their kids while still alive. It's the moderately rich, perhaps someone who sold a small business and is living on investment income who will get caught as they can't so easily avoid IHT.

[@MentalLentil-ev9jr]

IHT is never a stealth tax, the whinging from any rise is greater than for almost anything else - the absolute opposite of a stealth tax. You do understand what "stealth" means? Why should unearned income from inheritance be taxed so incredibly more generously than income from actually working for the money? You know, income that you do nothing to earn compared to income you have to work for. Inheritance tax should be removed, but it should be replaced by treating income from inheritance as if the inheritor had actually earned that money, i.e. it gets added to their income for taxation.

[@ColinWatters]

@MentalLentil-ev9jr If my kids were faced with an enormous IHT bill I'd look at moving abroad.

[@MentalLentil-ev9jr]

@@ColinWatters That is of course always your choice, most people won't. I'm more concerned about doctors and nurses etc that are moving overseas because our health service is so underfunded - the lack of government spending is more likely to make me leave, though I won't.

[@dontuno]

@@MentalLentil-ev9jr What so 20% tax for example rather than 40% and don't patronise me, I have a far better understanding of a stealth tax than you do!

[@wilsonflood4393]

Some of us understand inflation only too well. The annual inheritance tax gift allowance was last set around 1980! when £3000 was an average wage.

[@daisuke4890]

agreed that iht applying to unused pension pot will have a huge impact on how many of us need to plan for our retirement now. annuities might come back into fashion, at least as a partial strategy alongside drawdown. very insightful analysis, thank you!

[@PrinciplesPersonalFinance]

Thank you and agreed! Lots of cash flow plans will change of the back of it, for sure.

[@chrish7975]

They don't want you to keep or save money.. because in the future, money will be in form of credit, you won't actually have your own money.

[@TGE66]

Excellent summary thanks

[@levantos]

Inheritance Tax has always been a scam, getting double taxed in life and death.

[@stubadds6890]

Targets private sector workers again. Private sector already have a poor deal on pensions, no access the db pensions, lower employer contributions so have to fund more of your own retirement and take on the investment risk in a DC pension. And now pay IHT on the pot when you die. Worst bit is most people have no ideas what size pot you need just to get by so they think these limits mean you are wealthy!

[@william_marshal]

Do you mean a gold platted pension which you can write off the tax, stop feeling sorry for yourself, you've never had it so good.

[@jaaguitar]

Yep, Public sector pensions are the ones needing reform. Info such as the equivalent pension pot needed for (eg) a nurse's pension needs to be in the public domain.

[@Stuart-f2m]

​​​@@jaaguitar 100% correct . The Greedy Civil servants & Mps Draining the well of public money & saying how the state pension. , which incendently Is one of the lowest in the western world is the problem . Their own gold plated pension..... nothing to see here.

[@TheSilvercue]

⁠@@william_marshalyou are just showing how financially illiterate you are in these comments Willian. Gold plated pensions are DB pensions linked to final salary, not DC pensions which are basically savings accounts. In others words, the pensions in public sector…like politicians get.

[@user-yl6de8el6g]

@@william_marshal I think he was talking about the liability of unfunded public sector pension schemes which is currently valued at £1.3 trillion - but not to worry, the private sector will just keep sucking it up to fund things that they could never hope to afford themselves, right ?

[@cherylcressey]

So what's the most effective strategy during this period of volatility with the rate cut? Most of my portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) I want to explore different strategies to benefit from a potential bubble

[@ivonnemichael5680]

This is the thought of a person who is handling their portfolio themselves. I will advice you engage guidance to help you make smarter portfolio decisions. My IRA and cash accounts are far more than what I expected for my retirement. I can easily handle a worst-case 80% stock crash, Thanks to my CFA

[@cherylcressey]

Mind if I look up your adviser please?

[@ivonnemichael5680]

Sure you can! Gabriel Alberto William is the financial advisor I work with. Just search the name. You’d find necessary details to work with

[@cherylcressey]

Thanks for the recommendation. I just searched him on google with his full name and i easily spotted his website, very impressive

[@pcaso]

SCAMMERS😂

[@tonyb9185]

Pay freeze and job cuts are coming

[@rodmcintosh3149]

Then inflation will return, interest rates will rise again all typical Liebour. Look back at previous Liebour governments and the same facts are there

[@Discodave007licencedtothrill.]

🤣 Two crazy Truss and Crazy fans. How did their budget go? Go on… Just remind me again. 🤔🤷‍♂️🤣🤣

[@rhysbevan429]

There are 2 vacancies for every job seeker. Competition for workers will continue. It will make the London weighting effect of wages more costly and encourage businesses to start up elsewhere, levelling up the rest of the UK.

[@stephenelkington4971]

@@rodmcintosh3149 Not a fan then ?

[@Discodave007licencedtothrill.]

@@rodmcintosh3149 🤣 No it won’t. Just remind how much your mortgage went up, after Truss and Kwatengs? Just remind how GOOD, that made you feel?

[@RichPober]

5:00 If you are a contractor on an inside IR35 contract, then you will be paying both employee as well as employer national insurance contributions from your day rate.

[@PrinciplesPersonalFinance]

Good point! I did think this morning about that and Ltd company directors and how the £5k starting NI rate will change things a bit!

[@philipmumford7871]

I gave up contracting after 20+ years just before covid. Rates for the roles I went for had been flat for years! They are still less than in 2010 now and with IR35 and tax schemes being attacked I didn't see the benefit any more. Have a look into perm roles. I was pleasantly surprised at perm salaries available and benefits included.

[@RichPober]

​@@PrinciplesPersonalFinance The Employer National Insurance contributions are not only paid by directors of Ltd personal service companies, but are also paid by temp contractors on 'Inside IR35' contracts. A lot of these ordinary workers are employed by the public sector, such as the NHS, the largest employer in the UK. Hence, it is nonsense when the UK government says that these changes will not appear in workers' pay packets. The current party in power doesn't seem to understand how the IR35 employment supply chain works, nor how temps / contractors, who have to work within this framework, are taxed.

[@IMAC1776]

The rich never paid IHT. Or, at least, they only paid a fraction of a percentage of their total wealth. The people who routinely get clobbered by IHT are the middle class especially those living in the south east of England. People who bought a house in the 1960s or 70s and made small, but regular, investments in the stock market. These people who now have assets worth £2-3 million get absolutely clobbered with IHT (or their children do) meanwhile the guy worth £100m is definitely not handing £40m over to the taxman. That’s what he pays tax lawyers and accountants for.

[@Wyrm1701]

Precisely. What will happen is that more and more farms and other enterprises will turn into trusts and the ownership of the trust will pass from person to person well before the 7-year cut-off for gifts comes up. Increasing IHT is simply going to make it worth while for more and more people to visit tax planners and the total tax take will diminish as a result.

[@phil291254]

All this and my existing pension has had 6K knocked off it overnight due to market confidence after budget - thanks Rachel and Starmin - time to reinvest abroad…..

[@prometheus4130]

you haven’t been investing in global funds? you need a better advisor

[@phil291254]

@ Yes - Mixed funding thank goodness but any local investments or European to the most part are non existent in portfolio….

[@Rosiedelaroux]

My grandmother is 93 - went through the war as a young girl raised 6 children. She says she has never seen such a rotten government- abuse of pensioners and an attack on those that have worked all their lives. She says- if you turn up in a rubber boat you won’t be cold thus winter in central heated hotels. And not paid a penny. The whole thing is a national disgrace

[@elliotpollard9083]

I disagree with her.

[@robhemsley9181]

@@elliotpollard9083I totally agree with her

[@diane.moore-]

Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.

[@Grace.milburn]

One crucial aspect of earning profits from stocks is to avoid being frightened and selling them prematurely. It is vital to understand that stocks should not be treated as mere lottery tickets. Consider acquiring the assistance of a financial advisor to navigate your investments.

[@mikegarvey17]

This is why I've entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to $780k, generating sufficient dividends for my household's needs.

[@ThomasChai05]

@@mikegarvey17Hope you don't mind if I ask you to recommend this particular professional you use their service?

[@mikegarvey17]

‘’Izella Annette Anderson’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@mariaguerrero08]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@KGreen1021]

I'm a Yank currently investing in UK businesses, but recent tax changes are making me reconsider if this is the best use of my money. It's unfortunate, as this could lead to job losses. Businesses are now considering hiring more contractors instead of full-time employees. According to basic economic principles, if you want less of something, tax it more. Tax investments, and you get less investment.

[@prometheus4130]

sure buddy

[@KGreen1021]

@@prometheus4130 Not your buddy, guy.

[@Hugh-nr5sx]

The Personal Allowance has got to mean something.! That means that kettle you once paid 20% tax on is now effectively costing you 50%. We need to detoxify from benefits especially taxing in one hand and paying out with the other and a much smaller State.! Otherwise like Ancient Rome the State will end up consuming itself..

[@Hemswell]

One can only hope.

[@chubbybrown4real]

I was always told you Come in with nothing and leave with nothing, it's what you do in between

[@kashd4668]

I do nothing in between! 👍👍

It really doesn’t pay to work these days.!! Iv worked all my life and still do but I think anyone getting on the benefits ladder is making a good choice.?

[@peacewalker7675]

You’re right! I lost a lot because of divorce ( property etc..) and found myself hard up at the time of retirement with just a bit in savings. I get all the benefits because of that. It’s all a big mess..🤦‍♀️

[@Stuart-f2m]

Life on benefits is rosy . Why Is half the 3rd world arriving on boats daily ?

[@Discodave007licencedtothrill.]

🤣 Just remind me how Truss and Kwateng’s budget cheered you up? Tell me how you having to pay more to use your private jets, effects me, please? 🤣🤣🤣

[@jafar4marva]

No. You are actually going to enter a means tested poverty trap if you do that. The loopholes and black market enterprises are rapidly being removed with the advent of AI and the semi cashless society. By all means spend and divest but think carefully because once you are in it you may not find it easy to rise above it.

[@thegrannyringmtb1818]

What I want to know is if I get taxed when my stocks go up will I get tax breaks on those which drop?

[@sonofsomerset1695]

Yes, if you sell them in the same tax year you can offset the losses against any gains, if you're fill out a self assessemnt tax return every year because youve gone over the allowance in a previous year, you can carry any net losses over for a further year if you report them via that I beleive, although that starts getting more complex. But not if youre still holding the stocks and they're just down.

[@nandojuace]

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments

[@LolMan-qy9cc]

It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days

[@mfmcintyre]

Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals.

[@JasperMaartenHoutman]

Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.

[@grizbaseball]

Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things

[@KaylaAnn11896]

Yes! I'm celebrating £32K stock portfolio today... Started this journey with £3K.... I've invested no time and also with the right terms, now I have time for my family and life ahead of me.

[@Happydale-ds5yp]

2:16 that's just a liability for employers. They government needs to stop the border crossings, remove the child cap and create a social cap for unemployed benefits.

[@rhysbevan429]

Benefit cap has existed for over a decade: www.gov.uk/benefit-cap/benefit-cap-amounts

[@LindenButters]

Having done the odd stint in care homes I could see old folk being skinned. At the end of life and when fitness wanes any capital left gets swallowed up in care costs. Either be lucky enough to have loving offspring to tend to you or get a long cruise or two. Its cheaper to stay in a luxury hotel and be treated to luxury than to endure cheap bread and jam in private care , with the risk of abuse to add a toch of spice!or a regime of mind deadening drugs to keep you quiet!

[@jeremyhares979]

It’s a rip off and a scandal that these institutions are allowed to strip people of cash and home to end up giving substandard care !

[@peterharris3096]

Private care costs are worked out not on the actual cost but on the average care home internment period and the average amount of equity in the residents home. £1500 x 52(weeks x 3(years) = £234000. The corporate care homes directors are those who like cash businesses, in particular corner shops.

[@jubrum2476]

I notice she punted the Personal tax allowance to 28/29 when this lot will not be in government! Its an awful budget with implications on the wealth of this country. We can certainly expect interest rates to rise for the appaling amount of borrowing.

[@Misiu223]

Higher interest rates, higher unemployment, greater social problems. All in all, a downward spiral of decay. Well done Theeves!

[@chrisclarkson7275]

She didn't change it. Hunt and Dunak set that.

[@andycooper4485]

It also doesn't help that the media, and yourself, talk about a 1.5% increase in NI whereas it's around 8%, a 40% decrease in the NI allowance and a whopping 80% increase in Capital Gains at the lower rate.

[@Reggie-j3n]

People of Wales 🏴󠁧󠁢󠁷󠁬󠁳󠁿Did you know the Welsh 🏴󠁧󠁢󠁷󠁬󠁳󠁿Labour MPs cheered and clapped when the winter fuel allowance cut vote passed Shame on them Shame especially the MP for RCT.. 🏴󠁧󠁢󠁷󠁬󠁳󠁿🏴󠁧󠁢󠁷󠁬󠁳󠁿

[@SevenEllen]

Your Labour MPs sound like our Tory ones.

[@EggchaserNZ]

Winter fuel allowance only affects those with assets valued at £1million or are NOT already on housing benefits or pension credit

[@jasonohare3557]

Excellent video as always George, thanks for your analysis on this. I may have to book in again with you sooner than we previously expected. Cheers

[@PrinciplesPersonalFinance]

Thanks Jason, hope you are well. 👍

[@Jackn-d8s]

Hallelujah!!!! The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻🙌🏻🙌🏻🙌🏻was owning a loan of $47,000 to the bank for my son's brain surgery (David), Now I'm no longer in debt after I invested $12,000 and got my payout of m $270,500 every months,God bless Ms Evelyn Vera🇺🇸..

[@Jackn-d8s]

Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!

[@sandalSanders-vt8ii]

Same here waking up every 14th of each month to 210,000 dollars it’s a blessing to I and my family… I can now retire knowing that I have a steady income❤️Big gratitude to Ms Evelyn Vera

[@Williammercy-zt9ou]

Absolutely! I've heard stories of people who started with little to no knowledge but made it out victoriously thanks to Ms. Evelyn Vera.

[@Vanzee-fb2xb]

I do know Ms. Evelyn Vera, I also have even become successful....

[@JhosueRey]

After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.

[@sauliusmaximus5783]

I suspect the tax raid on pensions has more to do with the additional income tax which will likely be raised. People will decide to take their pensions as income and pay 20% IT whilst alive rather than 40% IHT when they die.

[@neilcook1652]

Thanks for your hard work, very helpful and signed up for your newsletter

[@PrinciplesPersonalFinance]

Thanks Neil, appreciate your kind words and hope the newsletter is valuable! 🙌

[@johnmansell5097]

It appears to me that labour don’t want us to retire and work till we die.

[@applemanuk]

What a stupid comment.

[@thepuddlejumper500]

I believe all governments want this.

[@fortunateone6857]

They want you to own nothing and be happy🤪

[@Stuart-f2m]

That's exactly what they want

[@hgv1883]

Hard labour

[@RobinDixonprofile]

are you able to do a video on relocating to another country and taking your pension in that country? I'm thinking of moving back to S Africa to retire, I would like to know the following: Should cash in my UK pensions and transfer to my SA bank and reinvest in SA unit trusts for monthly drawdown? Should I instruct my pension provider and UK state pension to pay out monthly drawdown instalments directly into my SA bank account? In both of these examples, where would I have to pay income tax; HMRC or SARS?

[@laurencedixon8577]

I second that, please include tax havens!

[@MrTpain1945]

I 3rd that

[@brucecurtis6281]

Nah, Brexit means you can’t leave cos nobody wants you.

[@Woofersgalore]

First time I have seen your videos p. I really appreciate your straight forward information delivery. Have subscribed as a result. Thank you

[@PrinciplesPersonalFinance]

Thank you, appreciate your kind words and for subscribing!

[@Happydale-ds5yp]

18:01 unreal, we're trying to help the farmers, but now we're going to destroy them and with them, ourselves. Imagine targeting the raw food industry.

[@julesviolin]

It makes no sense does it ? Attacking the already fragile food industry . There needs to be protests from the farmers on this one ⚠️

[@Happydale-ds5yp]

@julesviolin they're struggling enough and any form of protest in this day and age is extremely limited. We'll start referring to farmers as 'far right' of they stand up to this nonsense.

[@william_marshal]

Bullshite, the change was targeted at people who buy up farming land to avoid inheritance tax!!!

[@johnharrison373]

Great information 👍 One problem. Too many adverts. KZbin are going over the top. Maybe it's time for a change. Let's get ready to.....

[@paulking2039]

Use Ad-blockers, then only see the occasional ad.

[@johnharrison373]

@paulking2039 Not on the Android KZbin app you can't.

[@jamesbarbour8400]

Exactly ! Good one !

[@johnharrison373]

@@jamesbarbour8400 Not if you're using the Android app.

[@johnharrison373]

@@paulking2039 Not if you're using the app.

[@paultune1696]

Bringing pensions into IHT is a massive blow for families. In order to do it Labour will have to rewrite trust legislation (as most personal pensions are written in trust), this may prove to be harder than they realise and have an even wider impact. Yes they gave us a 1p discount on a pint whilst potentially taking hundreds of thousands of pounds from pension beneficiaries and pensioner's families. Horrible.

[@bikeman123]

Most personal pensions are not held in trust. That was the case for defined benefit pensions where the lump sum on death was discretionary. But even that means the money leaves the trust when paid. Most penaions now are defined contribution which are basically nothing more than a share/fund portfolio and pretty easy to tax when sold, which it will have to be when the owner dies.

[@MrTpain1945]

Thank for the excellent content ❤❤❤

[@stevebrice2279]

There will be a lot of people being laid off work

[@garethwilliams4467]

no not really .. that is the beauty of the zero hours contract, they will just get their hours reduced and don't show up on any figures.

[@rhysbevan429]

Only if the company is near failure in any case.

[@user-yl6de8el6g]

@@rhysbevan429 I fear a lot of smaller companies are near. No need to push them over the edge though is there ?

[@paulhiggins8774]

When are tax rises going to stop I have been having these for the last 50 years except once or twice a couple of quid better off. But the norm is get the working class to pay more taxes, the bubble will burst one day when people would have had enough. Can’t the government just stop spending our money and expect more every year. I would like a deep scrutiny of public and government spending

[@CROSSNSHOOT]

How much should we look for out net worth to reach as a target before considering leaving UK to escape this prison? Asking for a friend😅

[@stephen2203]

🤣 🤣 🤣 🤣

[@brucecurtis6281]

Ah. But the Brexit benefit means you can’t move to Europe.

[@CROSSNSHOOT]

@@brucecurtis6281 Europe is broke! Hiring and Labour is too costly and workforce is unmotivated plus high taxes. Middle East or Asia for me

[@CROSSNSHOOT]

@ Europe is broke and is on the decline! Asia and Middle East actually offer people who are aspiring in life

[@WilliamSherratt-c1o]

Thank you for explaining things in a way I can understand. Many thanks william

[@Soulboy63]

Horrible looking house for 700 k !! It's nuts Home Office figures cited by the Financial Times in August last year showed that the annual asylum cost reached £3.96 billion in the year up to 2023-double that of the previous year and six times higher than 2018. Yet, despite that astronomical cost, we continue to increase handouts to France to stop the boats.

[@_Rafiki.]

It would cost less to assist with stopping wars.

[@railwaymaniac]

So if an unused pension pot is becoming liable to inheritance tax is it then tax free when taken as a pension? OR IS THIS THEN DOUBLE TAXATION ????

[@adoptedscot]

No double taxation as I understand it.

[@railwaymaniac]

@@adoptedscot Oddly enough, this exact question came up on 'Martin Lewis' last night, and their answer was YES - with a total of 67% tax ... 🤢🤢

[@Happydale-ds5yp]

Why is raising minimum wage a good thing? I'll only be paying higher rates to more skilled employees and by April I'll faze out the younger staff. Let tesco take them, if they can foot that bill.

[@wordysmith]

I already worked out earlier this year it was time to step down and spend my savings before we “own nothing and be happy…or else”. I’m 53 and I worked in IT, I realised I earnt less than 2010 and was killing myself

[@nedmurry7283]

As they say you can't take it with you. So spend it whilst you have it to enjoy things and see the world. Ensure that the Govt doesn't get their hands on it best you can. Sell your house when you feel right time and go on a cruise so that YOU enjoy your hard earned money before 75 touring the world. Let your kids be self sufficient so that they aren't relying on your money. It'll be better that way.

[@louisem6295]

Great video. So once 40% IHT has been paid on an inherited pension fund from someone over 75, does the remaining money now come out of the pension fund having been taxed, or does it stay in and get taxed again at the marginal rate of the beneficiary when they take the money out as an income? I've heard two conflicting opinions on this.

[@joannekelly5132]

Taxed again

[@louisem6295]

@ I’ve seen that now - it’s a real raid on pensions,

[@Simonpocarroll]

I didn’t quite understand if the pension death benefit is still ( due to nominee/left in trust aspect) outside inheritance tax? I hope/presume if this pays out and goes to spouse it’s tax free still ?

[@PrinciplesPersonalFinance]

Hey SImon, all the changes are subject to consultation so could change but as it stands on the proposal the spousal exemption still applies. The problem is IHT will then be charged after it goes to the next in line, such as the child. The longer-term planning considerations are that the IHT bill now will be MUCH bigger, and strategic planning will be needed to get the balance of tax planning and tax bands between partners across their lifetime. (If they are concerned on IHT, of course)

[@MarcusPearson-pi6uv]

@@PrinciplesPersonalFinance definitely going to create a boom in sales of whole of life insurance policies written in trust to cover the likely IHT liability on an estate. Part of my instructions to my financial adviser will be to create this policy for my wife when I die, using income from the retained pension fund to pay the premiums. At least that will negate the need for a cash withdrawal from the pension fund when she dies to pay the IHT liability and at the same time incur an income tax bill for my kids and reducing the remaining invested value of the fund. The plan is to allow them to draw 5% per annum from the fund as supplementary income but leave the bulk invested to continue to grow.

[@Dr.JubairsFinance]

Well explained George!

[@PrinciplesPersonalFinance]

Thanks. I appreciate you watching and the support! 🙌

[@chesshooligan1282]

"I think an increase in the minimum wage is good..." The minimum wage is always zero -- Thomas Sowell

[@thecrankster]

Definitely going to QPROPS out of the UK now. A lot of Londoners are not from the UK and will leave based on these changes once their careers are mostly done and kids have finished school. That’s not a threat. It’s just reality. No exit tax for the moment as well.

[@andyodoherty1323]

Self invested Personal Pensions are for just that Self - spend it that'll stop the issue - if you want to give to your Children, borrow the money and start a SIPP for them at birth

[@PrinciplesPersonalFinance]

That's an interesting thought and while I agree on that in general... I do think bringing it all inside the estate will cause some unintended disincentives and consequences and a limit for pensions under IHT would have been better to avoid that.

[@andyodoherty1323]

@PrinciplesPersonalFinance well she didn't, and those who want to pass money on tax free will have to continue marrying their daughter or son in law before death

[@PrinciplesPersonalFinance]

@@andyodoherty1323 🤣🤣🤣

[@timeparty718]

Many advisors recommend taking just the interest on your pension pot as income, this is actually a falsehood, you need to estimate your likely longevity and drawdown the capital over say 20 years as well. As such, the size of your pension can be far less than £500,000 for a good income overall. The aim is to die happy with nothing left to tax.

[@Joe-lb8qn]

This will be a big hit to my kids not to me. And im by no means in a small minority. I know many people with around a million for a house (just the prices down here) and same for pensions. Makes me slightly more inclined to spend more from my pension now

[@PrinciplesPersonalFinance]

Yea, the impact of spending on pensions is massive. A single person with a child (let's say they are divorced) now could have a house worth £325k a pension worth £175k which over 30 years is not much and they'd be in the scope for 40% tax on death via IHT....

[@EbenBransome]

This is where you need to understand macroeconomics. The government *wants* you to spend rather than hold onto large pension funds, because this will result in some economic growth and offset the increase in NI. So you're doing what Reeves intended all along.

[@TheSilvercue]

@@Joe-lb8qn same boat. I hope this lot get kicked out next election now

[@Durnyful]

​@@EbenBransomeDepends on if you have other assets in trusts that protect against it but from which you draw income which could be reduced

[@1000mjf]

im worried about my job situation raising national insurance that employers have pay could also put employees out work

[@niceandcurly]

They COULD've taxed the rich, like the 1% more. They didn't.

[@robertjones3189]

People didn’t vote for that.

[@william_marshal]

wake up dopey. The £40Billion tax rises will be paid by the rich !!!

[@johnbrotchie4465]

The top 1% pay 30% of income tax. Is that not enough for you? I suspect from your post you that you’ve never heard of the Laffer Curve

[@KharmaComa123]

The tax on agricultural land is a massive- albeit understated step in that direction. Much of the land is owned by very wealthy familiies.indivuduals/royals.

[@paulking2039]

@@robertjones3189 They didn't vote for them not to be taxed. They'd have voted Tory otherwise. Time the millionaires and billionaires paid up. Who needs a 48bn a year bonus ? no-one can spend so much. Take a look at the abandoned Rothschild mansions on this site, they have so much money they just leave them to be abandoned. They don't need all this money.

[@caparn100]

Farms have increasingly attracted interest from stockbrokers and traders due to the advantage of inheritance without tax implications. This loophole made agricultural land a sought-after investment vehicle for wealth preservation across generations. Recognising this, regulators identified a need for policy reform to address the disparity and ensure fair tax treatment across asset classes.

[@Equitybonds24]

Thank you. I am personally not surprised that Labour have targeted the 'wealthy' but do not quite fully understand the implications on ordinary peoples estates. Whole of life insurance may be interesting for farmers who may be hit by the IHT bill. What are your thoughts?

[@PrinciplesPersonalFinance]

Great comment. I think you're right that they haven't understood (or maybe they have and they know) quite how many estates are going to be affected and how the backlash against 'the most hated tax' is going to kick in. Whole of life can be an option but..... it's expensive. It has to pay out as it's for life so unlike term for someone in retirement trying to get a couple of hundred thousand in cover can costs thousands a year in premiums. Lots of main res, unlike term for someone in retirement, trying to get a couple of hundred thousand in cover can cost. Main residence nil rate bands are going to get tapered too!

[@LurchLures]

Over 60 and still working. And paying income tax. If I overshot on my pension savings at least my kids would benefit was the thought process. Not any more.

[@hugheaston7598]

The average healthy life expectancy is only 63. People live a lot longer than that of course, but on average, 63 is the age where you start to develop age related health problems that limit your ability to do things and enjoy yourself. If you're planning to have an enjoyable retirement, I'd suggest retiring now if you can possibly manage it. Otherwise it'll be too late and you'll have missed your chance. Once you start developing age related health problems, they don't get better, they keep getting worse!

[@clovermark39]

That was the problem they kept fudging the term working people instead of just saying wealthy or poorer people!

[@barados2006]

I agree, everyone works, but some are more wealthier than others.

[@The_Scienceboy]

The poor have suffered for the past decade, so it's good to see some relief. I will probably be adversely affected, but we need to stop the drain of wealth into the pockets of those that have the most (and some would argue, do the least in some cases)

[@darrenelkins5923]

They want big business to buy up the farms

[@hugheaston7598]

Knowing Labour, they'll probably all get snaffled up for rewilding, solar farms, and conversion into housing estates for migrants.

[@vc2616]

Thanks. Subscribed to your channel

[@ymwan]

Kundus, the first video i have seen today that has discussed the long term impact of iht on pensions. IHT pulling in pensions has such far reaching consequences but people just have not realised it yet. No incentive to put money into a pension and have the money tied up for decades only to be robbed at the end of life (you have no control when you die). A single person can only have a maxium of 500k iht free with pension, house and cash in hand. If the house is 250k, a pension of 250k will only bring you an income of 10k before you will be hit with iht. Watch the number of people having to pay iht moving forwards. Folks will opt to put money onto isas instead, so watch out for the government to hit that next. They aint stupid.

[@azimiqbal84]

I got a feeling the only workaround will be leaving everything to spouse, as there is no IHT payable to transfers to a spouse unroll second death

[@ymwan]

@azimiqbal84 it's not just about limiting iht exposure. You need a large pot to survive to 90 (due to inflation and market fluctuations). With your house eating into your iht allowance you are limited to how much you would want to hold in your pensions. Otherwise you might as well spend it whilst you are healthy. This is a cap on trying to look after yourself. And of course civil servants won't have this problem. This is a much bigger social problem than having to pay iht upon death

[@PrinciplesPersonalFinance]

I think it certainly has changed the dynamic quite a bit on pensions and ISAs!

[@gug1970]

aren't ISAs already part of your estate and therefore a target for IHT ?

[@ymwan]

@gug1970 yes and so are pensions now. But isas are free from income tax until you die and you have access from day 1 instead of 57+

[@briansimon4363]

During your NI explanation, you didn’t mention the increased allowance to £10,500 keeping micro businesses out of the increases. The IHT situation is dire! My wife and I have managed without my Drawdown pension whilst it recovered after Liz Truss crashed the economy. We were comforted by the prospect that, should I die first, it could generate a pension to replace such of my state pension died with me and when she died it was a leaf act for our children’s pension pots. This ‘legacy benefit’ is now under threat. I’m not making any knee jerk decisions but we are minded to drawdown income which we can then gift to our children utilising the ‘surplus income’ exemption if necessary, to transfer my pension to them over whatever time I have left. The nonsense of this position is that should I exhaust my pension, I will then cost the State more should I need to go into care!

[@lulabellegnostic8402]

What is the incentive for anyone to get a job?

[@zantas-handle]

Starmer is an ardent Socialist - in Socialism there is no incentive to work, that's why it always fails, but he doesn't care - he's lining himself up for a global role with the World Economic Forum once he's finished dismantling the UK economy.

[@emailsph3282]

Very little. I've left my professional job and pay absolute minimum tax possible. I'm not playing their games any longer. I'm out.

[@ColinWatters]

With the CGT threshold so low some people will pay more in accountants fees to calculate it than they do in CGT.

[@EbenBransome]

Why would they need an accountant to do what for most people is a very simple calculation?

[@ColinWatters]

@EbenBransome Many need accountants to do their return even without CGT.

[@EbenBransome]

@@ColinWatters Anyone who needs an accountant is unlikely to be paying so little CGT that the cost of calculation exceeds the tax. Though yes, I do know of some small businesses who employ an accountant out of vanity rather than need.

[@bikeman123]

Averaging the purchase price of purchasing shares over a number of years, which is necessary for cgt calculation is not easy.

[@EbenBransome]

@@bikeman123 If you are trading in shares it's just one of your problems. For normal people, the investment company works it out for you.

[@1MarcAdams]

A lot of change coming for a lot of folk, doesn't seem right or fair

[@rhysbevan429]

People voted for this government. They said the richest would pay the most. It's willadapeople.

[@INSOLESandLACES]

Many benefits are for people in work. Benefits shouldn't be required for anybody who is full time. Our taxes shouldn't be used to subsidies shareholders profits.

[@KKLEIN-qz8zg]

You are missing the bigger pension issues. How will the inherited pension be taxes for the receiver if die after 75. Still subjected to income tax? Will that be only on gains after inherited? Time to pull money and give away 7 years before die. If so that, government has not achieved much!

[@SevenEllen]

Well, given the absolute car crash they were handed after 14 years of austerity, no one could have done anything else with it. It's like telling someone to live comfortably in a burning house.

[@mellarner8253]

@@SevenEllen Austerity will deepen much faster now. The workforce will dwindle further now as employers with 10 or more employees are going to look at significant cuts, otherwise prices will go up and add to inflation. One way of making cuts will be to halve working hours from 16 to 8 hours a week for part time workers, those workers will likely claim higher benefits. This budget discourages working for a living and saving for retirement. The other side of the coin, where extra funding goes to public services such as the NHS, as the increase will not even cover the growing numbers needing their services at the current rate of population growth. All in all, it will inevitably end with ever higher borrowing, not at all unusual for Labour.

[@jamesmhunt]

Yep - a 64% effective tax rate on the inherited pension on death after 75 (i.e. 40% IHT + 40% of the remaining 60% in Income Tax by the beneficiary) is an absolute killer. Better to just withdraw as much as possible, taking the 40% income tax hit and pass it on 7+ years before death - and hope that your kids will hold on to at least some of it to look after you if you run out of money in later life 😕

[@Coldswimmer08]

I'll take the assisted dying option at 73 . No tax (for now) . This will help not paying me a pension , heating allowance or care

[@Durnyful]

​@SevenEllen Pardon? Previous govts have inherited far worse positions from Labour govts. Just thank God they were not in power during covid or the national debt would have been far greater. This budget is anti-growth, that is the main problem. If the uk economy can't grow at a decent rate the decline will continue & probably accelerate

[@Nickcirrus]

Great video, eloquently explained

[@PrinciplesPersonalFinance]

Thank you!

[@ianwhittaker3041]

So has the strategy for parents who want to pass wealth on to their kids changed from a focus on pensions to ISAs..?

[@ab36935]

both are subject to Inheritance tax now.

[@JamesKerr-z4o]

It’s just an opinion but leaving paying IHT on a total legacy of over £1,000,000 sounds fine to me. If you have three kids this is £333,333 to each of the tax free when they are in their 40s or 50s.

[@PrinciplesPersonalFinance]

It will certainly change the maths!

[@Durnyful]

Focus will change to Trusts from which an income can continue to be drawn

[@davidbwhitehouse]

Rather a mean budget with a lot of bias between the public and private sectors - the private sector pays for everything, while the public sector is totally protected. The public sector should be remunerated on exactly the same basis as the private, so everyone understands what a £160,000 cabinet position really means.

[@HafizYazeedi]

Punishing Landlords makes the Tennent's to pay higher Rents, Punishing Employers shall makes the Workers to pay by more work load.

[@bitsandbobs4082]

The best thing for pensioners would be to allow them full access to the pension pot as then the annuity provider's would have to complete not just with themselves (as if they do) and the withdrawal of this weath would mean it would not be pocketed by the city,

[@chrishouse6924]

IHT, is it not the case that a RICS surveyor values the house for IHT. What they value a house at can be far from what an estate will say and indeed what someone will pay for it.

[@PrinciplesPersonalFinance]

Thanks for watching Chris, I can't say i'm an expert on house valuations for the estate but this is the suggestion from Co-Op Legal Services. My understanding is that the open market value is typically used. So while I'm sure there can be differences of opinion, personal representatives will need to be mindful of challenge from HMRC if any answer comes back in a way which creates a big diffference in valuation... 'The local estate agent may seem the obvious choice for valuing a property, but if the estate is liable for Inheritance Tax it's a good idea to get a valuation from a chartered surveyor instead. A surveyor will have the experience and knowledge required to provide a valuation specifically for Inheritance Tax purposes, so it is more likely this valuation will be accepted by HMRC. The property valuation is potentially subject to examination by the District Valuer Services (DVS) of HMRC to ensure that it is accurate. If they feel that the valuation is not correct, they will challenge this and request evidence to support the valuation given. If HMRC believes that the executors or administrators have been 'negligent' in how they valued the property, they could impose financial penalties. If you realise the valuation provided to HMRC is too low, you will need to update HMRC with the correct value.'

[@chrishouse6924]

@@PrinciplesPersonalFinance Just been through IHT. I complied with the form and my house valuation was carried out by a RICS surveyor. Too much hype and scare mongering over this.

[@TaiwoOmotosho-m9v]

@@chrishouse6924 How did you get the right RICS Surveyor and did you renovate before the Surveyor arrived,Pls?What was the costs of the Surveyor 's Services?

[@macroman54]

I still haven't picked up from this (sorry) or anywhere else. But do pension pots fall under IHT rules when a pension is already in payment? I have three current works pensions in payment, the biggest is from a defined benefit scheme (final salary) and two other smaller ones from defined contributions. I took a lower pension to ensure that my wife would get the usual 50% if I should die before she does of which she would obviously pay income tax on..

[@PrinciplesPersonalFinance]

Hi, under the current proposal, a dependent's pension from a defined benefit pension will NOT be included in the IHT calc. This is a proposal and it will be confirmed closer to 2027 so is subject to change. Having read the proposals, one area I do not like is that an annuity (where you take your pension pot and buy a guaranteed income for life) for a spouse appears to be INCLUDED in the estate for IHT. So, it seems if you are a private individual with a non-guaranteed workplace scheme (like most of us outside of the public sector and politicians), then your dependent's pension can be outside of the estate for IHT.... yet if you use your non-guaranteed workplace pot to buy a guaranteed income and then it goes to your spouse. For some reason, that is IN your estate for IHT. That seems just unfairly preferential to the public sector, and it seems very hard to see past the fact that politicians favour their own interests over private individuals, which whatever you cut it seems unfair. That's just my view, though. (I'm aware this comment may bring about others' comments like 'What did you expect!? etc... However, cynicism aside, it's not good to see actions that appear so biased.)

[@dazzaheather]

@@PrinciplesPersonalFinance This and applying both IHT & income tax to DC pensions when over 75 both seem to be unfairly penalising those with DC based pensions, which is typically those in the private sector. I would definitely argue that the previous DC rules were too generous as I never understood why anyone dying under the age of 75 meant there was no tax paid, but I believe the background to this was a view that people were just not investing in their retirement and restriction such as enforced annuity at 75 were a major contributor to this lack of invest. Both DC & DB pensions schemes have their own positives and negatives, but ultimately we need to ensure that both are attractive to people to ensure they invest in their own retirement. I feel these proposed DC changes not only reset back the original lack of investment problem, but also as you state create a strong feeling of unfairness between how DC & DB pensions are being treated

[@rogersmith5167]

Reeves, another product from the London School of Economics like the financial invalid Gordon Brown and look what a mess he left behind

[@Durnyful]

No more boom/bust... a genius 😂

[@LaaraCopley-Smith]

Can you imagine what 20k will buy in say 10 years ... probably only cover utility bills !!! Enjoyed this simple explanation and only just discovered the channel.

[@PrinciplesPersonalFinance]

Thank you, appreciate you watching and your kind words.