UK Pension Changes Announced in the Budget - A Balanced Review

[@militaryorderly5386]

My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to larysa Caba, my portolio is doing really great and im proud of the decisions i made last year.

[@militaryorderly5386]

Making over 48k monthly is all because of her.

[@annddyyy-6920]

I feel one Of the greatest challenges that we first timers face in the ma rket is that we end up losing all we have,making it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thanks to Larysa Caba. I now make huge profits by weekly through her services while still learning to stand on my own.

[@dominicleong4385]

I think she trades for everyone I meet. I met her twice at a meeting in Germany and after her lectures from Ella I had to personally ask her to be my financial advisor. she is definitely good.

[@jasperflontes4289]

I have never seen a trader as open and transparent as Larysa Caba with her clients. The way she decides to make a profit for her clients. she allows you to express your fears and she still rests your fears and that is my respect. I don't normally comment on videos, but this word should be included. she is really cool.

[@ivarlast2966]

I just looked up her name online. she is licensed with credible certificates and has an amazing track record. Thank you for the message.

[@morata-pw]

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.

[@duanec.duanec.sutherland5292]

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.

[@RyanCoycox]

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.

[@johnlawton-y1d]

This is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing

[@RyanCoycox]

I take guidance from an advisor ‘Kathie Daisy Bosco’ To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@terencereeder9830]

Don't think Chancellor finished yet wait till the next one.

[@thaibillyboy]

I totally agree, its my feeling she was reigned in as we say , she was planning a raid on pretty much everything from pensions, council tax, Isas and whatever she could gain from our pensioners, be prepared for round two, if she had got away with what she wanted Labour would never be in power again in a lifetime. Which would be a good thing.

[@rob-fb5xs]

That’s what i was thinking.

[@hannible1002]

@@rob-fb5xs Me too!

[@canderson1955]

You would do well to invest in a microphone for outside filming. 😉

[@andygreenfield6320]

Worked hard all my life . Accept obviously paying tax on my pension but having 40 percent of my pension pot that wanted to pass on to kids that is my hard earned savings is theft. Hoping I live long enough to see conservatives reverse it .

[@maria-pv5pg]

No we didnt know . I found out today that there is an end to Pensioner Cost Of Living Payments. The man at the DWP explained that this is because there is no longer a Cost of Living crisis. Then I discovered that the fund given to councils for the most desperate is also to be stopped. The winter fuel payment was just the headline. they were prepared to admit

[@Casey-Jones]

Oct 2024 Budget: pensioners winter heating allowance GONE, pensions free from IHT GONE April 2025 Budget: pension tax free lump sum REDUCED, pension contribution tax relief REDUCED April 2026 Budget: state pension MEANS TESTED

[@lawrencerees8741]

You forgot: April 2026- country in chaos

[@mistifyme999]

Thank you Dianne, very helpful and informative

[@CVOO7]

A great and much needed summary Dianne and I'm glad to see you getting a change of scene !

[@johnlindsay3820]

Really helpful - enjoy your holiday 😎

[@DianneSullivan]

Thank you!

[@Hemswell]

'Could have been worse,' you say. What, like being told that private sector workers had to donate a kidney just in case someone in the public sector needed one?

[@kw8757]

Well, the government would probably say if you've got two kidneys you've got the broadest shoulders...what on earth do you need two kidneys for? Thats just greedy.

[@molex114]

That would be hilarious if I wasn't so possible with this lot

[@OneAndOnlyMe]

@@kw8757 Well, isn't that what most of us would do for a close friend or family member?

[@kw8757]

@@OneAndOnlyMe Who mentioned close friends or family members? We're talking about strangers to whom we owe nothing.

[@davidplanet3919]

Love the hat at the start. 🧡

[@marton349]

I dont know where you are but hope you are enjoying it Diane.

[@DianneSullivan]

Thank you!

[@Andy-gb4yr]

SP increased 4.1% whilst train drivers got 15% over 3 years it's going to be interesting to see how the SP rises compares

[@BLOCKsignallingUK]

If that's the S&P500, then its riding high on Trump's win, and is at an all time high, again.

[@mark-se6ef]

retire early no point working yourself to death, or continues as a slave.

[@OneAndOnlyMe]

Go to school >> get good grades >> learn a a skill that is valued >> change jobs every few years to boost salary >> save as much as you can >> retire early.

[@bsmith5404]

Or find a job you enjoy and be happy working.

[@vanzandt8809]

Behave most don't have that choice

[@johnporcella2375]

Retire early? And risk a long and impecunious retirement!

[@MarieWentworth-p2h]

I’ve got to say, after seeing my investments grow by nearly £750,000, these new UK pension changes in the budget have me rethinking a few things. There are some real benefits, but also some catches to be aware of.

[@HassanBin-t9z]

Wow, £750,000? That’s impressive! I haven’t really looked into the pension changes yet. What’s your take on them?

[@MarieWentworth-p2h]

@@HassanBin-t9z They’re definitely aiming to make pensions more flexible, but it can be a mixed bag. On one hand, there are potential tax advantages and higher contribution limits, which are great if you’re investing wisely. But on the other, relying solely on pensions without a diversified strategy can be risky. My portfolio manager helped me build a mix of assets that keeps my retirement secure, no matter how policies shift.

[@SophieDubois-m8d]

@@MarieWentworth-p2h Makes sense! Who helped you figure out the right approach?

[@MarieWentworth-p2h]

@@SophieDubois-m8d My portfolio manager. She’s been key in showing me how to make the most of these changes without relying too heavily on any single policy or account type.

[@HassanBin-t9z]

@@MarieWentworth-p2h Sounds like I could use that guidance! How do I find her?

[@darrenrichards27]

Do you know if there will be double taxation on the pension pot following death after the age of 75 i.e. 40% IHT plus the beneficiary having to pay tax on the remainder left in the pension at their marginal rate. This would mean an effective tax rate of between 52% and 67% on the pension pot.

[@robjordan63]

Yes, from reading the consultation paper, that is exactly what is proposed.

[@Garymanders]

That would only apply if pension pot is over the threshold that is applicable to you and that extra taxation would be on the amount over the threshold only and not the whole pension pot

[@darrenrichards27]

@@Garymanders Thanks I understand what you are saying but if you were already leaving assets of 325k utilising your full allowance in addition to the pension, under the old rules you would pay no IHT at all on either, but under the new rules you would now have to pay an additional 40% in effect on the full value of your pension, although part of this charge would now be apportioned to your pension and the rest to the other part of your estate. But in effect the overall additional 40% charge under the new rules would be equavalent to a charge on the entire value of your pension pot. The proposals make the calculations a lot more complex now and i think the average person may struggle to understand them and the potential overall effect. This situation makes effective additional tax rate potentially even worse than I had previously stated as the beneficiary would lose a large part of the allowance on the 325k which was previously tax free and be left with a larger pension than in my example that they would have to pay tax on when they draw fron it. I guess the message to take from this is if you are already using up your full allowances with other assets its better to not leave anything in a pension as you will be so much worse off under the new rules so try to spend the pension first.

[@OneAndOnlyMe]

That's not double taxation. One is the inheritance tax is on the transfer of the asset, the other is income tax.

[@dazzaheather]

The justification used by many for IHT even exist is because the beneficiary is receiving "unearned income" from the passing of the estate. Whilst not 100% in agreement to this statement I can see this is a valid reasoning as to why a level of tax should be applied. But given this statement I then fail to see how this is not double a taxation specific to the pension part of the estate. I also don't see any justification on why those over 75 would now be treated differently than a clear decision to take more tax off those who die over 75. (Effectively a death tax...not IHT).

[@grahamrowe6278]

Thanks for the heads-up Diane.

[@tancreddehauteville764]

I was surprised that pensions were left largely untouched. I was expecting the LTA to be restored, at least.

[@sid35gb]

Leaving the LTA unchanged is to reduce the amount of doctors, consultants and o the high skilled key workers taking early retirement because they were already hitting LTA and they want to improve the NHS not damage it more.

[@stephen2203]

Diane, I was widowed back in the 90s and never remarried. Does that mean I am entitled to at least £650k nil-rate band?

[@molex114]

So they give you 20% tax relief on your pension then if you were u der the allowance for IHT making your pension part of your taxable estate means more people will have to pay except its at 40% then they pay 20%. So just spend the lot before you die. That said ive got at least another 10 years before retirement and a few more after that untill i snuff it so thats quite a few budgets to go and hopefully only 4 more under labour. Hopefully who ever gets in at the next election likes old people and humanity in general

[@Garymanders]

IHT affects your beneficiaries on the sum that is over the threshold..if your combined assets with property are over £500'000..for example £50'000 over the threshold the IHT would be paid on the 50k only and not the whole pot...don't know your circumstances but this wont affect the vast majority of people

[@JustinUK]

@@Garymanders no £500k allowance passing to a parent though :-(

[@davehenderson3247]

Thanks for clarifying that it doesn’t effect passing on to your spouse, we were worried this would effect us as know one had mentioned that.

[@richparnold]

I agree it could be much worse, no reduction in lump sum allowance or change to tax relief on contributions. Interested by the comment on DB lump sums, are you saying this can be taken at 55 without also crystallising the rest of the pension?

Some DB pensions pay out lump sums on death so I wonder if the lump sum will be subject to IHT even if the reduced yearly pension isn’t

[@dominic8218]

Just means we need to be more conscious of gifting and use of trusts. Don’t think they have finished yet and the lump sum will be affected in a few years when they look to raise money again!

[@ymwan]

The most understated part of the budget is the bringing in of pensions into IHT including farming (farmers should be calculating winding up costs right now). The IHT change has effectively created a NEW LTA of 650K for a couple. You now have as a couple only have a pot of 650k (whether it it in a SIPP, ISA or GIA) to generate income for your retirement (4% of 650k = 26k income for a couple) . Any exposure above this immediately opens you up for immediate 40% additional tax or more (if you die above 75 it becomes 52%). And because you don't know when you will die (and due to market fluctuations you would normally err on the side of a bigger pot, but with a 40%+ tax hanging over you, one would be inclined to blow the excess. That's for the fortunate ones that can max out this new imposed limit. Yes, one can buy an annuity, but thats why the pension reforms were done to allow more control of your destiny because everyone's health, desires and family circumstances are different. It's your savings you should spend it as you like. Why should giving away money to a politic party reduce the IHT bill? All of these do not apply to civil service pensions, but of course one forgets when the goose is dead and there is nothing to take anymore who will pay the unfunded pensions? This budget has decimated the pension industry IMHO, and enslaved the future generation (they just haven't figure out the maths yet). And imposed a £1M cap on wealth (hence the farming and entrepreneur £1M exemption). Those with a potential retirement asset pool of 650k+ will look to strip themselves by gifting and/or moving aboard the money.

[@MrKlawUK]

how would it apply to a civil service DB pension? that’ll die with the second partner - would you prefer no inheritance, or an inheritance subject to some taxation?

[@alanpaulley9271]

What can you pass on down the generations under the 7yr rule ?

[@andygreenfield6320]

Any amount you like so long as you survive 7 years otherwise tapered .

[@robsmith3539]

It was very hard to hear you properly when talking about the inheritance tax towards the end

[@martinbishop2966]

Could of been better! ☹️

[@antoniadavis3701]

It will get a lot worse. Labour now taxing pensions up to 67 percent announced yesterday. Get them out

[@aficio698]

The worst is yet to come in the following spending reviews and budgets. No cause to celebrate.

[@ianbarnes961]

DB pensions can be passed on, in part, to a surviving partner or other nominated beneficiary.

[@DianneSullivan]

Correct, I said that other than the spousal support there is nothing to bequeath with DB pensions. Bear in mind that not all DB pensions have a spousal component and even those that do its often a significantly reduced amount. There is no pot of money at all to leave to your children with a DB pension unless you cash out and convert it to a DC. So there’s no IHT to consider for DB

[@putradfr]

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

[@tammarasietsema]

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

[@DeborahJackson-v2t]

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

[@JerryFacts790]

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.

[@TomChandler-tc7bc]

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

[@PastorZack-wz9gv]

I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.

[@leobrown6875]

I get my pension in 15 months time I will take the 268k then I will spend the rest on things that will appreciate for my daughter .and I will gift these straight away everything else will go into a trust

[@JustinUK]

A £400,000 IHT tax bill from 2027 on passing my pension pot and house to a parent, for it to then end up in care fees on my death is not too bad, I think they will think not.

[@johnristheanswer]

How much worse could it have been than 40% tax on your pension , then your heirs getting tapped for another 20% ?

[@OneAndOnlyMe]

I think bringing pensions into the estate is fair. Spouses won't pay any tax, but it is right that children and other members of family should rightly pay inheritance tax as they are receiving wealth they never earned. Pensions were created for retirement funding, not as something to be used to avoid tax on wealth being handed down.

[@SteveKestin]

Absolutely agree! You save into a pension to fund YOUR retirement. Not to be able to avoid taxation on assets when you die

[@BLOCKsignallingUK]

Perhaps consider passing your pension on to your children rather than spouse in the event of your death (assuming the spouse is otherwise provided for). This would probably reduce the IHT on the spouses eventual death.

[@DianneSullivan]

Unfortunately it's only to your spouse that you can pass on your estate without incurring IHT charges - and it's a deferred tax of sorts because the IHT will be payable upon their death.

[@raghbirsandhu2092]

I enjoy watching your posts, but today there is a lot of background noise.

[@DianneSullivan]

Sorry about that

[@johnrigby5445]

Very informative however somewhat spoilt by the poor sound quality outside.

[@Mikey_NoCap]

Thanks for the update. I fear the ‘it could have been much worse’ should actually be read as ‘wait until the next few budgets when they sweep up the rest’. I have little faith / trust in this government now and it makes trying to plan both retirement and IHT a dangerous game. I fear that this will kick off a series of rash decisions from people focussed on looking to avoid IHT rather than the long term stable planning that we have become used to.

[@Misiu223]

100% agree. This is just their first budget and look at what they have already done

[@kalpnashah4030]

Totally agree it’s burden to save now

[@kalpnashah4030]

What’s point in saving to grow your estate so they can charge children 40 percent i spend then die

[@prometheus4130]

lets just rejoin the customs union and then improved trade taxes will pay for it 👍

[@johnpeters7003]

Whoever was putting out all the scare stories was not doing anyone any favours. Even my financial planner was worrying about them. But, as was evident from your video, most of the stories turned out to be just scare stories. It did not help that so many otherwise sound KZbinrs were repeating the stories. I know you were trying not to join them, (most of the time). There were many good things in the budget, but our media is not focusing on these. Many of the ‘bad’ aspects will be worked around by people such as yourself for clients affected. It was nice to see you get outside but the outside sound was difficult to listen to.

[@richardwhite1120]

This government is one of the most competent and trustworthy I have ever encountered in my 63 years on this earth. People of real substance and integrity, an inspiration to us all.

[@jimrose8689]

Thank you Dianne. Very well explained. I gree, I beleive it could have veeb a lot worse but I feel there's still more to come over the coming years from the Envy Party. We try so hard to ensure we set ourselves up for a good retirement and the bonus of knowing the children will get some sort of windfall once we pass on. We have worked so hard for this. Sadly, there are those who have not with a very much live for today attitude knowing that thier party will attack those who have tried so hard to do the right thing.

[@Hemswell]

Doesn't this budget effectively make the role of financial planners and advisors redundant?

[@marksmallwood4938]

I think it will make them even more valuable as other avenues will have to be explored to help people mitigate IHT.

[@DavidJarrold-e7j]

You mean all the experts who failed to predict anything pension related in the budget?

[@papi8659]

After months of hysteria ....

[@pip1723]

Great budget massive investment in public service's and the NHS something we'll all benefit from .

[@colinrichards3012]

Your final summing up is your opinion only. As you are too young to be affected by major budget changes yet, you aren't in a position to comment.

[@DianneSullivan]

I don’t understand your comment about me (or anyone else in fact) being too young to be impacted by major budget changes. Pension planning should be approached as a long term strategy. I’m curious to hear why being in your 50s is too young?

[@Desmond.TuTu.]

@@DianneSullivan take it as a compliment as he obviously thought you were much younger 😜

[@DianneSullivan]

@ I hadn’t thought of that! Thank you 🤩

[@erichalfbee503]

Time to leave before I retire. Aus, NZ, Canada and, of course, Jersey, have no inheritance tax. Even the French would pay less than me! My pension sits at £500k - something I have saved for all my working life. If I die from 2027, £200k goes to treasury for Labour to waste.

[@andygreenfield6320]

Spot on . What happened to supporting working people…how do they think people got pensions ? Not by arriving in rubber boats or living on the dole . Disgusting…hard work so not be punished

[@NicolaSlater-u8n]

I totally disagree. We us parents put into pensions not just to see us through in our life span but also our children have a better start in life. Otherwise what is the point?

[@muhammadathar2358]

very soft voice, at 5.37 water splash effected the video, Starmer proved himself a butcher for Pensioners, thanks