Millions To Be Affected By UK Government Pensions Raid
Analysts find that more than half of high-rate taxpayers would find their savings significantly reduced after UK Government implements pension plans. Middle-class workers with workplace pensions will suffer the most in particular.
UK Chancellor George Osborne intends the flat-rate tax to reduce the high rebates of higher-rate taxpayers for their pension contributions. The flat-rate of taxes can reach the low number of 20 per cent.
Conservative MPs rebelled against Osborne’s plans. They said he can face a “riot” in his hands if he continues with the plans. Tory voters may also lose confidence in the UK government.
Analysts from pension consultancies Hymans Robertson said:
“George Osborne would be short sighted if he pushed ahead with this. It would penalise savers, the very people the Conservatives are supposed to represent.
“Higher rate taxpayers will not save as much in their pensions because it is not as efficient for them. They will get to retirement and not have enough to live on. These people [higher rate taxpayers] are already paying a high proportion of their income in tax – let’s not penalise them further.”
Former Minister Sir Alan Duncan said of the new rates:
“What is really important for the future is that we have stability, no retrospective adjustments and a system that encourages people to put a lot of money away for the future.
“You can’t plan for a pension if you are halfway through doing it and someone pulls the rug from beneath you.”