Summary
SAVERS will this weekend be reaching for the gin bottle as they attempt to work out how much they will be left with in retirement, after the government announced a raft of tax changes and upratings, which could leave many worse off.
Linking pension increases for former nurses, teachers and other public sector workers to the Consumer Prices Index (CPI) figure for September, means their pension will go up next year by 3.1 per cent rather than the 4.6 per cent they might have expected had Chancellor George Osborne not changed the rules and broken the link with the Retail Prices Index (RPI).See the full content of this document
Extract
Tough Lessons On New Pension Rules
Inflation, as measured by RPI, tends to rise faster because it includes housing costs, whereas CPI focuses on a narrower basket of items.
Some staff in a final salary pension scheme could also face a new tax bill, following an overhaul in the way our pensions are taxed.But it is not all bad news. The new GBP50,000 annu...See the full content of this document
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