As the worst living crisis in decades strikes, billions of pounds taken from savings boilers will be taxed at rates of up to 55 percent. Analysts say this is due to the fact that someone can save tax-free pension will now remain at 1,073,100 pounds by 2026. The Treasury Department’s own estimates show that the freeze will add 90 990 million to its tax amount.
But new figures from Canada Life now predict that lifetime benefits will triple from միլիոն 500m in the last tax year to around արդ 1.5bn in 2025-26.
This means that about six billion pounds will be lost over the next five years.
More and more savers are expected to cross the line because of the increase in the value of their retirement investments, but Rishi Sunak’s secret tax will increase the pain of savers.
Without the freeze, the lifetime benefit would rise in line with inflation, exceeding 4 1.4 million by 2025.
Andrew Tully from Canada Life says the treasury is deliberately hitting savers who were trying to do the right thing – save for retirement.
And he warned that the impact of the benefit freeze during the cost-of-living crisis was far greater than during the normal inflation period.
“In times of high inflation, when benefits are to increase significantly, this is a very harmful stealth tax,” he explained. “The limit is a cruel measure that just hits people who save relatively little money but enjoy great investment results.”
“I know 1 1 million seems like a huge pension fund, but it will provide an annual income of around ,000 40,000, which is unlikely to be a ransom for the king.”
Any savings above the limit are taxed at 55 if accepted as a lump sum. Cash withdrawals are taxed at 25% if they are recognized as income, but the saver is also liable for income tax.
And it is assumed that life expectancy will cause great damage to the finances of Central England.
According to Aegon pension company, the saver who withdraws his money in a lump sum will lose 180,125 pounds more tax by 2025.
This figure is the tax that is paid on the difference between the frozen lifetime benefit և 1.4 million if it is not frozen.
Stegon Cameron from Egon said it was “alarming” that the frozen limit would cost savers more than ,000 180,000, just as retirees needed every penny to fund a more expensive pension and possible care costs.
“This tax of stealth, which could have gone largely unnoticed during low inflation, will now affect many more people, boost the chancellor’s coffers, exceeding his strictest expectations,” he added.
Covert raid on pensions to cost British workers deprived of cash 6 6 billion | Great Britain |: news
Source Covert raid on pensions to cost British workers deprived of cash 6 6 billion | Great Britain |: news