[gehsty]

In the UK the benefits of paying into a pension are tax based, you don't pay tax on what you put in, and you then take it out at a lower tax threshold on retirement (compared to what you would pay to have it in your pay packet).

If you are a higher rate tax payer this is a huge benefit - you can take up £40k before it becomes taxable, tax for high earners can be 40% - but it doesn't really help people on lower incomes who are at most risk of not having any savings.

[anonymousDan]

Aren't you at risk though of the government shifting the goalposts (e.g. wrt retirement age)?

[danielmg]

Not really. They are moving the state pension age out but the private pension age stays static at 55. They have also given more freedom on how to use the private pension funds come retirement.

THe idea is to reduce the burden of the state pension. It would be counter productive to do anything counter to that.

However - the left keep wanting to take away higher tax relief on pensions. Which sounds great unless you are a nuclear family where 2 people will rely on one person's pension (like my wife will - we also have other compounding circumstances). If they cut this relief I'll leave the country or go self-employed and play the system, as it will push my marginal tax rate to a stupid rate.

[zelos]

That's no tax on private pension contributions, which have an up-front agreed pay out date.

There is a state pension as well, and the retirement age is gradually being increased, but as I understand it that's always for people currently below a certain age - i.e. you won't get to 66 and then suddenly have your retirement age increased to 67.

[darkFunction]

Unfortunately yes. I save mostly into a pension but also into ISA's (not taxed on gains), so that if the government moves the goalposts I can still retire at my target date and live from this until I can access my pension.

[lmm]

Yes, but the old are a key voting demographic, so governments tend to be very cautious about anything that might be seen as anti-pension.