Pensions - Articles - Pensioners proposed tax to provide for next generation


The recent report by the Resolution Foundation Intergenerational Commission has suggested pensioners be taxed more in order to fund a £10,000 lump sum for every 25 year old. Stuart Price, Partner and Actuary at Quantum Advisory, thinks, while controversial, the report’s recommendations are worth exploring further.

 Stuart says: “While I can see the sense of increasing taxes for pensioners to even out the intergenerational divide, I would prefer for any additional taxes to go towards pension provision rather than a £10,000 lump sum. 

 “The extra revenues could be used to increase the tax relief on pension contributions for the younger generation and less well-off individuals so that they have a bigger incentive to save for their retirement with the goal of providing a better income in retirement.

 “The report also suggested those over state pension age should pay National Insurance, which is an interesting idea too. If it came to fruition, I would like some of these proceeds going towards funding the State Pension for the younger generation as well as paying for social care for the elderly. This could, for example, help reduce the likelihood of the State Pension Age increasing even further for the younger generation.”

 The report also calls for council tax to be replaced by a property tax to target wealthier homeowners, and for inheritance tax to be scrapped and replaced with a lifetime limit.
  

Back to Index


Similar News to this Story

FTSE 100 pension schemes back in surplus but dangers loom
Despite companies disclosing an overall accounting funding level of 101%, latest Accounting for Pensions (AfP) analysis from LCP flags looming changes
Five reasons to transfer out of pensions and five not to
With more than 100,000 people having transferred out of DB pensions in 2017/18, Royal London has produced a new edition of its highly regarded guide t
Upper Tribunal rules in favour of TPR in ITV case
The Upper Tribunal has confirmed that The Pensions Regulator (TPR) was right to use its powers to seek financial support from ITV for members of the B

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.