Budget 2016

[watchesandwhisky]

What do you make of it? is it good or bad for you? 

both me and my partner are well in the age bracket to take advantage of the "Lifetime ISA" with the added 20% upto £4000 in savings each per year until aged 50, So will be doing that to save for a deposit for a house that we plan to try and get a mortgage within the next 5 years.. Be mad not too, But I'm not sure Id trust is as a way of saving for a pension..Seems like the start of the end of state pension and eventually will roll out into a compulsory Pension ISA.

Most other things were noise for me compared to this major thing really..

Thoughts?

[HelpingHands]

The whole accountancy is choreographed so that Osborne can keep his promise of a surplus in 2019/20.

He is prepared to make cuts and delay income until that year not for the good of the country but just to try to save face.  

It would be like me telling my employer to withhold my wages for three years and pay me all in one go just so I can say ''look at me.  I just got paid loads this year coz I'm ace''.

 

[Pipers]

The life time ISA is a good investment with one big problem.  If person A has been working for 20 years putting money into his/her lifetime ISA then finds themselves unemployed, A's hard earned pension pot will disappear with penalties first, then A will have to use the Pension pot to see himself/herself through the unemployment stage. A will then ask why did I pay NI when the person down the road did not save for later life got unemployment benefits when they had time out of work. For this lifetime ISA to work it must have the option to ring fence the fund as a pension not be withdrawn by the investor or taken into account by the DWP for short term medium term unemployment.     

[SilverPirate]

I think this new pension ISA is good as part of one's portfolio. It should not be the be all and end all ,cover all pension pot, but any free money in the guise of interest must be taken.

I also think it's a forerunner of a new private pension scheme. 

 

[Scuzzle]

Personally I'm wary about any long term government investment vehicle especially if it spans decades as they have a habit of changing the goalposts over time.  

[BaldyBob]

Corporation Tax going down to 17% by 2020 is pretty good, although easily reversible by future Govts or even the EU if we are to stupid enough to vote to remain. Helps the little business, and a big draw for Internationals locating to / investing in Britain.

The rest....undecided as yet. All the major changes (Pensions) have been withheld till after the Referendum so as to not to scare anyone to the Leave camp.

[Dune69]

He usually only announces the goodies and all the underhand stuff is hidden for people to find out later

[Paul]

5 hours ago, Pipers said:

The life time ISA is a good investment with one big problem.  If person A has been working for 20 years putting money into his/her lifetime ISA then finds themselves unemployed, A's hard earned pension pot will disappear with penalties first, then A will have to use the Pension pot to see himself/herself through the unemployment stage. A will then ask why did I pay NI when the person down the road did not save for later life got unemployment benefits when they had time out of work. For this lifetime ISA to work it must have the option to ring fence the fund as a pension not be withdrawn by the investor or taken into account by the DWP for short term medium term unemployment.     

I would sooner trust a instant access, 0% interest peak freans biscuit tin than these greasy politician and city of london spivs to roulette away and speculate with while it is out of our hands

 

SAVE SAVE SAVE now - for it to be taken away tomorrow or means tested or interest lowered or CGT reduced or lifetime ISA pots bailed in.

These politicians are only there to keep society/everything in a state of equilibrium where the great unwashed are sufficiently rewarded ££ so they dont rebel / strike or descend on parliament with burning pitchforks baying for blood but are sufficiently robbed by taxes/VAT/charges/council tax/fuel/mortgage/food/debt/loans/credit cards that they can never step off the hamster wheel of work for their entire adult life and never even notice it is happening to them

[watchesandwhisky]

Thats so true paul, and so many live that way . But it is a choice really. well certainly the part about driving cars that they still owe money for. 

Just to reiterate, we are only planning on using this ISA for 5/6 years until we have enough saved for a deposit for a house. (Will double check this is acceptable for the bonus an that you don't have to buy outright)

I have to agree no way would I trust this for the next 28 years until I should be able to take the pension cash, no damn way lol..I'm not building up some nice juicy pot for some politician to Raid..I would rather not have the bonus and have full control of my savings and provisions for retirement.

Those who save will get no state help, those that don't probably will.

 

[Pipers]

The budget has turned out to be a poor one, with Ian Duncan-Smith leaving the Work and Pensions dept over more cuts to what he says are the most vulnerable at the expense of tax cuts for the wealthy.  Be in no doubt a lot of conservatives are very angry at the Chancellors treatment of the very disabled.  We are not talking about the lazy loathers down the road here but the most vulnerable in society.  

As for the Life time ISA it turns out its an accountancy trick where he the Chancellor gets the revenue up front now rather than in 20-30 years time, future Chancellors will not thank him.       

[KDave]

Agreed, the Lifetime ISA is not a good deal while the help to buy ISA is still available. 

The help to buy ISA is just a regular saver with 4% interest rate, then if you fancy buying a house you get 25% bonus on top of your deposits towards that house. If you dont want a house you can just take the money out with your 4% interest - any time you want. No charge, just lose your bonus money which you never had anyway. 

Lifetime ISA, you get the 25% bonus money paid in each year so can generate the miracle of compound interest (sounds great), but if you don't buy a house, you will find that you cant take the money out or they charge you 5% of your capital AND take all the interest and bonus money back off you. You don't want to pay that? Well you need to wait until you are 60 years old to cash it. By the way, if you lose your job then money in the account will be counted towards your assets - no benefits for you sir, also we are sorry about the 5% tax on your capital and the loss of your interest and x amount of years worth of 25% bonus, but its that or stave lol. 

A great idea for the future from the chancellors point of view, if you want to reduce the welfare bill and begin means testing the state pension - oh you have a lifetime ISA? You don't need the state pension then do you?! 

Sorry for the rant. Call me a cynic, correct me if I am wrong, but that is what I am seeing from where I am sitting.