I think that was from a while ago, which shows why the cap is not all bad
Why should it be discouraged? Interest rates on most investments is crap.
There are other ways the Government could have capped public sector state contributions without dragging everyone down. It is just silly that we are in a situation where we desperately need the old to be self funding yet have tax regimes in place to curtail that.
It could be, either way, neither is unusual these days particularly if somebody is older then the proportion of salary needed to be saved for a defined benefit pension would be much higher.Particularly as those people may well live longer.
Too many companies had large holes in their defined benefit schemes so the rules changed so they needed to pump more money into it.I know my own large private sector pumped in a lot over a number of years to get it to fully funded.
If you are knocking around £40k a year mark then you are hardly going to be a burden on the young. There will be many reading this who work full time who would love to earn that.
The consultants might be earning significantly more but this the contribution to the pension pot which isn't just a cash amount either from the employee and employer.
You could be a teacher on final salary and fall foul of this if you had a pay rise as a result of promotion\threshold etc.
I think anyone having £40k paid into their pension scheme per annum will be quite able to be self funding in later years as they will be earning at least double that
But it might not be that they or their employer has actually paid £40k pension in a given year.Over simplistic but the number for an increase in DB pension is multiplied by a factor of 20 so a £2k pay rise would equate to the equivalent of £40k and using up the amount.That could happen for a promotion between bands in the lower end of public sector pay.
Get part of it in crypto data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7
In an ideal world, i’d never stop you (If i was chancellor).
Our housing market is so messed up though, i’d encourage, what some would see as draconian/nanny state policies to fix it.Just imo.
It’s beyond saving though so no worries data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7