Low earners who save privately into a pension could have their benefits effectively taxed by up to 6...
Low earners who save privately into a pension could have their benefits effectively taxed by up to 60%, under the Government's proposed pension tax credit, writes Kira Nickerson. As of April 2003 the Government will offer to top up the minimum income guarantee (MIG) from £77 to £100 a week. To incentivise people to save and not rely solely on the State, the Government is introducing a pension credit. For example, in the case of an individual who saves up enough in a pension fund to provide £10 of income a week, the Government would supply them with £77 straight off, and only has to provide...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes