A minimum pension fund of £650k is required by most over 50's, to maintain a comfortable retirement.
Recently the Kings Fund launched a report suggesting the withdrawal of National Insurance exemption for over 65’s who work. The same week, Towry a wealth manager, published the results of a survey, that suggests a minimum pension fund of £650k is required by most over 50’s, to maintain a comfortable retirement.
Tax as I mentioned in an earlier post is inevitable but are the following sensible?
Direct Taxes – Income Tax, National Insurance, Capital Gains Tax, Inheritance Tax, Petrol Revenue Tax……..
Indirect Taxes – VAT, Customs duties, Stamp Duty, Insurance Premium Tax, Air Passenger Duty
Obviously an enormous army of civil servants are involved in administering these taxes, as are many computer systems.
There are many anomalies, such as working over 65’s, who are exempt from National Insurance as are young wealthy non workers!
Without doubt a Flat Tax with a high entry point would make far more sense. As would the withdrawal of many allowances and exemptions. Would the senior citizens mind? I do not think so, if it is done fairly, wealthy pensioners do not need bus passes, subsidised TV licenses and winter fuel supplements, but they do need a high threshold for entry into the tax system.
There seems equally, no clear reason to have Local taxes as well, government could just as easily collect these within the “Flat Tax” and allocate on a per head basis to fund local services. This approach might have eliminated the Poll Tax riots!
I know politicians would hate to be clearly in the spotlight as regards taxation, however, all could benefit from a totally transparent and far less costly system.