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@kitty80 Yeah that’s why I mentioned it. It means every single dime of the pension fund other than the tax free lump sum gets taxed at the max.

@kitty80 Rental income and dividend income is personal.

@resjudicata Yeah but this person doesn’t need to take any salary… having 3 highest consecutive years at 133 costs this person about 150k in income tax. The 200 tax free lump some is not worth that.

@resjudicata Thanks for the info. Increasing final salary for the individual (who has very limited salary needs due to the passive income) will incur a lot of additional income tax. So e.g. going from 30k pa salary to say 300k pa final salary will cost 500k in income tax over the three years, so...

A person who already has over 75k per annum in passive income, relatively inflation proofed and indefinite (mix of dividends and rent). Running a business that creates surplus cash. If they invest the surplus business cash in a pension, basically the upside is; - premiums can avoid 12.5%...

@mbsantos If you’ve no plans for the cash you are better off leaving it “working for you” in the property.

@aldrichenko No I mean 30 years past retirement…!

@jenniwrenn One big problem is we have people living 30+ years and their healthcare and pension costs are huge and getting bigger. Someone has to pick up the tab.

@jimkarri I hear you and agree. So the solution is more efficient government not tax redistribution.

@jenniwrenn The bottom line with any tax change is - who do you want to pay less - who do you want to pay more, to cover it