Welsh pensioners will be hit in the pocket by a freeze on tax allowances announced in today’s 2012 Budget.
Responding to announcement that the UK Government will be freezing the age-related tax allowance, our Head of Policy and Public Affairs Graeme Francis says:
“Older taxpayers will be disappointed that the UK Government has decided to scrap the age-related tax allowance which will affect those with modest pensions and savings for their retirement.
“While freezing the tax allowance for pensioners will save the UK Government £1.2bn by 2016/17, it is another added pressure on the incomes of cash-strapped pensioners.
“Someone with an income as low as £10,500 who reaches 65 from April 2013 could be £259 a year worse than under the current system with very little time to adjust their financial retirement plans.”
Responding to the announcement of a flat-rate pension, Graeme Francis says:
“We agree with the Chancellor that the current pension system is bafflingly complex and so we welcome his announcement that the UK Government is to bring in a flat rate pension and look forward to reading more detailed proposals, later in the spring.
“Age Cymru believes that a flat rate pension would enable future pensioners to feel clearer about their retirement income and plan accordingly, but it is important that the UK Government does not lose sight of the needs of current pensioners.
Responding to the announcement of an automatic review in State Pension Age, Graeme Francis comments:
“Age Cymru recognise that as life expectancy increases it is reasonable to consider increases to State Pension age and longer working lives.
"However average life expectancy must not be the only factor that is considered as at the moment the huge disparities in healthy life expectancy across the country means that the poorest socio-economic groups will be required to sacrifice proportionately more of their retirement.”
Responding to the announcement that Gift Aid will be scrapped on donations over £50,000, Graeme Francis comments:
“Age Cymru is disappointed that the Chancellor has decided to remove this concession to charities.
“We fear it will put us at a disadvantage and could potentially limit the amount that wealthier donors will end up giving to third sector organisations.”