The end of tax free savings.
HTML-код
- Опубликовано: 18 сен 2024
- Mainstream media is reporting that the Chancellor of the UK is considering scrapping the major benefits of ISA's and limiting people to 100k total allowance. Today I want to look at the report these headlines come from so we can get to the bottom of what is going on.
Full report here: www.resolution...
💵 The investment platforms I use:
InvestEngine
investengine.p...
Get a £25 bonus when you invest at least £100
Trading 212:
Join Trading 212 Invest with my link, and we will both get a free share worth upto £100 if you make a deposit of at least £1 in the first 10 days.
www.trading212....
input promo Code: Gbassinv if the link doesn't work
Vanguard:
www.vanguardin...
This is not an affiliate link
I hold funds with all these brokers and believe they offer both affordable investing and great value for money, I only include brokers in my description that provide ISA’s and are authorised and regulated by the FCA so are covered by the FSCS.
Some of the above links are affiliate schemes so that means you get something for signing up and so do i. In all examples I have stated if they are an Affiliate or not.
Disagree that having over 100k in a cash isa, as opposed to a stocks and shares isa, means your automatically better off. Some people are risk adverse and dont feel comfortable investing, this will apply to a lot of retiring public sector workers with lump sums. They should probably invest but a lot of people have most of their funds in cash (certainly in my parents circles of mid-to-senior retiring public sector workers).
I think this is a very good point that a few have made so I will pin this comment. I have spoken from my own experience and personal risk appetite and not considered others so I will improve on that in future content. Thank you for raising this constructively
In an attempt to find some redeeming qualities to the report I have probably made it sound like I think they should reform cash ISAs but to be clear I think they should leave them all as is. The only changes I would stomach are a reduction in the total amount you can pay in annually, I do currently max my isa allowance each year so I would be negatively impacted by this but I can see how this sort of change would lean toward an impact on higher earners.
Even a lifetime cap on pension will doom people to poverty. £1.07mm that one can draw down for the rest of their life won't lead to a high quality life. Holding the cap where it is, when inflation is rampant will only make it worse. This is the government trying to rob our future to pay for today. An unfunded state pension system is the route to our problems and will only get worse with changing demographics.
Get some professional advice ,blowing the cash is not a good investment!
Cash savings lack risk in the short term but they're more risk over the long term losing money against inflation.
It’s not just risk adverse. When I stop work, (currently) I plan to have 100% equities in my pension but to stop being ruined by an early market downturn, 3 years in cash to begin.
Also large purchases like cars and deposits fit better in cash than stock market.
Maybe not the most common use, I’ve been using flexible cash ISAs to rollover my allowance each year using savings in offset mortgage. Rather not have large part of house value on stock market just to retain an ISA.
As a higher earning peasant I am getting sick of the punishments and pressure being ramped up on people in the UK who have worked hard their whole lives through school and work just because they aren't yet destitute.
Because the rich friends of politicians don’t want to pay any tax so you my friend have to make up the short fall the rich don’t pay. IR rather case the local window cleaner than the likes of Phillip Green and their army of tax avoiders ( sorry should say advisers)
Very worrying. I started investing in a stocks and shares ISA a year and it currently sits at around £30k. All of that is money that I've earned through a less than average wage and have already paid tax on it. I don't own property, so will have to rent for the rest of my life, so I thought that paying into a S&S ISA would help to support me in retirement and live with a modicum of comfort.
I only have around 15 years to retirement age so I'm never going to be wealthy by any stretch. So it does seem unfair that they'd try and reduce the benefits of investment ISAs just because some will have built up a seemingly large amount. This is money that one hopes will last until the end of their life, so nowhere near as impressive as the 'headline' figure suggests.
Maybe we need to get rid of fiat money and store savings on gold.
ISA hard knock life.
Very good Chris.
@@DamienTalksMoney check whether that think tank gets dodgy money from the WEF, follow the money on think tanks, they actually exist to protect the rich from competition
I think you have won here! Congrats i will drop a community post now but do you have instagram that you could dm me on?
This analysis is spot on, 100k in an isa you are not rich, far from it. This is once again dividing the middle class so the actual rich (billionaires) can enjoy some peace by not attracting attention.
Unless the lynch mob go after them ...
We are all (if you are asleep) programmed to be poor from birth. Saving £100.00 a year is pitched to appear to be a lot of cash, whilst spending billions on HS2 is an incomprehensible figure and flies under the radar of most folk.
It’s about time the people stood up to the amount of infringement on our lives were tolerating from these clowns! So sick of this country! 😒
fully agree, its took me years to get my pot and a young wannabe isnt having it.
What concerns me is how can i realistically save for my future when i feel the goal posts can just be moved at anytime.. People talk about rug pulls in crypto i would say this sort of stuff really is not far off!
@@DamienTalksMoney Yes unfortunately the rules keep changing to target people closer to the bottom. One option is to include some assets that can't easily be taxed in your portfolio. Like physical gold or bitcoin.
They came after BTL Landlords first then a cap on SIPP ISA is the next target
Tory economics finally catching up with everyone.
There was a time I was holding 125K in cash but I was actively looking to buy a house and wasn't prepared to risk volatility.
This is absolutely shocking.... frankly it looks like there's not gonna be any point in even trying to save money
It sometimes feels that way doesn't it!
That is what they want though, the masses to go out to work like obedient citizens and spend all their wages on rent (to the elite), energy (to the elite), food (to the elite) and other consumer goods (to the elite). It is the end game for the capitalist machine, hence why the elite are at Davos discussing extreme measures to control citizens and keep them just working and spending within their small bubbles...
The government want you to spend and spend they don't worry about your future
Buy physical gold, that's your savings - inflation proofed too.
I listened to a discussion about the future housing by the WEF and its way worse than i thought. They want to build a massive structure, no land, just basically a prison, no cars just walk places and some how live. I'd bet that isn't how they live with their gas gusseling private jets at the same time
In my (admittedly limited) experience there are plenty of people that won't ever consider an S&S ISA. For example, my parents will only use a cash ISA, they won't even consider government bonds. The problem is they don't understand stocks and bonds, they essentially see it as gambling. I don't know if they would be hit by a 100k limit on cash ISA but I'm sure many people would be. Other than that I think you're assessment was very good.
Something I heard the other day that really resonated with me was people don't invest in pensions because they don't trust them not to change (for the worse). I completely understand that. When I started work I was told I could retire at 65, now its 67 and I'd guess it'll go up to 68. I've been saving like a good droid in an ISA and now I'll probably get screwed there too. It just feels like every time I get a glimpse of the finish line some sod moves it further back.
It would be pointless doing it if you can only put 100k into it. 100k by the time I'm an old man won't even last 6 months because of inflation.
yea might get a loaf of bread for that when ya reach retirement age
Yep! the other day i worked out even at 2,5% inflation 75k in 30 years will get you what 33k does today..
@@DamienTalksMoney "Cash is King" not with those calculations.
They never raise tax thresholds to match inflation. Higher Rate tax has been at £50k for around 10 years now.
@@DamienTalksMoney Maybe buying some prioerties might be a better idea 🤔
I’ve been aggressively paying into my stocks and shares isa for retirement! If I’m no longer able to do that then I’ll stop saving and the government can keep me in retirement! I’ve had enough of the thieving government!
After the sickening cutting capital gains limit to 3k, I have no doubt they will target ISA limits next.
Name ideas: A Nicer ISA, mISAr, Revolution FoundISAtion, ISAtonic, dISAppointing
Yeah i think ISA limits are next for sure!
And the annual pension savings limit too. With an MPAA of £2k if you go over £20k in a tax year.
I hadn’t realised they were cutting the CGT allowance? Looks like down to 3k for trusts and 6k for individuals in FY24? That is shocking.
Edit - Down to 3k for individuals in FY25. I’m all for honest taxation and sound money, but I’d rather the government spent more responsibly..
I actually like that, unearned income should be taxed more than earned income. There are "tax wrappers" for income (other than avoidance schemes).
I think you've hit the nail on the head by identifying that the middle class with a few bob saved (legally) are being held up as the enemy of the poorest. It's the age old "Look over there" politics. My entry to the competition: ISA Render!
How is "a few bob" comparable to one hundred thousand pounds? I'm not arguing that a £100k limit is a good idea or not or if its fair or not but its ridiculous to say that someone is having their 'few bob' taken away when they've put £100k into an account and the article is talking about having tax savings over £100k reduced or withdrawn. Those with "a few bob" wouldn't be affected at all.
@@Joe-lb8qn a few bob saved every month soon adds up to 100k, it's not that much any more. Hunt can do one.
@@ac0ncernedcitizen Actually, "a few bob" would need many thousands of months to get to £100k. Its the hyperbole I'm arguing against here. Lets say it was a million£. Would you be against such a restriction on saving into an account? In the meantime HMRC had a £1M limit on pensions, not the input but what they grow to, which penalises people who got smart (or lucky) yet no real limit (that affects the average person) on input. Very inconsistent.
@@Joe-lb8qn depends what a few bob means. Is it £5, £50, £100. It's probably a different amount for everyone. I'm against any arbitrary restriction which penalises people who just want to save for a rainy day.
Middle class always pick up the tab!
£btc fixes this. A fully decentralized, peer-to-peer network is unstoppable. Crypto is inevitable & shouldn't be controlled politically as the case of CBDCs. You work for 40yrs to have £1M in your retirement, meanwhile some people are putting just £10K in a meme coin from just few months ago and now they are multimillionaires.
Crypto currency shouldn't be used politically. Seems like away/excuse to control money. I thought Crypto currency was supposed to free from any political/ government control. Just an observation.
@Lloyd Bernard For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired a FINRA and SEC regulated expert advisor "JILL MARIE CARROLL' , last year for assistance, and following her advice, I poured £150k in passive diversified safe-haven assets and its yielded £725k so far. Nothing special, just proper diversification and a cut loss and take profit strategy. If you want to find out more about her, simply Search her up.
You can’t control how crypto is used. No one should. Get some bitcoin up 27% so far this year.....
Crypto can be wiped out in a few keystrokes and mouse clicks (see China) - CBDC is already planned to kill it. When we own nothing, we will have nothing to lose...
Or down 99.99999%
The government will NEVER take from the rich, it has always been that way. The pm with his 700 to 800 million personal wealth, his wife the billionaire! How do these people have anything in common with the working and lower classes? Its a totally different world for them but as for the rest of us we have to pay for it. Great video as always damo. Keep up the great work!
Bourgeois and proletariat, serfs and landowners. We are going back to the future
do you really want someone to be unemployed or from the lower classes to be PM ? think about it.
@philip covell definitely need a working class PM 100%
@@jackwaterman6727 perhaps, but it can never happen, the PM is paid around £180,000 plus expenses and pension payments, whoever gets the job is automatically wealthy, therefore not working class.
@philip covell Mick Lynch is on 84k but he is elected with a specific mandate to represent the working class and he is held accountable. If our politicians were actually accountable to us, they'd have to represent us. But our government is a dictatorship. We need to reassert democratic principles. Not pay the dictators more.
Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.
You need to hire a financial advisor to help you diversify your portfolio by including Mutual Funds, Etf's, the 11 GICS groups, inflation-indexed bonds, and stocks of companies with reliable cash flows rather than growth stocks, where prices were based on future prospective earnings.
Hahahhaha Jesus…
I pushed another video back to rush this out as so many people got in touch asking for my thoughts last night. So I am sorry it's not to the usual standard of production. I will drop the all singing all dancing video next Monday!
Is there going to be singing and dancing?
How abt ISA Boris Baby 😂
I quite liked the punchy sarcastic humorous style
People are naturally wary of stocks n shares ISAs as with anything to with stock market is to invite being ripped off and left with an empty wallet
@@wicky525 I will keep them coming!
Agreed 100% Hunt needs to target the billionaire class and the charity/foundations which they use to shelter themselves from tax.
He’s part of the clique so no chance.
@@dolphin069 agreed however he's more of a supplicant as opposed to being a clique member. Provided the people continue to not pressure those in ministerial posts the more ministers such as Hunt will target the general populace.
Rather than be hateful of billionaires, we should take a breath. Let’s assume it’s non-dom billionaires living in the Uk that we really worry about. First off, they own homes in the Uk and will have paid lots of tax to acquire them… even if they use offshore companies (there’s lots of anti-avoidance legislation already in place for this). Secondly, they employee people: staff, housekeepers, drivers, gardeners etc and they will pay tax too and have jobs and pensions. The non-doms probably send their children to expensive schools, so help employ teachers and support staff there. They likely eat and shop at fancy places so indirectly support more people. And they pay income tax on their UK income plus any income they bring into the Uk from overseas at exactly the same rates as those, like me, who are born here. The key difference is that for the first 15 years they don’t pay income on overseas income and gains *if it stays overseas*. But loads of other countries do just the same as the Uk. If we taxed a non-dom billionaire on his/her worldwide income (even if it was not “remitted” to the Uk) they’d simply not come and instead move to Monaco, for example, where the tax is even lower and it’s an hour by private jet to see the little kids at half-term. What do we want: some tax revenue or no tax revenue? If they left the Uk and didn’t pay any tax then the burden falls even more on everyone else. What HMRC has to crack down on is evasion and not simply create tax policy based on envy of wealth. And if you don’t believe me and are not familiar with it, search online for the anecdote of 10 people drinking in a pub to explain how tax really works. www.moore.co.uk/msuk/moore-south/news/april-2016/the-tax-system-explained-using-a-beer-analogy
that will never happen cause they the ones running all the politics and the bastds in the parliament
"Target"? That's an interesting choice of word. Theft is immoral, even when the victim is a billionaire rather than a moderately-wealthy ISA holder, but leaving that aside for a minute, and leaving aside that there aren't enough billionaires on the planet to form a class, what do you think "targeting the billionaire class" would achieve? Bugger all. You might collect some extra tax in the first year and then you would never see any billionaires in the country again. Even if we forget about the direct loss of business from the billionaires, and the loss of investment and jobs, that would also signal to anybody with a certain degree of wealth that the UK is not a good place to invest your money. Continue in that direction after the billionaires are gone and you end up like Venezuela.
If this ever comes into effect I will be exiting this country with a smile on my face
Exactly my thoughts honestly.
Where will you go? I’m interested to know which countries actually support middle classes.
@@xoxrazzyxoxanywhere is better than the UK at this rate. We tax more than most European countries. It’s a fckn joke
@@xoxrazzyxox tbh I don't know. But I will begin to seriously consider options because this proposal is no joke and I am planning on maxing on my ISA yearly. I've been in the UK for about half my life and it's been great but I have my limits
time for a departure tax and return to limiting how much you can take out of the UK.
This is appalling ! I'm approaching retirement age and have saved hard to get me through our retirement years. This is what our previous Governments and financial advisors encouraged us to do ! So now we have to pay more tax on the tax we've already paid while these greedy Government MPs ( not all ) come out with these ridiculous taxes. So many millionaire MPs aren't paying any tax . This is not good enough !
I wouldn't let it bother you John, I think of it as another communist think tank.
Thanks so much for informing me of Help To Save. I'm eligible through working tax credits and have just opened an account and made my first deposit. It means £50 a month less going into my stocks/shares ISA. I guess my portfolio is now effectively both stocks and bonds!
Thanks again fella, valuable info presented really well.
The idea that some people are poor because I am doing pretty well (after 25 years long hours and hard saving) is ridiculous. Help them save by all means, but punishing me isn't going to do much for them.
schools simply need to teach kids about compound interest, savings and investing.
Why, where will they go to get interest when they drop interest rates to zero and print more cash; after they crash the market
Even teachers don’t understand how to do those properly. 😂😂
Government doesn't like promoting Capitalism. They leave that to the Socialist parents...
I recently returned to uk after 13 years in NL, the tax efficient savings / investment rules in uk were a big draw and help incentivize good financial planning. Seems predictable that the tories would wreck it eventually …., great video Mate!! 🙏
These aren't Conservatives, they're Socialists in blue ties.
Thanks Damien! I've just opened a stocks and shares ISA and this is quite worrying! Hopefully as you say, it won't happen. Keep up the great content :)
@Calmlocket He didn’t say anything about losses affecting savings?
Financially literate people who think about their retirement and prepare for it in the course of their active life will be persecuted because of people who cannot or do not want to save..
Great video as always Damien :)
Yeah constantly taking from the middle to give to the poorer families is not a long term solution at all is it, you knee cap the engine of the country and provide no long term solution for those who are struggling.
@@DamienTalksMoney And the reason they need to do that is because the poor are being absolutely fleeced by the super rich via poverty wages and astronomical everyday costs. But rather than penalise the super rich, they would just prefer to impoverish the productive lower and middle classes in the name of altruism. Its a sick joke!
That's marxism for you. And you thought we had a tory government
@@tobybarker6808like Damien says, it’s not Tory policy, but a think tank. One things for sure, Labour will be the next government, and they’ll do it
@@agmagee the richest will always have options to keep the government from stealing their money. You have to ask the question why your wages aren’t giving you what you need, and what you can do about it, rather than taking someone else’s money.
Im 35, and I have a S&s Lifetime isa and a standard S&S isa. If I pay £4000 into my LISA and get my 25% tax back from the government, I will be well over the £100k at 50 when I stop paying in, never mind 60 which is the first time I can have it, and that's based on 7% returns, noy 9%. My plan was to use the other isa to invest for 5 years then use as a deposit to buy a property then rinse and repeat. This can F#£K right off! Im not rich, I have a 3 bed house, not a mansion. I make big sacrafices by not having a loan on a flash car or anything dumb like that. If they are going to do this, Ill go spend all my money skiing in the alps and mountain biking in the summer instead.
That's the government plan, they don't want you to save. Savers don't grow the economy but spenders do.
Stick to the plan, invest & save.
Excellent video Damien. I think the idea of a limit on isas is bizarre, what would happen in the recent boom and bust, you'd have 90k in 2019, exceed the 100k limit in 2021, only for it to fall right back down again in 2022.
I think holding the 20k a limit(so having inflation erode it) or maybe at the most extreme even lowering it a bit is fair, when I started saving in 07 I think it was only about 3k, then it went to 4.5k, and suddenly jumped right up to around 15k a couple of years later.
Yeah I guess they can vary the contribution limit depending on how much they want us to save versus spend. In a time of inflation, I think they should encourage saving.
its 100k of contributions, nothing to do with value.
This is seriously depressing. This ‘you will own nothing and be happy’ conspiracy is proving to be true 😢
Only problem is nobody is happy
So what do you call a conspiracy that turns out to be true?
It's all part of the "Great Reset," don't you know?!
@@hookooekoo2 A correct prediction
Depressing and insane. all these high tax goes where with NHS broken down, all the strikes and still makes people lose their motivation
Seriously good analysis and sensible points made here. This is the kind of channel I can get behind.
Thank you! Really appreciate this comment.
Having worked hard for 40 years and saved some money DOESN'T make you rich, it makes you sensible with strong impulse control.
Maybe I’m stupid but won’t this just inflate house prices? Since everyone will just invest in real estate (buy to let?) rather than take a crappy ISA system
That was literally my first thought. I have plenty to dump and deciding whether to just go into property rather than mess about with ISAs and Pensions which are changing all the time.
Are these the same lunatics that want to tax pensions when you snuff it eventually and pass it on to your kids .
Well no bc they’ve already taxed BTL heavily so there’s no advantage there
I thought the exact same thing
The Scottish gov have put tax on buying a 2nd home to 6%, freezed rent increases, plus done away with min and max tenancy agreements. This of course won't impact the multimillionaire investor but normal people wanting a second income stream. Wouldn't be surprised if other country's in UK do the same especially Wales.
I have fibromyalgia, I'm self employed, an Accountant/bookkeeper, from a working class family and everytime I work for any period of time more than 5 to 10 minutes, my body becomes riddled with pain and trigger points from head to toe. The ISA which I've been putting as much of my difficultly earned wages as I can into, could then be capped at £100,000. I think that would be a joke and would make me lose all faith in this Government. It's my way of achieving some kind of decent future for myself. I was extremely down when I saw this article. Cheers for the video Damian and bringing it to light for people.
The fact that the same report talks about issues surrounding UK's lack of savings and yet proposes ISA ceiling of mere £100k (a tool that may just be the best for long term savings) is absolutely ludicrous! Well laid out video and good ideas D! If they go through with this - ISA going to hurt!
Recently came across your channel from a friend Damo, and I've watched every video you've uploaded since. Appreciate all the good quality advice and breaking things down to easily understand. Oh and... "If ISApeak, I am in big trouble"
ISA should be so lucky
This is quite good.
Walking on thin ISA 👍🏼
Great video as always Damien and as always avoid or ignore all news headlines and rumour, keep paying in each month.
Thank you for the sensible review of the data sitting below the Headline title 👍
You are very welcome Jonathan
I have a small stocks & shares ISA, which I started when tax free savings first came in, so not that long ago. In my retirement it pays me a small amount in dividends each year which supplements my pension. I worked my whole adult life, from becoming an apprentice on leaving scholl at age 16, so for 42 years. For every single contribution I made over the years to my, somewhat risky ISA, I HAVE ALREADY PAID TAX! The benefits are not as large as many may think. I am a hell of a long way from being rich! If "they" decide to tax my "Tax free" savings, I'm going to be very angry indeed. Thank you for a very good video. Subscribed.
The government would be walking on thin ISA if they listened to this report.
Struggling to see the logic behind it
As a Pensioner, like a lot of pensioners my age, I use a Cash ISA to keep what little savings I have relatively safe, despite the fact that the interest rates are low, which would explain why so many people have their savings in a cash ISA relative to Stocks and Shares.
Walking on thin ISA
Nothing like being tax on gross income and then taxed again on your saved net income...
@DamienTalksMoney22 USER AND EVERY COMMENT REPORTED
Top video mate. I'm incensed at how this Government is pulling a facade over everybody's eyes that they will reward the industrious and SMEs, yet the people who get smashed by most of the fiscal policies are middle earners who have scrimped and saved for years to try and avoid any need to dip in to assistance from the state...
Im from a working class background and the first of my family to go to university. I want to own property and have a good retirement. Im saving in my Isa to use it later as a deposit on a house. This makes me angry because what ever we try to do to be financially well is being held back.
Definitely think that these think tanks are trying to get a reaction. I agree with you that they will prob limit the input amount at some point. But think we are safe for now. Great vid my man!
Damien, I love your videos... it helps us all to be just that little bit wiser to what's going on!
The problem now is that the top 10% of taxpayers are already paying 53% of the tax burden. The UK has reached the point were it is literally taxing its economy to death and destroying its middle class. The mismanagement of the UK economy over the last two decades by both political parties has been truly shocking.
Top 10% pay very little tax in the grand scheme of things, most of the pot is made from the 60%-20% of earners.
The economy is driven from the bottom. If the bottom don’t work and spend then it all falls apart. Hence the trouble we are in now.
the same thing in the US. The middle classes are being destroyed.
@@m4son5ee - If you read my answer carefully you will see that I am referring to income tax payers not non-domiciled oligarchs who have chosen to offshore their wealth. The figures I quoted are from the ONS and are actually included in the latest Civitas report on tax and benefits. The point being made is that the top 10% of income taxpayers are now being absolutely hammered and that we have reached total saturation point for everyone as regards income tax. The planned freezing of personal tax allowances is about to make things a whole lot worse and will drag an awful lot of middle income earners into the top tax rate. The UK's out of control byzantine system of tax and benefits is destroying the economy.
@@markrl75 careful reading is not my forte 😂 lexdysia kicking in.
100% agree, the country is being robbed blind at the mo. It’s being squeezed for every penny and the public as a whole have nothing left. Privatisation of everything and trying to profiteer off the real basics is slowly turning us into the US. Revolution is needed I think 😂
Carly Rae Jepsen - "Here's my ISA, don't limit it maybe?"
"Be as cold as your ISA, and be willing to sacrifice your life savings" :D
or "ISAold you down the river" - the Jeremy Hunt directive
love your content
Love both of these!
Something that NEEDS to change before any govt finance schemes will be effective for lower income people, is to properly teach financial literacy in school.
I had a good education, got A* in maths at GCSE, but it was only through my own research later in life that I worked out what exactly I should be doing with my money and why.
Almost everyone my age is clueless about such things, and just put all their money in a bank account. There's a perception that investing is for rich people, when really almost everyone should be investing, and the earlier the better.
If this passes in March, I'll be changing course and saving gold and silver. It's a suboptimal approach but it's better than being subject to state sanctioned theft.
me too...
I'm in my mid 40s and only now I got myself out of of poverty and it's my second year I've managed to put some savings in my ISA. I did with great pains save £20k last year and £20k this year, I'll run out of my amount in 3 years. I have no other savings for my retirement. I'm renting flat. I'm doing well now, but I'm not rich! I'm so upset!
Make sure you are opted into the pension scheme with your work. Also, if this 100k limit goes ahead try to buy a property rather than rent.
@@en6866 A property isnt such a good investment now. Overpriced, colossal prices to repair or replace anything, rising taxs if you rent it and law is on the side of tenants that decide not too pay
@Er Devon yh I agree but because of the weakened pound to dollar, alot of american reits etc are buying our homes so I can't see them ever coming down much
Agree it seems all this lack of "Think Tank" would achieve is making sure everyone stays poor.
@@en6866 Second that, @Tomek S should ensure they're in the company pension scheme to get the mandatory company contributions. It's free money.
I think ISA's were always going to be an easy target unfortunately. Still, I'm sure the super rich will still be able to hide their wealth easily enough.
My husband and I are now in our 70''s and can no longer rely on 'long term' recoveries of stock markets in the event of another crash, because who knows how long we have left at our age. The income we now recieve from a 2 year fixed Cash ISA plus standard variable interest A/C now provides a useful income of hundreds per month instead of our money see sawing in dodgy markets that could collapse again at any time, perhaps even for years. It irritates me that you seem to suggest people holding money in Cash ISAs are somehow naive, when you are not taking into account that it might make more sense in later life.
As not particularly rich people with money that was inherited and a small private pension that is going to be chewed to pieces by Hunt's tax allowance freeze, the last thing we want is to be targeted for more tax. However, you failed to point out that the proposed ISA raid would be per individual, not family, so in reality the ISA allowance would be £200,000. But my great concern is if one of us dies, loses the other's state pension and then gets clobbered for the interest earned on a single personal £100,000 allowance. So it would be hugely unfair to target cash ISAs and suggesting it makes some sense is total nonsense.
Not so Vanilla ISA changes: how it's a wrap for the tax-free wrapper
or maybe just;
ISA caps growing
Very informative content as usual from Damien
I worked with a guy who didn't go into the works pension, he said government won't let me starve when I'm a pensioner and I will still get the state pension.
It was nISA knowing ya! 😂
🤣🤣🤣
“Tip of the ISAberg”
Cheers for the content: as always a great balance of fun and fact.
Seen this coming. I think they've realized there's a lot more of the younger generation playing in the Stock market. Something that was a lot more difficult to do 30 plus years ago. You only have to look at the money that was thrown at the stock market during the pandemic...
Secrets and LISAs?
Thank you for the excellent content as usual, Damien. You’re one of few people in the middle of the Venn Diagram of informative, easy to understand and hugely entertaining.
Love this comment thank you!
Sigh i do wonder at the brain power of some of these organizations. Great vid.
Honestly how can you call it a think tank..
This would be an attack on the middle class and prudent, by the rich, corrupt politicians of this land!
What would happen if we had already put over £100k in an ISA as many of us have? 🤔
Whoa! I am glad RUclips recommended this video to me, I didn't know about this.
Glad I can help!
@@DamienTalksMoney I didn't know about this either! And I thought I was pretty good at keeping my ear to the ground.. smashing the subscribe button as soon as I've finished writing this as who knows what I've already missed? So a trawl through your previous videos is in order along with a subscription; as I'd hate to miss anything else!
Financial education NEEDS to be IN OUR SCHOOLS, for ALL students (especially those who are disadvantaged).
It is frustrating to see how the government has been driving the country to the ground in the last two decades or so.
ISA not going to be able to retire.
ISA La Vista.... Baby... 😏
Great content as usual! Keep up the informative vids please :D
ISA ice cap, How to freeze UK savings and investment.
You really hit the nail on the head, everyone agrees the 'Rich should pay more'
trouble is, no-one can identify them.
The trouble is the rich won't identify themselves
@@patlong8449 wtf does that even mean?
@@melbeeswax6087 the rich make the laws, the rich make the tax rules, do you think they will ever stand up and point to themselves? They pay people to find ways to hide their wealth, they are not going to identify themselves, to come out and confirm their wealth.
@@patlong8449 When you say 'the rich make the laws' I assume you don't mean parliament?
If not, who do you mean? I assume that you are talking about some cloak and dagger clandestine organisation thar controls 'everything' from the cost of fuel to the weather to the length of your shoe laces to the number of bubbles in your lemonade to the appointment of the CEO of the WEF?
Do tell.
it feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very Darwinian, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?
@@Curbalnk
@@Curbalnk Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
@@anthonyrussell5718 The advisor that guides me is ''JILL MARIE CAROLL'', most likely the internet is where to find her basic info, just search her name. She's established.
Agree. Absolutely crazy and you have to assume that it’s all overseen by the government to pit one side of middle classes against the other, whilst no one asks questions about the actual rich.
I agree with most of this. However, having saved and sacrificed all of our lives my husband and I are nearing retirement. We have been through several stock market crashes over the years and whilst we do still have some S&S ISAs the predictability of Cash ISAs becomes more comforting as retirement looms even though we are aware of the fact they don't keep up with inflation. I wouldn't wish to see Cash ISAs singled out for this treatment. Incidentally, my husband has been self employed or there's been no employer's pension scheme for him and so his pension is also invested in the stock market making cash ISAs an option to spread our risk.
I've gone for dividend paying stocks in my ISAs. Hopefully won't need to sell in a down market.
ISA NONE THE WISER 👍🏼.
I watch the video but the forwarded suggestion for limiting my isa holding makes no logical sense .
This is what happens when financial education becomes widespread. Everybody wants to save and retire early (or not so early, but earlier than the ones in power want us to). You know, nobody wants to work anymore 🙃🙃
Or at least not spend our lives working boring or back breaking jobs so we can enjoy some retirement when we do.
@@bluevan12 The system was never designed to give us much back. It's all about us serving them. Whatever else they say is just smoke and mirrors. Earlier only a few people figured out they could work around what the majority of people did and we'd quietly make certain choices like never having children, pets, expensive shiny things like brand clothing and fancy cars, so we could save up quickly, see our money grow in a safe environment (bonds / high yield savings and even annuities) and stop working while still having a few decades of life left and enough health to enjoy it.
Nowadays there's too much information around it and, obviously, many more people want this lifestyle. When there's too much demand for anything, its price becomes higher and it is usually much harder to "acquire" that desired thing. Governments removed or lowered reserve requirements so banks don't need to pay us an appealing interest so they can lend that money out, like before. While that is good for society in general (I hate to admit it, but it's the truth) because you make resources available to people who want to take risks and work with that money, and also stimulates people to spend instead of saving, circulating the economy as a whole while benefiting people who are constantly working, paying taxes, consuming, rinse, repeat, it hurts the tumorous cells of society (us) who want to accumulate as much as possible to suck out from society without giving anything back for as long as possible.
Yes, I know, I sound very negative, but governments will always fight us because we are undesirable. They used to "reward" us with retirement when we're 70 years old because they expected many of us would be dead BEFORE that age or, if living a bit longer, not more than a few years. Now that people can easily pass the 85 year old mark and that we don't have tons of new young people being born from each of us, the ponzi scheme is failing and we became a problem, together with the ones who retired.
They will have to reformulate things somehow. Until technology is used to make human labor obsolete (and they actually use that technology because it has to be cheaper than paying for scared of starvation humans) we won't be able to break the cycle. Once we break that barrier, life should get better. It might happen now or later. I keep wondering why they don't prioritize it because it would benefit everybody. Maybe they need worker bees to be stressed out and busy all the time so they don't want the same lifestyle of the blue blood people?
Sorry for the long comment. I hope we can win somehow. Even if we have to give up on things. Freedom to sleep and do nothing if you're in pain is priceless. I live with Fibromyalgia and as it's an "invisible illness" it's not recognized as "enough of a reason" to not work. I'd just starve to death without good financial management because I'd get frequently fired if I had to do anything physical or that depended on being punctual everyday.
This is getting ridiculous, i swear you're the only one talking about this. I can't believe it's not ISA.👍
ISAve & They Take It Away
£1m Lifetime Pension Allowance is already a joke. £100k limit on ISAs is beyond belief.
It's tantamount to them coming and taking a couple of bedrooms and the garden furniture away from the home that you've slaved away paying the mortgage off for 25 years. But they want the masses in debt; they do not want financially literate and independent plebs.
Polar ISA caps
The whole idea of ISA’s which started as Personal Equity Plans is so wrong.
Having dealt with so many deceased pensioners estates where they have ISA’s worth over £250k and the highest at £800k - paying no income tax or CGT is bonkers on these sums. A large number of these estates pay no income tax whatsoever.
Those that go out to work pay IT & NI - why should they pay tax and those that sit watching daytime TV don’t.
I am a pensioner and would have no problem with ISA’s scrapped overnight. Including my own.
After a Budget that increased to ISA annual allowance to £15,000 a lady was asked what she thought. Her reply - you can see my Asda uniform that’s my salary for the year. It’s not a scheme for everyone as portrayed.
I read the same news headlines/articles about this, literally 48 hours after I'd had a discussion with a friend on how I was now moving all of my Dividend paying investments into S&S ISA's and a SIPP after the upcoming tax free payment bands were going to change over the next three years for anything outside of these tax wrappers. I literally said to my friend that I would not be surprised if before I come to retirement age, after working my arse off and educating myself on investments and making my money work hard for me (which is not taught in school, compound interest for one fine example), in order to live comfortably and not rely on a state pension, that the Government would come raiding my nest egg.
Smacks or Blair&Brown.....Everyone! Buy Diesel cars! then ten years or so down the line, oh by the way what we said is shite. Your diesel car is worth nothing now and you'll have to spend a fortune on a 'cleaner' car.
No one seems to be talking about the fact of why interest rates and the cost of living is so high is due to....yes, the actions of the governments across the world. This inflation/cost of living hasn't been created because of wage rises, how many people do you know who have had one!? Certainly not inline with inflation. It's because of the governments, the world over shutting the world down. What did they think would happen? suddenly the world restarts and everyone wouldn't want things again.
Governments are making the working person pay for their cock-ups. Never taking account for their own actions. They never seem to think of the consequences.
I'll get off my soap box now.
Completely agree with everything you said and share your pain. What can we do about it. If only we all came together and stopped the endless theft.
Understand your frustration, but just wanted to mention it was the Blair/Brown government that introduced the ISA. Before this, investing was not for the little people. They also brought in the £200 payment for every child to be invested, which has also been scrapped.
Your school didn't teach you compound interest?
Blair and Brown? Why not of Harold Wilson or William Ewart Gladstone?
Totally agree with your analysis this plan like many others they come out with has many floors. You can’t retire on 100k the limit should be more like 500k if you want to tax the rich and encourage the middle class to save and support themselves once they retire.
I totally agree !
"The plebs are saving money! Stop them!"
That was my first thought. :D
Something similar happened here in Sweden a year back or so
Some politicians wanted to raise taxes on accounts meant for the stock market
They said the same thing I keep hearing about your ISA. It only benefits the rich billionaires and so on
But the amount of normal people using these accounts is over 300.000 or more and this is close to 3% of our population
Do you think we have 300.000 billionaires in Sweden? Of course not! It's mostly normal workers trying to save some money and make it grow to plan their financial future
They got so much backlash for this stupid idea and had to take it back a few weeks later
Fight for your ISA is what I'm trying to say
I hope this video goes viral as this is an outrage! Well done mate for bringing this to light.
Good alternate suggestion Damien. Even the term "savings rate" and "average balance" suggests they are only considering cash Isa in the report.
The practicalities of introducing a cap on a stocks and shares Isa are immense. So you do it whenever the market moves? So in February you have £110k and on April 5 it's £90k.
What would be the tax charge in that case? Is it on unrealized gains (new principle). What about reinvested dividends?
Can't just be cash ISAs. People would just move to savings accounts. No cash ISAs are paying enough interest to go over the tax threshold on 100k anyway.
@@ac0ncernedcitizen well, that's the point. If you limit cash Isa to 100k then they will have to go elsewhere for balances above that.
You can contribute £20k a year to a cash Isa which you get you to 100k pretty quickly, regardless of interest rate.
As noted in the video though, if you are saving £20k a year into a cash Isa then you clearly have enough. You don't need any more tax relief
This is outrageous. I’m already fed up that the middle class in this country are being taxed to the bone. What I dislike in this country is that “helping the poorest” is basically to give them free stuff, instead of helping them to go to work or to improve salaries in a way that if someone is working, they should be able to cover bills and food. I think salaries are not high enough in the UK, comparing to other western countries. I saw a statistics on Statista that 21 million people are getting some form of benefit in the UK. 47% of London’s population are getting some kind of benefit. Sounds like a boatload of people. I don’t understand why the government is working on resolving the causes of this instead of taking money away from the middle classes. Also, they spend the tax money in a very inefficient way.
Fantastic analysis and critique of that report. The government has identified people retiring early as a problem in a context where there is a tight workforce. I think this makes it likely they will go after ISAs and/or pensions possibly without even bothering to change the scheme to help people get started saving. This is easier than going after those who can offshore money etc.
This will cause people to retire earlier. If you can't accumulate any more wealth why continue working?
I’ve put money in to ISA’s every year rather than a pension. A limit would destroy my retirement planning.
New ISA meaning= Infirmity Starving Account 😔 Save here, and you will work till 102.
I came to this party late. The issue is that lots of folks have never been educated in investing stocks and shares. Such a pity as their pension funds will be in stocks and shares or a mix of stocks, bonds, gilts and property. But the country needs investment in industry and so stocks and shares ISAs are a good way to encourage such investment.
One of the difficulties these days is that you can't just lob money into a fund without it being managed by a 'platform or in a wrapper' confused the hell out of me when I have been investing in ISAs, PEPs and stocks and shares for most of my life (I started at 18!)
Al the points you make are good. Unfortunately the poor will part with their money without much thought of long term saving, the newish pension requirement was a good place to start. It is a pity that schools don't start investment clubs.
Thank you Damian for your analysis, great content as always.
I started learning to invest 5 years ago and have wanted to use my ISA to compound my hard earned money for a nice retirement so I don’t have to live of the state. This has literally panicked me that plan has now gone out the window. Will this now make people invest in property which has also been hard hit recently? Seems the normal person trying to sort out their own future and working hard is becoming forever more difficult in the U.K.
maybe time to leave the U.K.
Knock Knock… Who’s there ?
ISA…
ISA going to get a new plan
Im in the same position as you... I started 5 years ago trying to build retirement fund so dont have to be poor when im old.... Now theyve ruined my future once again....
Exactly my thoughts! I read this and wondered how taking money out of the pockets of prudent savers with (let’s face it) modest saving in the grand scheme of things will help the poorest save anything?? Of course the poorest people are the ones with a bigger percentage of their stash in their current accounts. It seems to vilify even the most modest of savers, as you say!
Taxed until our eyes pop! The world is a smaller place these days so…
Great observation, makes sense to me. Going off topic slightly I was really annoyed to discover that my son who works for the N.H.S. will only get his work place pension at state retirement age, 68 for him. Could be dead before he gets it. So instead of putting the maximum contributions in to match employer he now invests that money else where. I don't want him to work until he drops which is what I basically had to do.
Well I will check again obviously but I was told all new nhs workers are as I said not eligible for their pension until state retirement age. This information was given to me by a union rep when I was in hospital, but I agree that public sector pensions are good. Keep up the good work.
@@robertjones2053i am a public sector worker. Fire service to be exact. I am not in the pension through work. For several reasons. Many people say that the pension is soo good. Better than any on the market privately today. This depends on how you look at it. I will try to educate you.
1. Contributions are circa 350 a month basic. This is a lot of money...
2. To get a full pension it is 40 years. I would retire at 63. To get a full pension. However im not in it.
3. If i saved 350 a month for 40 years.. into a 0 interest account. That would still be over 150,000. However my forecast when i retire from the pension was circa 65k lump sum and around 800 to 1k a month. Not brilliant.
4. If i can no longer pass fire service fitness tests. Become injured or cannot work due to ill health. My pension will be deffered. And i will not get it to state pension age and will not get in enhanced. Will lose money.
5. You are stuck in the job.. if yoy want to leave the service and are in the pension. If you leave you cannot move your pension. It again is defferes. So people stay in the job purely due to the pension trap.
6. Most people who retire from public sector dont retire. Leave the service get the modest lump sum. Pay of their kortgage and debts. Get a new full time job.
7. Most people unless they actually work for the emergency services/public sector believe they know alot about the pension etc. In reality they dont.
8. 350 quid a month into a provate pension/stoxks and shares isa. Over 40 years. With felixibilty to increase or reduce payments. Get at money if needed for an emergency. Not being locked into a job you may wish to leave. And would gove you a return with just a 7 pc a year yield over 1.3 million at retirement. Ita a no brainer. The public sector pensions will be a thing of the past. More and more people seeking advice and leaving. Not to mention being able to afford it.
9. Hope that helps mate
What the actual eff!
Watch the whole video! Just a think tank chatting Shite at this point.. But really not a good omen..
@@DamienTalksMoney Too many poor people know about ISA's and stuff now. They won't be lucrative forever. Property is the only way my balding friend.
They waste £200billion on a train set nobody wants or needs, and then raid people's savings to pay for their mistake.
Madness, finally at a stage in my life to be able to even use an ISA. It's been a terrible year of just watching the stocks go down, this would be the typical topping =/
Now is probably a good time to buy stocks given how much value they've already lost. Long term stock markets always rise, so unless you need the money in a short timeframe it isn't a concern. Obligatory rider: I am not a financial advisor and this is not financial advice.
Your young, that makes you a net saver for many years to come, stocks down = more value for money aka lower risk, higher returns.. be cautious when things look expensive that's usually time to build cash and wait for better opportunities
Hey... I've got a simple suggestion, if they want to increase UK investments. I know, its not a British thing to do but.. Just scrap the stamp duty of 0.5% on shares on London Stock Exchange. But it will never happen, because the Government is bent on discouraging any investments.