Chancellor John Healey’s pension plan comes under fire. It’s being criticised for being “two-tier”
The “two-tier system” refers to a controversial tax policy where pensioners who rely solely on the UK state pension are entirely exempt from income tax, while those with private or workplace retirement savings face tax bills on their entire income.
“The Tories argue that the policy fundamentally subverts the principle of personal responsibility. Under this system, two people could have identical lifetime career earnings, but the individual who sacrificed salary to responsibly build a workplace or private pension pot is actively penalised with a tax bill. The person who saved nothing receives a custom state tax exemption”
Telegraph.
Don’t bother saving for your own future, because the state will tax you for it.