Who is able to build up this sort of pension pot?

[NetballMumGrrr]

£1 million and now £1.7 million’ who can put £40k a year into a pension? And now £60k?

such disparities in wealth in this country!

BBC Pension Article

This!
Poor little darlings how did they manage before?

He’s playing politics I’m afraid. Bad move on that one Keir, don’t piss off the medics.

For the hard of hearing at the back, this is not about rich people hiding money from taxation.

It's about trying to address the chronic shortage of doctors in this country and one reason for that is that experienced doctors are quitting because they're being very heavily taxed on money that does not exist, due to the way their pension is valued.

They could have kept the lifetime allowance but exempted money in approved final salary pension schemes and solved it that way.

The majority who benefit will not be doctors

Is there sone measurement happening? How many doctors do they think will return ? And how many will defer retirement ? Will the handout be scraped if certain targets are not met ?

RR just said they'd keep the new rule on pensions for medics but reverse it for everyone else. Is that even legal?

Apparently some of them managed by working less or not at all, which given the chronic shortage of experienced doctors in this country is a bit of a concern.

Somebody will have to remind me but I think under some previous legislation there were some exemptions to the LTA limit for some groups (some in the legal professions? - ring any bells with anybody).

It has certainly been possible to be in the private sector and hit the LTA limit (and clobber the annual contributions limit as well), you needed a good but not necessarily astronomic wage and also a long contribution history.

The part of the solution at one company was to go part time (which then caused establishment/work coverage issues)....

This isn't just an issue that is confined to consultants and bankers.

@Madamecastafiore

I think under some previous legislation there were some exemptions to the LTA limit for some groups (some in the legal professions? - ring any bells with anybody).

To possibly answer my own question I might be thinking of the Judicial Pension Scheme 1993..

www.mypension.com/media/1446/moj-jupra-1993-scheme-guide.pdf

Someone linked me on another thread to stuff about how the judicial pension scheme managed this because it was unregistered, whereas the NHS one is. But obviously the NHS one covers an absolutely massive group and income spectrum so I don't know whether that would be workable. I don't know a lot about the specifics of how this all works though so don't offer this as a remotely informed take.

You are also thinking of MPs!!

Funny, that!

Do you actually think doctors don’t deserve to be paid well for what they do?

They are already paid well, hence their reaching of the LTA. As to what they do, going on strike is obviously higher on their list than helping their vulnerable patients.

In the real, non public sector, world the size of pension fund needed to generate £30,000 a year, risk-free and index linked would be between £1.2m and £1.5m. Even taking a draw down approach, and attendant risk, would require the fund to be £1m or so. Way beyond what most private sector employees can aspire to. Yesterdays changes ostensible my aimed at doctors, will actually cost in the region of £3 billion and will benefit a tiny minority of people. I’m one, but though I’ll be a lot better off I disagree that now was the time do to it.

OP you’re forgetting to factor in Compound Interest. If you pension is invested well then it increases by X% each year through interest.
Look up a compound interest calculator, you’ll be surprised what a small pot now will become in 20 years just on compound interest alone.

I’m a stay at home mum, we max at the SIPP allowance for me, a lifetime ISA, and a stock and share account. The first two have a small government contribution and I’ve invested them well so my interest is high! My husband contributes 12% of his salary and his company contribute 6%. We also have a private retirement stock and share account for him too.
If the average compound interest is as low as 2% we will have over £2M at age 55 and intent to retire.

To add: not public sector, or doctor.
We’re currently 31.

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

100K now, In a pot that gets 3% interest will be 245k in 30 years without you added anything to it.

It also depends on market conditions.

I have always earned about 3x national wage, so about £80k today.

I started my pension in 1985 and have paid in whatever was the standard minimum (3% or 5%) except for one period of five years when employer & I paid in 12.5% between us. Because there have been periods of strong growth during that time, my pension pot is currently about 500k.

At no time have I been a mega high earner so I can see that someone earning even 20k more than me could add in an extra £5k a year, and have double what I have now. That includes a lot of people.