November 18, 2019

Corbyn’s Pension Tax to cost savers £11,000 and force millions to delay retirement

New analysis of Corbyn’s tax raid on pensions reveals that 10 million savers could lose an average of over £11,000 and be forced to delay retirement by almost three and a half years.

Labour’s plans for a massive tax raid on the retirement savings of more than 10 million British people include a Financial Transactions Tax which experts have warned will hit pensions the hardest.

On top of this their plans to seize ten per cent of private firms would see shares tumbling – undermining the savings of hardworking people.

Analysis from the Conservative Research Department found that savers in the South East will be the hardest hit with a loss of over £14,000 whilst those in the East Midlands face the longest delay to their retirement, having to work for another four years.

On top of this, nearly eight in ten of those saving for retirement would be hit with a double whammy with Labour’s plans to renationalise the assets they have invested in – a move the CBI said would mean ‘workers and older generations could end up poorer as a result’.

Region Labour's Pension Tax (£) Extra Months to Work
England 11,167 44
East Midlands 6,150 50
Greater London 12,871 45
North East 9,758 38
North West 6,835 47
South East 14,270 40
South West 7,407 45
West Midlands 10,729 41
Northern Ireland 13,718 35
Scotland 10,653 41
Wales 11,691 36
United Kingdom 11,253 43

Commenting, Therese Coffey, Secretary of State for the Department of Work and Pensions, said:

“Corbyn’s Pension Tax will see ten million savers facing a huge bill forcing them to delay their retirement for almost three and a half years.
“This is just one of the ways a Corbyn government would hammer hardworking people on top of his plans to hike up taxes by £2,400 a year, as well as the cost of his plan for unlimited immigration and the chaos of 2020 being dominated by two more referendums – one on Brexit and another on Scottish independence.
“Only Boris Johnson and the Conservative Party can get Brexit done with a deal, get parliament working again and turbocharge our economy to unleash Britain’s potential.”

Read more about how this Pension Tax will impact millions of savers (PDF)