Reply To: Latest Money Magpie Investing newsletter: Investors hit with tax changes….
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One of the many oddities about the Autumn Statement – and Budgets generally – is that really important, long-term affecting policies are often largely ignored by media and voters generally. Changes to the taxation of dividends is one of them. No one really cares about the ‘rich’ being taxed – and that’s how it’s seen when it comes to dividends. But actually the taxing of dividends affects anyone with a pension…and that’s the majority of the country now, thanks to auto-enrolment.
As pension funds are largely invested in the stock market (particularly now that the bond market is so dodgy) any increase in the taxation of dividends is going to make it harder for fund managers to build up decent pension pots for us, their clients.
Yet again, workers are looking at working longer, for less, in order to afford their retirement!