The loss of experienced, high-productivity workers would weigh on growth and reduce tax revenues at a time when the Government is desperately trying to increase employment rates.<\/p>\n
After all, HMRC data show the top 1pc of earners are responsible for a quarter of all income tax revenues, with the top 5pc of earners paying almost half the roughly \u00a3320bn a year in income tax paid to the Exchequer.<\/p>\n
However, Arun Advani, the director of the Centre for the Analysis of Taxation, says it isn\u2019t clear that inheritances will lead more productive people to retire.<\/p>\n
\u201cLarge inheritances will go to those who have higher incomes on average. But as a share of lifetime income, inheritances are relatively flat: for someone born in the 60s, inherited wealth will be worth about 10pc of all the income they earned.<\/p>\n
\u201cCombined with a relatively flat pension amount, actually, it is people who are on low to middle incomes who probably are most likely to retire when they get this.<\/p>\n
\u201cThose at the top often have jobs they at least partly get other value out of, and so some keep working anyway.\u201d<\/p>\n
Bee Boileau, at the IFS, says the phenomenon is more likely to affect richer people.<\/p>\n
\u201cWe know voluntary retirement is much more common among higher-wealth older people, with lower-wealth older people much more likely to be out of work for other reasons, in particular long-term ill-health or disability.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The loss of experienced, high-productivity workers would weigh on growth and reduce tax revenues at a time when…\n","protected":false},"author":2,"featured_media":494532,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,219,246,18262,241995,111,139,69,87570,244,245,294,1177,25421],"class_list":["post-494531","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-economy","tag-finance","tag-inheritance-tax","tag-jobs-and-employment","tag-new-zealand","tag-newzealand","tag-nz","tag-parenthood","tag-personal-finance","tag-personalfinance","tag-retirement","tag-standard","tag-uk-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/494531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=494531"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/494531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/494532"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=494531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=494531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=494531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}