October 2025
10Oct

US. Residence-Based Tax: Social Security, Pensions And 30% Withholding

The endorsement of an elective residence-based taxation model by former IRS Commissioner Charles Rettig and former IRS Commissioner Counselor Tom Cullinan, covered in my earlier Forbes article, has sparked important discussions about fairness for Americans abroad. Their piece highlights the burdens of America’s citizenship-based tax system and calls for a shift to treat expats more equitably. An astute reader recently emailed me and our correspondence hammered out that details matter in an RBT model, especially for older expats. What happens...

October 10, 2025
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September 2025
17Sep

US. IRS finalizes Roth catch-up contribution rules, clarifies SECURE 2.0 provisions

The Internal Revenue Service has finalized regulations implementing key provisions of the SECURE 2.0 Act, including new requirements for catch-up contributions in workplace retirement plans. The rules, announced Monday, set out how plan sponsors and administrators must handle after-tax Roth catch-up contributions for higher-earning participants, as well as increased contribution limits for certain age groups. "The final regulations provide guidance for plan administrators to implement and comply with the new Roth catch-up rule and reflect comments received in response to the...

September 17, 2025
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August 2025
25Aug

UK. Thousands of pensioners overcharged £10,000 on pension withdrawals

Thousands of pensioners have claimed back more than £10,000 after being overcharged tax on their pension withdrawals, new analysis shows. A handful of people in the UK were given a refund worth more than £100,000. The HMRC figures, which were obtained by Royal London through a freedom of information (FOI) request, show an increase in the number of refunds claimed in 2023-24. Pension freedoms, which came into force from 2015, gave over-55s a range of options over how to use their defined contribution (DC) pension pot. Generally,...

August 25, 2025
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19Aug

Big tax changes for these retirement funds in South Africa

South Africans with foreign retirement funds and foreign nationals who become South African tax residents face a major shift from 1 March 2026. This follows a proposal from the National Treasury, which wants to scrap the current exemption and give SARS taxing rights over foreign retirement income. This was explained by Tax Consulting SA’s cross-border taxation legal manager, Delano Abdoll, and team lead, John-Paul Fraser. Abdoll and Fraser stressed that retirement planning is a crucial financial component for South African expatriates and...

August 19, 2025
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12Aug

India. Income Tax Bill 2025: From UPS benefits to commuted pension rules — top 5 things every pensioner must know

The Lok Sabha passed the revised Income Tax (No. 2) Bill, 2025 on Monday, August 11, a move towards replacing the six-decade-old Income Tax Act of 1961. Introduced by Finance Minister Nirmala Sitharaman in the Parliament, the bill aims to streamline and modernise the country’s tax framework. It will now move to the Rajya Sabha and, upon securing Presidential assent, become law. Out of the several provisions mentioned under the proposed bill, some key measures are specifically aimed at pensioners....

August 12, 2025
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July 2025
31Jul

UK. Over half a million still overtaxed by thousands on pensions

Millions is still being refunded to people by HMRC in overpaid pension tax, as experts call for reform to the system. New figures have revealed that more than half a million claims have now been made to claw back overpaid tax since 2015, with the total amount refunded approaching £1.5bn. In the latest quarter alone, 12,767 repayment claims were processed, amounting to £48.7m – an average refund of nearly £4,000 per person. This brings the total tax repaid so far this year to around...

July 31, 2025
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17Jul

UK. New idea to tax inherited pensions worth £90k-plus floated – instead of imposing inheritance tax

The Government is being urged to slap income tax on inherited pensions worth £90,000-plus instead of making them liable for inheritance tax. Another option is to impose a tax charge at death on unspent pensions worth £150,000, £200,000 or £250,000, according to a finance industry group calling for a radical rethink of inheritance tax changes due in two years' time. Just levying income tax or charges on inherited pensions direct would reduce the burden on grieving families yet still rake in...

July 17, 2025
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11Jul

Global Aging and Growth: Is There a Silver Dividend?

By Donghyun Park & Kwanho Shin Despite concerns about the economic impact of population aging, this study highlights the potential for a 'silver dividend' as longer lifespans extend working lives. We show that the effects of aging on growth are highly nonlinear and concentrated in more advanced, older economies. Labor shortages are often offset by rising labor force participation, particularly in countries with higher life expectancy, stronger human capital, and greater trade openness. Larger governments, measured by consumption, appear to...

July 11, 2025
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03Jul

Tax-free pensions may spark a new era of savings for Kenya

The recently enacted Finance Bill 2025 has introduced sweeping changes to the country’s pension and tax framework that will effectively redefine retirement planning while offering much-needed relief to workers grappling with high inflation, constrained incomes, and economic uncertainty. At the heart of the law is a bold move; to make all pensions and gratuity payments, whether in the public or private sector, fully tax-exempt. This is a significant departure from the current regime, which taxes certain pension and insurance payouts,...

July 3, 2025
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June 2025
06Jun

Optimal Income Redistribution

By Pavel Brendler, Eva Carceles-Poveda & Arpad Abraham We study whether a redesign of the social security and income tax-and-transfer systems can deliver significant welfare gains. Our rich quantitative model features both realistic inequality over the life-cycle and the key main channels through which redistributive policies can distort aggregate allocations. We find that there are two distinct ways to achieve significant welfare gains with joint policy reforms. The first prioritizes reducing distortions through a regressive pension system, resulting in higher...

June 6, 2025
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