UK Pension

[globaldiver]

15 minutes ago, tomski said:

Is this worth doing BD as I’ve 3 or 4 from previous Jobs.

In this one I’ve just increased to 6% and work put 2 times in. That’s the max I can do for that return. Could I be doing anymore. I have shares as well.

Certainly well worth having a look at.

Whether you should do more is about context; aims, aspirations, debt, tax position, other assets (ISAs, for example)

[little whitt]

13 hours ago, Francis Fogarty said:

I'm with Mounts on this. You're never to young to start.

Just got my tax new codes, and the first lines look great, until you see that the State Pension is taxable. I've got some private occupational ones as well so we're ok, but if you're relying on you SP it's not as comfortable.

Best bit of info I got off my dad was, get in the works pension. That was 1971.

That what Pisses me Off

Your Paying MAD MAX on a Pension you have paid in to all your life and 

And paid MAN MAX all your life for it 

[globaldiver]

18 minutes ago, little whitt said:

That what Pisses me Off

Your Paying MAD MAX on a Pension you have paid in to all your life and 

And paid MAN MAX all your life for it 

I don’t understand 

Are you saying that it shouldn’t be taxable?

[little whitt]

9 minutes ago, globaldiver said:

I don’t understand 

Are you saying that it shouldn’t be taxable?

YES its a Pension 

[globaldiver]

1 minute ago, little whitt said:

YES its a Pension 

Most pensions are taxable, otherwise people with little money/income would be subsidising those with large pensions, which wouldn’t be right, I think you’d agree?

There was a much more preferential regime before 1987/89 and people could access their whole fund as tax free cash. Footballers could access their funds from age 35. The fund that could be built up was unlimited.

Alan Shearer, I have been told, was a massive beneficiary, starting his career and having secured preferential status, then building up a massive fund, available to him from 35.

[globaldiver]

11 minutes ago, little whitt said:

YES its a Pension 

Oh and there are plenty of tax benefits in pensions; tax deferral (AKA relief) on the way in, fund invested tax efficiently, 25% tax free from 55. And taxable doesn’t mean taxed, you still have a personal allowance.

And die before 75, the fund is tax free (no income or inheritance tax) to whoever you leave it to. (Bit different after 75)

[Sweep]

I still know a lot of people, who don't have any private pensions at all. They'll be truly fucked if/when they retire

[Casino]

13 hours ago, Ani said:

 

It sounds crazy but you need a pot of at least £500k at retirement and that is based on current prices, add inflation in there it will soon by nearer £1m 

I hope it is crazy cos mine is miles off that

Less than half in fact, but theres the rental house i guess

And wifes nhs pension is really good

Itll be reet

[Cheese]

1 minute ago, Sweep said:

I still know a lot of people, who don't have any private pensions at all. They'll be truly fucked if/when they retire

One of the very few good decisions I've made in life is signing up to our Company Pension Scheme when I was 16. Even that wasn't really my decision - some old bloke said "Trust me, you need to sign that", so I did. Doubt I'll ever see any of it, but my kids will.

[FrancisFogarty]

1 hour ago, globaldiver said:

I don’t understand 

Are you saying that it shouldn’t be taxable?

I’m not going to argue about it, but if someone had told me at that you have to pay into a pension until you retire. Then you can’t have it all back in a lump sum, and you  have to pay 20% tax on it I’d have said no, it’s okay I’ll put it in a savings account and have it when I fucking well want, plus interest.

Of course this is all hypothetical because for most of my 52 years working I was daft as a brush. Most of my money went on wine, women and song. I just wasted the rest. And when the doctor told me it would kill me I stopped singing.

[BobyBrno]

1 hour ago, Cheese said:

One of the very few good decisions I've made in life is signing up to our Company Pension Scheme when I was 16. Even that wasn't really my decision - some old bloke said "Trust me, you need to sign that", so I did. Doubt I'll ever see any of it, but my kids will.

Some old bloke said the same to me. It’s why Crawley gets upset that I’m now retired and enjoying a nice lifestyle. Don’t knock it, it’s your future.

One day you’ll give thanks to that bloke. It will come sooner than you think.

[globaldiver]

2 minutes ago, Francis Fogarty said:

I’m not going to argue about it, but if someone had told me at that you have to pay into a pension until you retire. Then you can’t have it all back in a lump sum, and you  have to pay 20% tax on it I’d have said no, it’s okay I’ll put it in a savings account and have it when I fucking well want, plus interest.

Of course this is all hypothetical because for most of my 52 years working I was daft as a brush. Most of my money went on wine, women and song. I just wasted the rest. And when the doctor told me it would kill me I stopped singing.

That’s fine, it’s a choice available to you (ISA might be better 😀)

Totally agree about the rest; enjoy life, within whatever balance is right for the individual!

[Not in Crawley]

6 hours ago, globaldiver said:

Easy, if you know how

Aye - need to speak to.you about that!

[Cheese]

2 minutes ago, BobyBrno said:

Some old bloke said the same to me. It’s why Crawley gets upset that I’m now retired and enjoying a nice lifestyle. Don’t knock it, it’s your future.

One day you’ll give thanks to that bloke. It will come sooner than you think.

Not knocking it in the slightest. As I said, it's one of the few good decisions I've made in life, and I'll always be grateful for his advice. Think you're reading something I didn't write.

Edited March 4, 2023 by Cheese

[BobyBrno]

1 minute ago, Cheese said:

Not knocking it in the slightest. As I said, it's one of the few good decisions I've made in life, and I'll always be grateful for his advice.

Yep. Misread it. 👍

[Tonge moor green jacket]

54 minutes ago, Francis Fogarty said:

I’m not going to argue about it, but if someone had told me at that you have to pay into a pension until you retire. Then you can’t have it all back in a lump sum, and you  have to pay 20% tax on it I’d have said no, it’s okay I’ll put it in a savings account and have it when I fucking well want, plus interest.

Of course this is all hypothetical because for most of my 52 years working I was daft as a brush. Most of my money went on wine, women and song. I just wasted the rest. And when the doctor told me it would kill me I stopped singing.

Still pay tax on the interest remember. Only so much tax free (isa for example).

You've also paid tax on the money you save beforehand. You don't on pension payments- only when you spend it after.

Swings and roundabouts, whatever is likely to yield the most.

[Winchester White]

What is a good amount to put away? Is there a very loose rule of thumb? With my employers contribution it totals 10% of my salary going to my pot every month. No idea if I am way off course or not.

[globaldiver]

40 minutes ago, Winchester White said:

What is a good amount to put away? Is there a very loose rule of thumb? With my employers contribution it totals 10% of my salary going to my pot every month. No idea if I am way off course or not.

In the old days, there was a maximum that could go in, depending on age. It wasn’t thrown together.

• Age 35 or less a maximum of 17.5%
• Age 36 - 45 a maximum of 17.5%
• Age 46 - 50 a maximum of 17.5%
• Age 51 - 55 a maximum of 20%
• Age 56 - 60 a maximum of 22.5%
• Age 61 - 74 a maximum of 27.5%

But…again, context is everything. For example, if you are basic rate taxpayer, why put it all into pension, why not put anything beyond what you do at work into an ISA?

Higher rate taxpayers have the benefit of tax deferral (relief), so many can have 40% relief now and manage it to pay a maximum of 20% in retirement.

Does that help?

Edited March 4, 2023 by globaldiver

[Winchester White]

23 minutes ago, globaldiver said:

In the old days, there was a maximum that could go in, depending on age. It wasn’t thrown together.

• Age 35 or less a maximum of 17.5%
• Age 36 - 45 a maximum of 17.5%
• Age 46 - 50 a maximum of 17.5%
• Age 51 - 55 a maximum of 20%
• Age 56 - 60 a maximum of 22.5%
• Age 61 - 74 a maximum of 27.5%

But…again, context is everything. For example, if you are basic rate taxpayer, why put it all into pension, why not put anything beyond what you do at work into an ISA?

Higher rate taxpayers have the benefit of tax deferral (relief), so many can have 40% relief now and manage it to pay a maximum of 20% in retirement.

Does that help?

Thanks pal. I have had a personal pension since I started work at 20 but this pension has been running since I was 36.

Give it a couple of years when things settle down and I have less outgoings I think I will look to add a bit more to it.

[FrancisFogarty]

For any of you pension bods. My brand new tax free allowance has gone up by £1,017

But what does it mean ?

[Winchester White]

27 minutes ago, Francis Fogarty said:

For any of you pension bods. My brand new tax free allowance has gone up by £1,017

But what does it mean ?

You don't pay tax on that extra £1017 I think?

So you are 200 quid better off if I am thinking correctly.

[crawshawbooth]

I have just come ashore on a dingy from France

Asking for my thousands of friends ,how much is my pension allowance?

And can i get to see a GP without any hassle or waiting time?

[stevieb]

22 hours ago, globaldiver said:

Auto enrolment being extended to 18 year olds.

Generally, is auto enrolment a good idea?

Yes

21 hours ago, gonzo said:

What a great idea. One thing Ill bring the lads up to do is have their ducks in a row with savings and pension.

Fuck me I wish Id have done it

Same 

I opted out of a career average earnings pension at 21 for about 7 years only joining when the Mrs got up the duff and I went sensible. The 18 months I paid into that before it changed to defined contribution the valuation I got last year was eye watering.

That will fuck me over no doubt in the long run. 

I'm twatting loads (% wise) in now and my works pension app estimate I can retire at 58. It doesn't know the Mrs has fuck all in her pot though so suspect I'll be going til I'm dead like everyone else. 

Happy Saturday. 

[FrancisFogarty]

32 minutes ago, crawshawbooth said:

I have just come ashore on a dingy from France

Asking for my thousands of friends ,how much is my pension allowance?

And can i get to see a GP without any hassle or waiting time?

You and your friends will be able to clearly see a GP as you will get free glasses and all.

[little whitt]

45 minutes ago, crawshawbooth said:

I have just come ashore on a dingy from France

Asking for my thousands of friends ,how much is my pension allowance?

And can i get to see a GP without any hassle or waiting time?

YES

And hotel Awaits too SIR 

anything else you want just ask