Investments - Strategies, Ideas, Options & advice

[Red devil]

Each to their own but compromising between the biggest pension pot you can achieve ‘v’ time whilst you’re still healthy is worthy of consideration.

That is the biggest gamble one can make. The longer one works the less time to spend it.
I'm very very fortunate in having a defined benefit pension so I've got some clarity. That being said I'll be going in 3yrs no matter what

 

[Hobbit]

Each to their own but compromising between the biggest pension pot you can achieve ‘v’ time whilst you’re still healthy is worthy of consideration.

That is the biggest gamble one can make. The longer one works the less time to spend it.
I'm very very fortunate in having a defined benefit pension so I've got some clarity. That being said I'll be going in 3yrs no matter what

I’ve a got a defined pension, a separate pot & the state pension. It’s the prior planning, which I guess what the thread is about, is what gives us the flexibility to choose the when…

 

[Mudball]

I am just worried that …. She will kick me .. what is the point of working if you have to give over 50% to the state.. better off being on benefits and receive that 50%.

No incentive to work/save… if I was 15 years younger, I would look to move overseas and start again..

 

[RichA]

I am just worried that …. She will kick me .. what is the point of working if you have to give over 50% to the state.. better off being on benefits and receive that 50%.

No incentive to work/save… if I was 15 years younger, I would look to move overseas and start again..

At what point are you likely to be giving over 50% of your income to the state?

 

[Pants]

At what point are you likely to be giving over 50% of your income to the state?

I believe #Mudball is suggesting that Rachel might treat any remaining pension pot as part of the deceased person's estate. For example, if there's a £100,000 pension pot, and it's subject to 40% inheritance tax, the heir would receive £60,000. If the heir is a higher-rate taxpayer and draws down the pension, they'd then pay 40% income tax on the withdrawal—reducing the £60,000 to £36,000. That’s an effective tax hit of 64%!!!

 

[SwingsitlikeHogan]

At what point are you likely to be giving over 50% of your income to the state?

Indeed, it’s not 40% plus 8% plus 2%. That does make 50% - but not all of my income.

 

[RichA]

I believe #Mudball is suggesting that Rachel might treat any remaining pension pot as part of the deceased person's estate. For example, if there's a £100,000 pension pot, and it's subject to 40% inheritance tax, the heir would receive £60,000. If the heir is a higher-rate taxpayer and draws down the pension, they'd then pay 40% income tax on the withdrawal—reducing the £60,000 to £36,000. That’s an effective tax hit of 64%!!!

So a top 10 percentile earner is better off claiming benefits and waiting for an inheritance than working?
Not sure I'm understanding that point of view.

 

[Fade and Die]

I am just worried that …. She will kick me .. what is the point of working if you have to give over 50% to the state.. better off being on benefits and receive that 50%.

No incentive to work/save… if I was 15 years younger, I would look to move overseas and start again..

Out of interest where would you go? What country gives you an opportunity to earn over £100,000 a year and has low taxes. Genuine question.

 

[RichA]

Out of interest where would you go? What country gives you an opportunity to earn over £100,000 a year and has low taxes. Genuine question.

UAE.
As my pal is finding out, good luck getting a tee time.

 

[Fade and Die]

UAE.
As my pal is finding out, good luck getting a tee time.

Not really a place to raise a family though is it?

 

[RichA]

Not really a place to raise a family though is it?

I don't think so. But I can understand the appeal of a fixed-term stint of high wages and no income tax then coming home in a position to get said family firmly on the property ladder.

 

[Mudball]

At what point are you likely to be giving over 50% of your income to the state?

Well it is already the '60% tax trap' between 100-125k.. I am already hitting my 45%. Now if she raids all salary sacrifice and other bits, it will get worse. The school VAT has already taken a chunk and i dont think we will have may holidays till we get to Uni. (Yes that is a choice we make - education over holidays).

The middle east is tempting. A friend - Partner in a Big 4 accounting firm - recently relocated to middle east for a 'few years'. Even if he goes full tilt for next 5 years, he should banked a few Benjamins. If you don't fancy middle east Singapore is another option - 25% tax, no capital gains or inheritance tax. Even Aussies have a simple progressive tax that caps out at 45%.

The other option is to become self employed... this then defeats the purpose of raising taxes as it means lower contribution but same mouths to feed.

We need to make it more beneficial for people to get productive. We dont spread equality by brining down the high earners, but by bringing up the low earners.

 

[Mudball]

BTW, just saw this on Reddit.. not fact checked.. (

https://www.reddit.com/r/HENRYUK/comments/1or1zbo/62_tax_bracket_about_to_become_66_23_in_tax

)

62% tax bracket about to become 66% (2/3 in tax)​

https://www.telegraph.co.uk/politics/2025/11/07/rachel-reeves-budget-income-tax-rise-plans/

2% on income tax without a 2% reduction in NICs above £50k means the following at £100k:

• 42% higher tax rate
• loss of allowance - 22% tax rate
• 2% NICs

Effective rate of 66%. So the proposed income tax rise is actually double between £100-£125k

I just don’t see this being factored in. The saving grace is she wouldn’t leak removal of the cliff edge ahead of the budget, so you never know. Can’t say I’m hopeful…

 

[PNWokingham]

BTW, just saw this on Reddit.. not fact checked.. (

https://www.reddit.com/r/HENRYUK/comments/1or1zbo/62_tax_bracket_about_to_become_66_23_in_tax

)

62% tax bracket about to become 66% (2/3 in tax)​

https://www.telegraph.co.uk/politics/2025/11/07/rachel-reeves-budget-income-tax-rise-plans/

2% on income tax without a 2% reduction in NICs above £50k means the following at £100k:

• 42% higher tax rate
• loss of allowance - 22% tax rate
• 2% NICs

Effective rate of 66%. So the proposed income tax rise is actually double between £100-£125k

I just don’t see this being factored in. The saving grace is she wouldn’t leak removal of the cliff edge ahead of the budget, so you never know. Can’t say I’m hopeful…

It is shocking all the likely options we have coming in 3 weeks - we are already over the peak of the Laffer curve, meaning these tax increases will result in lower tax receipts, lower economic growth and then ultimately more pain spread across the tax spectrum. Our current leaders are economically illiterate and we have a doom-loop spiral in full swing. All very depressing. BTW - Arthur Laffer has done a couple of good interviews recently like this one. I read an article about a semi retired NHS anaesthatist recently who said it is just not worth him working any more despite massive need from the hospitals as the tax situation is just too severe, so he has given up, along with many others who either bring forward retirement, cut working hours or move abroad etc. I feel the same and may well bring forward retirment..

 

[SwingsitlikeHogan]

Not really a place to raise a family though is it?

After many years out there having a great time and life, friends of ours have just left Dubai with their two young children as they don’t want to bring their children up there…now that the eldest is reception age.

 

[D-S]

Not really a place to raise a family though is it?

Unbearable place to live May to September.

 

[Mudball]

Not really a place to raise a family though is it?

As compared to?

Outside the London & Southish bubble, where is the ‘nice’ place to raise a family in the U.K. these days?

 

[D-S]

As compared to?

Outside the London & Southish bubble, where is the ‘nice’ place to raise a family in the U.K. these days?

Not sure where ‘southish’ is but it’s ‘nice’ around here, as it is in many parts of the UK that I’ve visited.
Similar to almost every country in the world there are certain areas of this country which aren’t ‘nice’ and a lot that are.

 

[Fade and Die]

As compared to?

Outside the London & Southish bubble, where is the ‘nice’ place to raise a family in the U.K. these days?

I can think of any number of nice places to raise a family that isn’t “Southish”
Wife’s family is from West Cumbria, lovely place to live, cheap, strong community, good golf. Only thing that puts me off is the weather.

More family live in Scotland, (nethy bridge area) they all seem happy and thriving. I bet on the whole people that live up North are happier with their lot than us down South.

 

[Neilds]

As compared to?

Outside the London & Southish bubble, where is the ‘nice’ place to raise a family in the U.K. these days?

Have you even got a glass - never mind one that is half empty?!?!?