Retirement

[Alan Clifford]

Pension arithmetic is probably not quite as convoluted as WHS, particularly if you play in two jurisdictions. At some point I was contracted out so I don't get the full state pension. But checking this stuff is impossible.

 

[Bunkermagnet]

Pension arithmetic is probably not quite as convoluted as WHS, particularly if you play in two jurisdictions. At some point I was contracted out so I don't get the full state pension. But checking this stuff is impossible.

So was I, but then was advised later on to contract back in. I have my full state pension allowance, or so the Gov.UK site says anyway

 

[Tashyboy]

So was I, but then was advised later on to contract back in. I have my full state pension allowance, or so the Gov.UK site says anyway

Personally I would ring them, quite a few lads that finished at the pit thought they were on a full state pension according to the Gov.uk site. After a phone call they were not

 

[williamalex1]

Personally I would ring them, quite a few lads that finished at the pit thought they were on a full state pension according to the Gov.uk site. After a phone call they were not

I know my state pension is lower because I was opted out while paying my works pension.

 

[harpo_72]

I am the same, full contributions but 10 years till I receive the max new state pension.
I have been looking into options of ways to make my earnings work the best for me in the remaining years and have come across salary sacrifice pension payments, it looks a good ideal then you realise that the money is with the pension providers and what they take off for fees and the forecasts for the payouts are dismal, I was reading one that quoted a 1/2 million pound pension pot would only give you £1,250 a month if you chose to take your tax free 25% and if you didn't take the lump sum it would be 25 years for the figures to level, Oh they know how to make money don't they.

I remember when my first place of work had to provide a pension for its workers. The FA came in answered a few questions kept telling everyone that 20p in every pound was contributed by the government.. so when asked what was the management fee he wasn’t so keen to answer. Turned out it was at least 7p in every deposited pound irrespective of fund performance.
So in the end you may be lucky if it’s slightly over what you put in … but the good news was you had supported someone who wasn’t being pressured to perform..
Suffice to say, I did not opt in and spent my money on my apartment which returned a 100% return after 5 years. I then moved into the wife’s house paid a chunk of her mortgage off did a new kitchen and double glazing and set about reducing that mortgage.
What is not widely stated is interest is dead money .. where possible don’t pay it. Raising interest rates was never and will never stimulate an economy, it will make a select few very wealthy- unless of cause we tax them to an inch of their lives.

 

[Crazyface]

And just emphasise my comment above. It was only after getting advice that I found out I was 4 years short. Up to then I was 'certain' that I was scheduled for a full contribution.

You can check online for how many years you have.

 

[Crazyface]

We are in a similar situation, but my wife has to have time freedom as she is the preferred parent for our son .
We both work mainly from home, I work European hours so my day is done around 16:00 which means I pick up the child care and general duties.
But I think we are bit unique in this respect, for a UK family.
Most fathers are at work and travelling home for18-19:00, I know I was when I was permanently employed.
I don’t know why now 2 wages are required to run a household but it does seem to be the case. Or at least one large wage. I did calculate how much I needed to earn a day to maintain us and that was without extras .. it’s actually quite frightening but most of it is mortgage, electricity/gas, services.
Remove the mortgage, or reduce the interest down as non profit ( do that to the services as well ) and it would be possible… I do believe the “we must make profit for our shareholders “ is costing too much .. but that’s probably not a view shared by many

The two wages are required because people are chasing what the megga rich have. Plus, extra TV (we never had to pay for this), mobile phone contracts ( family of four, lord knows how much £50 per month?), car rental, instead of purchase(£250+ per month ). Child care, instead of mum at home, (we know of people paying £600+). And there's your second wage gone. Take these out, and one parent is at home.

 

[PJ87]

The two wages are required because people are chasing what the megga rich have. Plus, extra TV (we never had to pay for this), mobile phone contracts ( family of four, lord knows how much £50 per month?), car rental, instead of purchase(£250+ per month ). Child care, instead of mum at home, (we know of people paying £600+). And there's your second wage gone. Take these out, and one parent is at home.

No. That's entirely incorrect

They need two incomes to support basic needs like mortgages. Energy bills or childcare.

It's narrow view to say oh have the parent at home

It's majority time the mum. Who gives up her career. But in 6 years when childcare isn't required she can't just get that back.

Also good for people's mental health to have a job rather than be a Victorian housewife.

 

[Hobbit]

No. That's entirely incorrect

They need two incomes to support basic needs like mortgages. Energy bills or childcare.

It's narrow view to say oh have the parent at home

It's majority time the mum. Who gives up her career. But in 6 years when childcare isn't required she can't just get that back.

Also good for people's mental health to have a job rather than be a Victorian housewife.

What’s wrong with a parent at home if a family prefers that, and can afford that?

‘It’s a narrow view to say oh have the parent at work.’

And there’s nothing Victorian about having the choice and then deciding to be a house parent. Some people have jobs, and can’t wait for 5pm to arrive, and some have careers, and enjoy being at work. The mere fact so many choose early retirement suggests there’s more to life than work.

What works in your life might not be someone else’s choice. You really shouldn’t diss someone else’s life choices, just as they shouldn’t diss yours.

 

[PJ87]

What’s wrong with a parent at home if a family prefers that, and can afford that?

‘It’s a narrow view to say oh have the parent at work.’

And there’s nothing Victorian about having the choice and then deciding to be a house parent. Some people have jobs, and can’t wait for 5pm to arrive, and some have careers, and enjoy being at work. The mere fact so many choose early retirement suggests there’s more to life than work.

What works in your life might not be someone else’s choice. You really shouldn’t diss someone else’s life choices, just as they shouldn’t diss yours.

Not what I meant Brian, what I mean is paying for childcare isn't as simple as oh just have a parent at home to save the money. You still need that second person working in the main to afford the bills.

It's nothing to do with what crazy face was saying with people just having 2 working parents to chase unnecessary spending. It's to provide essential spending.

 

[KenL]

Apparently I have 21 years of full contributions thus far

31 years left in my working career until I'm 65 , but I'll have made the 30 years by then

On the other hand just checking the wife's for her she has 17 years full, 2 years missing but 33 years to make up to the 30 so should be fine

I wonder what age you'll have to be to collect the state pension by then.
I'm late 50s, currently need to be 67 and hoping they don't try and move it.

 

[PJ87]

I wonder what age you'll have to be to collect the state pension by then.
I'm late 50s, currently need to be 67 and hoping they don't try and move it.

I'd guess at least 70

I mean I get the theory if we live longer and medical science improves so we should be in theory better health then current 70 year olds

But life isn't lived on theory's

 

[Bunkermagnet]

I wonder what age you'll have to be to collect the state pension by then.
I'm late 50s, currently need to be 67 and hoping they don't try and move it.

I suspect that as the state retirement age increase, so will the minimum NI input years also increase. I can see it being pushed up to 40 yr requirement quite soon, if nothing more to save them money.

 

[harpo_72]

The two wages are required because people are chasing what the megga rich have. Plus, extra TV (we never had to pay for this), mobile phone contracts ( family of four, lord knows how much £50 per month?), car rental, instead of purchase(£250+ per month ). Child care, instead of mum at home, (we know of people paying £600+). And there's your second wage gone. Take these out, and one parent is at home.

Don’t have more than 2 mobile phones, the contracts are sim only and cover work. The boy does not have a phone ( I might ask if the vet can tag him though)
Car rental/pcp /lease .. no both cars are over 10years old and owned outright. But cars have risen in price because of loans and pcp .. get rid of those financial mechanisms and no one is buying a car as regular as they do now.
We do pay for Disney + , Netflix and Amazon prime.. but Disney + is good value when you look at 3 people out at a cinema costing £50 a pop .. plus I can pause it and use the toilet or answer the question “what happened there?”
Netflix I am a bit conflicted, we have watched several series although “one day” is about 2 utter clowns that my wife likes ..
Amazon prime, good for the delivery services but they are going start adding adverts in shows … so I may just biff them as well

So to answer you, a second wage is needed with the cost of living and increases we see in privatised services electricity gas water .. then council services as we need to pay huge wages massive pension commitments, then there is the cost of an NHS that has managed to get more well paid management in than medical staff .. although I do believe in wage capping surgeons and senior doctors, then there is paying for politicians and their expenses ( take those away they are not required) ..
the list goes on for unnecessary debts being created .. so to fill that you need a second earner. I have not even mentioned interest on some of these items either nor unrestricted profit margins

 

[PJ87]

I suspect that as the state retirement age increase, so will the minimum NI input years also increase. I can see it being pushed up to 40 yr requirement quite soon, if nothing more to save them money.

I agree. 40 year contributions seems the natural step along with moving the age to 70

 

[PJ87]

Don’t have more than 2 mobile phones, the contracts are sim only and cover work. The boy does not have a phone ( I might ask if the vet can tag him though)
Car rental/pcp /lease .. no both cars are over 10years old and owned outright. But cars have risen in price because of loans and pcp .. get rid of those financial mechanisms and no one is buying a car as regular as they do now.
We do pay for Disney + , Netflix and Amazon prime.. but Disney + is good value when you look at 3 people out at a cinema costing £50 a pop .. plus I can pause it and use the toilet or answer the question “what happened there?”
Netflix I am a bit conflicted, we have watched several series although “one day” is about 2 utter clowns that my wife likes ..
Amazon prime, good for the delivery services but they are going start adding adverts in shows … so I may just biff them as well

So to answer you, a second wage is needed with the cost of living and increases we see in privatised services electricity gas water .. then council services as we need to pay huge wages massive pension commitments, then there is the cost of an NHS that has managed to get more well paid management in than medical staff .. although I do believe in wage capping surgeons and senior doctors, then there is paying for politicians and their expenses ( take those away they are not required) ..
the list goes on for unnecessary debts being created .. so to fill that you need a second earner. I have not even mentioned interest on some of these items either nor unrestricted profit margins

As I was saying to someone the other day we could drop my wife's wages if we wanted, and cope but without savings. However I'm in a well paid job not an average job so it's an exception to the rule .

Plus the wife enjoys working with kids and she works a stones throw from the house in the daughters school so makes perfect sense

 

[Tashyboy]

I remember when my first place of work had to provide a pension for its workers. The FA came in answered a few questions kept telling everyone that 20p in every pound was contributed by the government.. so when asked what was the management fee he wasn’t so keen to answer. Turned out it was at least 7p in every deposited pound irrespective of fund performance.
So in the end you may be lucky if it’s slightly over what you put in … but the good news was you had supported someone who wasn’t being pressured to perform..
Suffice to say, I did not opt in and spent my money on my apartment which returned a 100% return after 5 years. I then moved into the wife’s house paid a chunk of her mortgage off did a new kitchen and double glazing and set about reducing that mortgage.
What is not widely stated is interest is dead money .. where possible don’t pay it. Raising interest rates was never and will never stimulate an economy, it will make a select few very wealthy- unless of cause we tax them to an inch of their lives.

This bit I have never understood and would love it explaining by someone. To control inflation we put up interest rates, that is paid for by mortgage owners and it is painful. But that money, the raising of rates goes to the banks. Why not raise tax by 0.25% and everyone pays, shares the burden. That way the money goes to the government. How does giving money to the banks help inflation

 

[PJ87]

This bit I have never understood and would love it explaining by someone. To control inflation we put up interest rates, that is paid for by mortgage owners and it is painful. But that money, the raising of rates goes to the banks. Why not raise tax by 0.25% and everyone pays, shares the burden. That way the money goes to the government. How does giving money to the banks help inflation

A very valid point..raising taxes would be quicker as people on fixes don't get affected (I've got 5 years left on a 10 year fix) and people who have paid for their homes already would then pay

However I think it would be every unpopular and then when inflation gets under control I'd trust the banks to reduce rather than government to cut tax

 

[harpo_72]

A very valid point..raising taxes would be quicker as people on fixes don't get affected (I've got 5 years left on a 10 year fix) and people who have paid for their homes already would then pay

However I think it would be every unpopular and then when inflation gets under control I'd trust the banks to reduce rather than government to cut tax

Pretty much .. any political party that raises tax will be vilified even if it’s the correct thing to do.
Currently we are blaming the banks and they are being the fall guys.. I don’t have too much of an issue with that, but taxation on high wages, bonuses, large organisational pre shareholder payout profits should be employed.
Take a look at car loans, credit card APRs .. this is just legal loan sharking, people are falling into this.
We have to have a more regulated system -1% on interest rate for accounts in credit and +1% on base for all lent money …

 

[Hobbit]

The country is in recession, and the ‘blame’ was, partly, laid at the feet of Joe Public for not spending money. But interest rates were raised to cutting borrowing and spending. Yes, it cuts back on borrowing but it hurts those who have already borrowed for their biggest expense, i.e. their mortgage. Raising interest rates hurts the poorest the most, and hurts businesses. Raising interest rates brings very little into the treasury.

Raising taxes spreads the load and doesn’t hurt businesses on anything like the same scale. And the extra taxes allows extra spending, which benefits everyone.