Retirement

[Fletch]

Triple lock is far too expensive to maintain, be a huge outcry though so governments are terrified to scrap it

I don’t think be an outcry of it simply matched inflation , which is now 3.8%, shouldn’t be going up 4.7%, just means the age will rise again , for our kids it will end up 70-75

 

[DaveH]

That’s the thing, I am happy where I am, I’ve worked in Comms/Marketing role for around twenty six years. And my role is quite varied compared to others in the team. I have many hats to wear depending on what I might be called upon to do.

In the last four weeks alone, I’ve done prep work on putting together our staff internal newsletter, prepped and sent out quarterly external stakeholder newsletter. Archived historical photographs, researched their date and history info. Helped at College/Uni fresher events advising new students on ticket options, and also attended ticket info session at DWP site in Benton as they prepare to move sites.

So aye, I was a little bit miffed at remarks about not looking at continually developing myself.

Years ago I was working at a network engineer and I loved the problem solving aspect of it. It was a time when technology was changing a lot and we were moving to be a bit more streamlined and professional about how we ran and organised individual equipment, rather than each one being ad-hoc and special. I was happy doing that for years, in the same position because I was busy and stimulated on the intellectual level.

It is all about views. I do remember on a work discussion on here about people putting in loads of extra hours to impress the boss etc. I said I was happy where I was, would get no extra money for putting in all the extra time and at the time I had no ambition to move anywhere, so I did my hours, worked hard then went home. Someone responded pretty quickly saying "ha ha, what a loser"!

Eventually I did get bored of the networking (all the streamlining and structure I implemented made it boring!), reached the age where I had my eye on retirement realised I needed more money and a change of what I was doing and that spurred me to go for different roles. To me it is all about doing what is right for you at the time and absolutely no reason why someone can't say that they like their job and want to do that, rather than say move up the pay scales into management which is a different job and always had a load of bullshit associated to it.

I don’t think be an outcry of it simply matched inflation , which is now 3.8%, shouldn’t be going up 4.7%, just means the age will rise again , for our kids it will end up 70-75

That is the way to sell it, make it no worse off and it protects the younger people from working into their 70s.

 

[Matt Hopkins]

Massive gamble that. Also theres then the administration costs of deducting tax. What happens now for those who've only got a single deferred state pension that pays a bit more?. Is it tax return or deducted at source? Expecting very elderly people who've never done one before to suddenly complete a tax return isnt going to happen either.

Apparently they get sent a 'simple' tax assessment form, so it does happen now, not sure how easy it is to do it though

 

[Swindon On Tour]

I agree with my son who is quite vocal on the "perks" he thinks Boomers got during their working lives and now in retirement while the young have been shafted with student fees, flatlining wages and high housing costs with the prospect of retiring in their 70`s. The Triple Lock should be abolished and pension should rise in line with earnings. Why should pensioners get a 5% increase when workers get none???

A very debatable subject indeed and whilst the examples the young uns give, you can provide counter arguments for sure.
Do they think we had it easy?
Recessions, high interest rates, cycling to work in all conditions, taking shit paid jobs and not calling in sick days, home study and the fact that plenty of us boomers couldn’t afford to go to university or go on holidays.
Without generalising plenty of young uns are work shy. Never head of stress and mental health either back then as you had to get on with it.

If my lads did the graft that I did I would be proud of them. I certainly never took the easy road or had parental handouts.

Not on my soap box mate or aimed at you just the other side of the coin

Now retired and they still want money

 

[JAZZMANB]

Massive gamble that. Also theres then the administration costs of deducting tax. What happens now for those who've only got a single deferred state pension that pays a bit more?. Is it tax return or deducted at source? Expecting very elderly people who've never done one before to suddenly complete a tax return isnt going to happen either.

I'd imagine a good chunk of today's pensioners have a little side one as well as their state. Miners ones etc So they should already be in the taxable area. Not much tax necessarily.

 

[DaveH]

A very debatable subject indeed and whilst the examples the young uns give, you can provide counter arguments for sure.
Do they think we had it easy?
Recessions, high interest rates, cycling to work in all conditions, taking shit paid jobs and not calling in sick days, home study and the fact that plenty of us boomers couldn’t afford to go to university or go on holidays.
Without generalising plenty of young uns are work shy. Never head of stress and mental health either back then as you had to get on with it.

If my lads did the graft that I did I would be proud of them. I certainly never took the easy road or had parental handouts.

Not on my soap box mate or aimed at you just the other side of the coin

Now retired and they still want money

University is a good point.

I went in 1995, it was free and rent was low. £41 a week in halls and £173 a month in private rentals rings a bell. I even got a small grant of a few hundred quid, as my parents were just on the earning threshold between qualify and not qualify. Back then just going to Uni, a few people said it puts me in the top 10% of my age group. Now the number of people attending is far higher and it is almost an expectation for most kids that they will go.

Going back a few years before that, a lot of university places were only open to the more wealthy families.

But high fees and wages now make a huge difference. I finished Uni with around £6k of student loans, a £1.8k overdraft and I think my credit card was maxed out at £400, so £8.2k of debt. The credit card and overdraft were cleared within 2 years and the student loan gone within 5. Now students finish on average with £53k of debt.

The change really has been free for the elite to expensive for the masses, and those born in the 70s (Gen X?) like me were probably the lucky ones in the gap between when it became more accessible but before it became expensive.

 

[42]

I'd imagine a good chunk of today's pensioners have a little side one as well as their state. Miners ones etc So they should already be in the taxable area. Not much tax necessarily.

But with them the works pension is effectively PAYE, so pension provider does the tax deductions automatically via their tax code

 

[Joe Baker]

Massive gamble that. Also theres then the administration costs of deducting tax. What happens now for those who've only got a single deferred state pension that pays a bit more?. Is it tax return or deducted at source? Expecting very elderly people who've never done one before to suddenly complete a tax return isnt going to happen either.

They send an assessment with a calculation of the tax you owe.
They know what you get in state pension, most interest is tax free and drawdown from personal pensions are taxed at source.

 

[JAZZMANB]

But with them the works pension is effectively PAYE, so pension provider does the tax deductions automatically via their tax code

Thought we were talking retired people,earning nothing but a pension . I've stopped working early, I no longer have tax deducted from the small pension I cashed in .

 

[Kobayashi]

They send an assessment with a calculation of the tax you owe.
They know what you get in state pension, most interest is tax free and drawdown from personal pensions are taxed at source.

Yes, got a call from my 80yr old mother when she got hers, worried the bailiffs would be at the door. Never been in debt in her life and HMRC tell her she owes them. Got a bit of a shock she did, "what did I do wrong?"

 

[42]

Thought we were talking retired people,earning nothing but a pension . I've stopped working early, I no longer have tax deducted from the small pension I cashed in .

I am. Im sure my dad's works pension is paid net of tax.

They send an assessment with a calculation of the tax you owe.
They know what you get in state pension, most interest is tax free and drawdown from personal pensions are taxed at source.

And that's the point im making.
Provider has your tax code & taxes you accordingly. Once state pension is higher then DWP will either need to start taxing at source for the state pension, which is extra admin costs. Or theyll need to start sending out millions of extra end of year tax bills, which is extra cost & likely to confuse & frustrat very elderly who aren't financially knowledgeable.

 

[Will e]

I am. Im sure my dad's works pension is paid net of tax.


And that's the point im making.
Provider has your tax code & taxes you accordingly. Once state pension is higher then DWP will either need to start taxing at source for the state pension, which is extra admin costs. Or theyll need to start sending out millions of extra end of year tax bills, which is extra cost & likely to confuse & frustrat very elderly who aren't financially knowledgeable.

I would think @JAZZMANB pension is below the personal allowance from what he mentions, aren't pension providers obliged by law (like employers) to deduct tax depending on you tax code?

Good point on the extra cost to the government if the state pension goes above the personal allowance.

 

[Charlestonian]

No, this one. Up 75% over 5 years. 0.13% fees. Ps I live 10 miles from derby.

You must be logged on to see external links

Any idea if I can transfer a load of old work pensions into something like this?

 

[Ned Land]

Any idea if I can transfer a load of old work pensions into something like this?

You could transfer old work pensions into a self invested pension (SIPP) then buy whichever funds are available.

BUT I am not an expert and I think that you have to take financial advice if the pension assets to be moved are over £30k.

 

[JAZZMANB]

I am. Im sure my dad's works pension is paid net of tax.

Ok ,so I'm not sure how people moving into taxable amounts is a big thing . I know you've mentioned more on this reply but everyone's already paying a bit tax . My 2 mates do self cert and I was self cert before I packed in . Just so a return each year

Good point on the extra cost to the government if the state pension goes above the personal alallowance.

For a massive chunk it will be the same amount surely ? So it will be £xxx less £xx tax as far as state pay out

 

[Iamme]

Any idea if I can transfer a load of old work pensions into something like this?

Transfer your pension in to whatever you want. If your over 55 it's your money. I retired at 50.

My works pension 120 grand will be paying my wages to myself for 10 years. Until I'm 65. Without having to touch my savings.

I pay myself 7 grand a year. And still don't use all of that. Until I'm 55 out my savings.

Last 5 months I spent 1800 quid on living.

People say you need 2500 a month to live???

What do you spend that on exactly???

 

[42]

Ok ,so I'm not sure how people moving into taxable amounts is a big thing . I know you've mentioned more on this reply but everyone's already paying a bit tax . My 2 mates do self cert and I was self cert before I packed in . Just so a return each year

For a massive chunk it will be the same amount surely ? So it will be £xxx less £xx tax as far as state pay out

Its a big thing because of who will need to do it.
You're talking about say an elderly widow who's never needed to do it before & wouldn't know what to do. Of course the DWP could just deduct at source & do it all on their behalf. But again, this is something theyve never had to do before, so their systems would all need upgrading which will im sure come at a great cost.

 

[Swindon On Tour]

University is a good point.

I went in 1995, it was free and rent was low. £41 a week in halls and £173 a month in private rentals rings a bell. I even got a small grant of a few hundred quid, as my parents were just on the earning threshold between qualify and not qualify. Back then just going to Uni, a few people said it puts me in the top 10% of my age group. Now the number of people attending is far higher and it is almost an expectation for most kids that they will go.

Going back a few years before that, a lot of university places were only open to the more wealthy families.

But high fees and wages now make a huge difference. I finished Uni with around £6k of student loans, a £1.8k overdraft and I think my credit card was maxed out at £400, so £8.2k of debt. The credit card and overdraft were cleared within 2 years and the student loan gone within 5. Now students finish on average with £53k of debt.

The change really has been free for the elite to expensive for the masses, and those born in the 70s (Gen X?) like me were probably the lucky ones in the gap between when it became more accessible but before it became expensive.

We couldn’t afford university and to be honest only when I left school I realised I was not in a good place to get on. I studied in my own time and got qualified.

The young uns might bleat but if they think it was easy it wasn’t.

 

[JAZZMANB]

Its a big thing because of who will need to do it.
You're talking about say an elderly widow who's never needed to do it before & wouldn't know what to do. Of course the DWP could just deduct at source & do it all on their behalf. But again, this is something theyve never had to do before, so their systems would all need upgrading which will im sure come at a great cost.

I think they'll just do it in house deduct at source like a payslip . It's just a calculation, no asking anyone ,they have the info already

 

[Ned Land]

We couldn’t afford university and to be honest only when I left school I realised I was not in a good place to get on. I studied in my own time and got qualified.

The young uns might bleat but if they think it was easy it wasn’t.

One of my brothers wanted to attend uni in the late 80s but our dad told him that he couldn’t afford it. My bro did study part time and ended up with an MBA.

I’d have loved to have known what my grandad could have achieved academically but he was born before WW1 in southwick so he didn’t have the opportunity. His own dad was a clever bloke who was a wear shipyard Union Secretary.