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Retirement


Stepover said:
You’d only get the higher rate relief on the amount that’s above the basic rate allowance.

So if you had £55k income and made £10k gross pension contribution you’d get £5k of it at 40% and £5k of it at 20% (£50k being the threshold). In reality the pension contribution increases your basic rate band upwards.

You wouldn’t get the whole £10k at 40% because you are in the higher rate bracket.

If you can afford it, better off trying to maximise the 40% band each year.

If lucky enough to earn 6 figures - becomes a no brainer when reclaiming lost personal allowances at £100k-£125k. Effective 60% tax relief.
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If on a company pension scheme, can you make additional salary sacrifices to reduce the tax hit. I’m making what I thought was my max matching contribution and other than being able to sacrifice bonuses into pension they’ve never mentioned being able to make additional voluntary sacrifices.
 
42 said:
Mines down 4.75% but then down 3.6% from 31st July
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Doesn't sound too bad in percentage terms but it feels more painful as a cash amount.

Then again, it only wipes out the gains made since April so not quite the end of the world.
 
archiesdad said:
Just got the docs through with the option to start to take my old works pension when I turn 55 in a few mths, first time in my life I actually feel old!!
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That be me next year … although think I still be working til 57, 58 at very latest, if im working at 60
Then something went tits up 😃
Darlo1973 said:
Doesn't sound too bad in percentage terms but it feels more painful as a cash amount.

Then again, it only wipes out the gains made since April so not quite the end of the world.
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I was always told that in a proper crash could drop 20% instantly , almost always recover but seeing your “pot” drop that much must be stressful
 
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Fletch said:
I was always told that in a proper crash could drop 20% instantly , almost always recover but seeing your “pot” drop that much must be stressful
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I remember being in despair the day after the EU referendum vote and when there was the big COVID crash in Feb 2020 but in each case the value had recovered in a few months and on a long term chart are mere blips.
 
Darlo1973 said:
I remember being in despair the day after the EU referendum vote and when there was the big COVID crash in Feb 2020 but in each case the value had recovered in a few months and on a long term chart are mere blips.
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Eh? Unless your fund isnt in GBP fund values went through the roof over night due to the loss of value of the £
 
Feed the Monster said:
If on a company pension scheme, can you make additional salary sacrifices to reduce the tax hit. I’m making what I thought was my max matching contribution and other than being able to sacrifice bonuses into pension they’ve never mentioned being able to make additional voluntary sacrifices.
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That all depends on whether your company offers salary sacrifice. Some do, some don’t as they can’t be arsed with the extra admin. Ask your HR/Benefits people.
 
Darlo1973 said:
Markets around the world fell the day after

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The £ fell a lot more than the US markets meaning a global index tracker would've gained value with respect to GBP. Looking at the graphs Vanguard have, there was a big jump in value over the summer of 2016
 
42 said:
The £ fell a lot more than the US markets meaning a global index tracker would've gained value with respect to GBP. Looking at the graphs Vanguard have, there was a big jump in value over the summer of 2016
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May have been the longer term impact but that wasn't the feeling the morning after with everything plummeting.

We can even see the effect now with most of the revenue of the FTSE 100 being made overseas in dollars and then being reporting in a weaker Sterling inflates the index higher than what the underlying value is.

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42 said:
The £ fell a lot more than the US markets meaning a global index tracker would've gained value with respect to GBP. Looking at the graphs Vanguard have, there was a big jump in value over the summer of 2016
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The FTSE 100 was only down for 3 trading days after the referendum results. With so many of its constituent companies reporting their profits in dollars and euros, the fall in the pound made it inevitable.
 
Fletch said:
That be me next year … although think I still be working til 57, 58 at very latest, if im working at 60
Then something went tits up 😃

I was always told that in a proper crash could drop 20% instantly , almost always recover but seeing your “pot” drop that much must be stressful
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I’ve got one I can see all the time from an old job that I can see all the time because it’s somehow attached itself to my banking app. Around Covid it droped about 25% , it’s now back past that and more.
 
stapler said:
The FTSE 100 was only down for 3 trading days after the referendum results. With so many of its constituent companies reporting their profits in dollars and euros, the fall in the pound made it inevitable.
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From a report this April:-
“If you had invested £100 in the FTSE100 in June 2016, your investment would now be worth £118. If you had invested the same sum in the CAC40, it would be worth £198; in the Nikkei 225, it would be worth £235 and in the S&P500 index in America it would have grown to a whopping £250. Even £100 invested in Italy’s FTSE MIB would be worth £189. For those tempted to argue that the FTSE100 is too dominated by foreign firms to be an accurate barometer of sentiment towards Britain, a £100 investment in June 2016 in the FTSE250 index of medium sized companies would today be worth a paltry £114.”
 
Hair Flick said:
From a report this April:-
“If you had invested £100 in the FTSE100 in June 2016, your investment would now be worth £118. If you had invested the same sum in the CAC40, it would be worth £198; in the Nikkei 225, it would be worth £235 and in the S&P500 index in America it would have grown to a whopping £250. Even £100 invested in Italy’s FTSE MIB would be worth £189. For those tempted to argue that the FTSE100 is too dominated by foreign firms to be an accurate barometer of sentiment towards Britain, a £100 investment in June 2016 in the FTSE250 index of medium sized companies would today be worth a paltry £114.”
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Does that include dividend reinvestment as British based firms tend to be the highest dividend payers? I know that even if it did, the FTSE100 would still look bad, but not as bad.

Personally, I would only invest in a global tracker as every dog has its day, and the problem is it's impossible to predict in advance what will be the best country to invest in over the next 5 or 10 years.
 
Barista said:
Does that include dividend reinvestment as British based firms tend to be the highest dividend payers? I know that even if it did, the FTSE100 would still look bad, but not as bad.

Personally, I would only invest in a global tracker as every dog has its day, and the problem is it's impossible to predict in advance what will be the best country to invest in over the next 5 or 10 years.
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I would assume so but can’t say for sure. A lot of FTSE blue chips suspended dividends for a few years and are only beginning to reinstate them now (eg Rolls Royce) whilst others cut them drastically.
 
Hair Flick said:
From a report this April:-
“If you had invested £100 in the FTSE100 in June 2016, your investment would now be worth £118. If you had invested the same sum in the CAC40, it would be worth £198; in the Nikkei 225, it would be worth £235 and in the S&P500 index in America it would have grown to a whopping £250. Even £100 invested in Italy’s FTSE MIB would be worth £189. For those tempted to argue that the FTSE100 is too dominated by foreign firms to be an accurate barometer of sentiment towards Britain, a £100 investment in June 2016 in the FTSE250 index of medium sized companies would today be worth a paltry £114.”
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The report is wrong. It depends which days you pick in June 2016 and April 2024 of course. But the worst case for the 100 (i.e highest starting point, lowest ending point) looks to be about 6,300 -> 7,900, which is about a 25% increase. That's before dividends.

Best case is about 37% (about 5,950 -> 8,150). Plus dividends.

The FTSE 250 could be 14% if you pick the right days in June 2016 and April 2024. But it could also be over 33%. Again, that's before dividends.

It is also possible to pick pairs of days within the time periods between which each index doubled.

It is easy to pick the winners and losers when in possession of the data and able to choose arbitrary date ranges.

Very few small investors buy all their shares at once. They buy small amounts regularly.

I'm not saying one market is better than any other. But be wary of anybody claiming market wisdom based on arbitrary historical analysis, particularly when the analysis: (a) appears to be numerically incorrect and (b) doesn't reflect how people really invest.

Data from uk.investing.com
 
Hair Flick said:
From a report this April:-
“If you had invested £100 in the FTSE100 in June 2016, your investment would now be worth £118. If you had invested the same sum in the CAC40, it would be worth £198; in the Nikkei 225, it would be worth £235 and in the S&P500 index in America it would have grown to a whopping £250. Even £100 invested in Italy’s FTSE MIB would be worth £189. For those tempted to argue that the FTSE100 is too dominated by foreign firms to be an accurate barometer of sentiment towards Britain, a £100 investment in June 2016 in the FTSE250 index of medium sized companies would today be worth a paltry £114.”
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It seems Brexit crashing the pound wasn't so good after all.
 
Darlo1973 said:
I remember being in despair the day after the EU referendum vote and when there was the big COVID crash in Feb 2020 but in each case the value had recovered in a few months and on a long term chart are mere blips.
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i think will remain true until eventually capitalism comes to an end.
 
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