Pension stuff, how's it all looking ? HAve you prepared ?

[Yorick]

Noggers, that tax-free allowance might get taxed in France.
Be careful.

[Noggin]

I've probably oversimplified the Lifetime Allowance (LTA) but there aren't many of us that need to worry about it...me included.

I think the dependants thing depended on whether the dependant is male or female, age etc (ie life expectancy) but as I said it's only something to consider if you have identified a dependant.

Those numbers don't look too shabby considering you weren't there long. The power of compound interest over time eh?

I'm not sure if I can identify a dependant. I'd guess it would be a partner or a child? And I have neither!!

I suppose I should ask if I can add to it but not sure that would be worth it for a few years in the current climate.

Noggers, that tax-free allowance might get taxed in France.
Be careful.

Good call. I'll try and ask someone about that

[Count Steer]

I've probably oversimplified the Lifetime Allowance (LTA) but there aren't many of us that need to worry about it...me included.

I think the dependants thing depended on whether the dependant is male or female, age etc (ie life expectancy) but as I said it's only something to consider if you have identified a dependant.

Those numbers don't look too shabby considering you weren't there long. The power of compound interest over time eh?

I'm not sure if I can identify a dependant. I'd guess it would be a partner or a child? And I have neither!!

I suppose I should ask if I can add to it but not sure that would be worth it for a few years in the current climate.

Noggers, that tax-free allowance might get taxed in France.
Be careful.

Good call. I'll try and ask someone about that

You don't need to identify a dependant. I think you'll get a bigger annual sum if you don't. (Effectively it's like insuring 2 lives rather than one).

[Yorick]

I see a lot of folk moaning about the state pension, so done some sums

It's £12k a year so you'll get £240k if you live 20 years.

That's been funded I believe by N.I. contribution.

So if you've worked 40 years, you should have paid about £6k a year.

Just checked and you'd need to be on £200k a year to pay that much.

So maybe it ain't that bad really

Screenshot_20240411_203802_Samsung Internet.jpg (218.84 KiB) Viewed 335 times

[Yambo]

It's £12k a year so you'll get £240k if you live 20 years.

No, it's not.

[Taipan]

How much is the state pension in 2024?
How much state pension you receive depends on if you receive a new full state pension or old basic state pension or additional rate pension.

Old basic state pension
This applies to those people who reached state pension age before 6 April 2016.

The full basic pension is now £169.50 a week – or £8,814 a year.

New full state pension
This is for those reaching state pension age on or after 6 April 2016. It applies to men born on or after 6 April 1951 and women born on or after 6 April 1953.

The current new full state pension is £221.20 a week – or £11,502.40 a year.

[Yorick]

It's £12k a year so you'll get £240k if you live 20 years.

No, it's not.

Which bit?

[Count Steer]

If I'd been on £200k for 40 years I don't think I'd be too worried about the State Pension.

(Pretty sure I was on a bit less than that in 1984 ).

[Yambo]

It's £12k a year so you'll get £240k if you live 20 years.

No, it's not.

Which bit?

The £12k a year bit.

The state pension you receive depends on a number of things and is not a single amount like that £12k for everybody.

[Yorick]

No, it's not.

Which bit?

The £12k a year bit.

The state pension you receive depends on a number of things and is not a single amount like that £12k for everybody.

Fark me. I was using rough figures to say that we get far more out than we put in.

[Yambo]

LOL!

The state pension is made up of NI contributions and SERPs (State Earnings Related Pension) and it may well be that you'll get £12k a year if your earnings related bit is based on £200k a year (as your pretty picture suggests) for your working life but that is probably not likely. Did you earn £200k a year?

Then you have to factor in age and if you were born after April 1951 your basic pension will be £7.5k ish without SERPs but if you were born before April 1951 is lower than that. If you were opted out of SERPs for 23 years because you were in the army and they opted you out without your knowledge then the SERPs bit is going to be considerably less than some one earning the same wage over the same period and paying SERPs.

It's a fucking discriminatory mess.

[Mr. Dazzle]

I see a lot of folk moaning about the state pension, so done some sums

I think I may have mentioned before that the state pension is unsustainable

People need to either die sooner or work longer*(or everyone under 66 has to accept a lower and lower level of government services / higher taxes).

S'plain as that, them numbers don't lie.

*televised death matches, etc

[wheelnut]

I see a lot of folk moaning about the state pension, so done some sums

It's £12k a year so you'll get £240k if you live 20 years.

That's been funded I believe by N.I. contribution.

So if you've worked 40 years, you should have paid about £6k a year.

Just checked and you'd need to be on £200k a year to pay that much.

So maybe it ain't that bad really

Screenshot_20240411_203802_Samsung Internet.jpg

Firstly, NI isn’t ringfenced - it’s just part of general taxation.

Secondly, you’re ignoring compound growth. if you’re treating NI like a private pension then contributing 10% of an average salary for 40 plus years would*, I imagine, easily generate a pension pot of £250k.

If you count in employers NI conts (currently 13%) then that number will go a lot higher.

*I haven’t done the sums.

[Count Steer]

I see a lot of folk moaning about the state pension, so done some sums

I think I may have mentioned before that the state pension is unsustainable

People need to either die sooner or work longer*(or everyone under 66 has to accept a lower and lower level of government services / higher taxes).

S'plain as that, them numbers don't lie.

*televised death matches, etc

I always said it made more sense to send the old folk off to war instead of yoofs, your young working, breeding stock. Makes much more sense if your 'Old Contemptibles' are actually old and contemptible.

PS re Yambo's comment ^^^ - my pension statement is one line, wife's, having got hers earlier, is an incomprehensible mish-mash of multiple lines, none of which appear to cover the fact that she deferred it for a year. State Pension's less of a mess now than it was.

[Yambo]

I always said it made more sense to send the old folk off to war instead of yoofs, your young working, breeding stock. Makes much more sense if your 'Old Contemptibles' are actually old and contemptible.

Fuck off.

It's the job of old men to start wars and the job of young men to fight them. It was ever thus and you can't change it now.

Not that you'd want to of course as you're into the age bracket yourself for going off to fight. Let's face it, you're too old for the young man's bit so . . .

And anyway, I did my bit as a young man, there's no way you'll get me to do it again.

[weeksy]

I always said it made more sense to send the old folk off to war instead of yoofs, your young working, breeding stock. Makes much more sense if your 'Old Contemptibles' are actually old and contemptible.

Fuck off.

It's the job of old men to start wars and the job of young men to fight them. It was ever thus and you can't change it now.

Not that you'd want to of course as you're into the age bracket yourself for going off to fight. Let's face it, you're too old for the young man's bit so . . .

And anyway, I did my bit as a young man, there's no way you'll get me to do it again.

I don't think he was actually being serious fella.... Go take a stroll by the sea and calm yourself I get this is an emotive subject for you but you seem to be jumping in here feet first for no real reason.

[Potter]

If I'd been on £200k for 40 years I don't think I'd be too worried about the State Pension.

If you'd been earning that then you'd probably have cut your cloth to match it - it doesn't follow that you'd only spend some of it and save the rest.

As your salary increases then inevitably your expenditure does too because you want to raise your standard of living and I think that's the case for most people, otherwise why would you chase the higher salaries?

I'm not talking about going berserk, but the price of homes these days means mortgages in the thousands, car payments, school fees if you use private schools, nice holidays, etc. It's a lot of money for sure, but I think most people would be surprised how much you need to earn to meet the things above and save an amount big enough to see you through a long retirement.

Although a good thing is that for most UK people they have a workplace pension and as their salary increases then their contributions will as well, so their workplace pension should be very good.

[Count Steer]

If I'd been on £200k for 40 years I don't think I'd be too worried about the State Pension.

If you'd been earning that then you'd probably have cut your cloth to match it - it doesn't follow that you'd only spend some of it and save the rest.

As your salary increases then inevitably your expenditure does too because you want to raise your standard of living and I think that's the case for most people, otherwise why would you chase the higher salaries?

Everyone's different but I've always cut my cloth so there's a bit of cloth to spare. Conditioning I suppose. I still do it.

So, earning more meant spending more, yes, AND saving/investing more. So yup. The drive for more still worked. I jumped for the jelly beans too.

I was really making a point that earnings tend not to be flat and anyone on £200k today probably wasn't in 1984. I wasn't, that's for sure! But it's true, people could have earned well and spent the lot.

[Potter]

Everyone's different but I've always cut my cloth so there's a bit of cloth to spare. Conditioning I suppose. I still do it.

Yeah me too, but it's surprising how easy it is to spend the extra that you get, rather than just putting it straight into savings.

I suppose it depends on your starting point, we started off from fairly humble beginnings and the first couple of years when I got a break and started earning a bit more money was clearing any debt like car loans and stuff and I ploughed a lot into paying my house off and then saving for the one we have now that we plan to retire in, that took years on it's own.

[Mr. Dazzle]

I got into the habit of putting a slice of any pay rise into my company pension a while ago. It means I never get used to having all the extra money, my pension contributions increase from the very first bigger paycheck.

I think I'm up to about 15% voluntary contributions now.