Mr. Dazzle wrote: ↑Sun Apr 09, 2023 8:44 am
Obviously I can only speak for a fairly narrow demographic, but all the young new starters at work seem well clued up on this stuff. Certainly more than I was.
Doesn't mean they're necessarily saving, but at least they're choosing not to now
From a recent conversation, the challenge of paying for rent or mortgage overwhelms possibilities for saving.
But there's no harm in reminding them to try and tegularly put by a small amount early and getting it as a habit.
At least paying a mortgage is a form of saving, assuming the market doesn't completely crash. The current rental market is like burning bags of £20 notes to keep warm!
In that particular conversation, one is already renting and for the other it's imminent.
So high rent, and trying to save towards a larger deposit to reduce the mortgage required (to something possible within salary:loan limits).
Having a paid for home is the most essential thing I think. I wouldn't want to be at the mercy of landlords whatever my income. Money saved is money earned and all that...
Most of you lot are the same age/older than my parents and I'm already on my second house, have offspring etc.
I pay into a long term investment account for Baby D (think I mentioned it ^^^), we also put a chunk of inheritance from her grandparents (Mrs Ds folks) in there. Idea is for to have a lump sum available when it's really useful to her.
To be perfectly frank, I suspect that by the time my rents pass (touch wood) my mortgage will be 90% paid etc. I'll probably just buy a Ferrari with any cash they leave
Potter wrote: ↑Sun Apr 09, 2023 12:51 pm
By the time most of us die our kids will probably be into their 40's or even 50's, leaving them a house or a pot of cash then is something, but they'll already have been ravaged by the financial stresses of the next couple of very challenging decades.
And as Skub said you run the risk of any money being used up for care.
Getting them a good start, good schools, private school if you can, a house or at least a mortgage deposit asap, some sort of investment pot, good financial advice, etc, is way, way more useful than leaving them something when they're already as old and knackered as we are now.
Mine is approaching 50, mortgage free, good pension pot, and planning to retire, or at least slow down, in 5 years. No kids, two very good incomes, our house will just be a bonus. Or donated to a homeless charity.
Potter wrote: ↑Sun Apr 09, 2023 12:51 pm
By the time most of us die our kids will probably be into their 40's or even 50's, leaving them a house or a pot of cash then is something, but they'll already have been ravaged by the financial stresses of the next couple of very challenging decades.
And as Skub said you run the risk of any money being used up for care.
Getting them a good start, good schools, private school if you can, a house or at least a mortgage deposit asap, some sort of investment pot, good financial advice, etc, is way, way more useful than leaving them something when they're already as old and knackered as we are now.
Mine is approaching 50, mortgage free, good pension pot, and planning to retire, or at least slow down, in 5 years. No kids, two very good incomes, our house will just be a bonus. Or donated to a homeless charity.
From 2028 you won't be able to draw any pension until your 57 AFAIK.
Dodgy69 wrote: ↑Sun Apr 09, 2023 3:19 pm
From 2028 you won't be able to draw any pension until your 57 AFAIK.
Which is why a large chunk is in ISAs. Never trustthe gubermint.
It's logical though. If the state pension age is rising because people are living longer it makes sense to up the age at which you can get your mitts on other pensions too. (Particularly now they're trying to get early retirees back to work).
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
Dodgy69 wrote: ↑Sun Apr 09, 2023 3:19 pm
From 2028 you won't be able to draw any pension until your 57 AFAIK.
Which is why a large chunk is in ISAs. Never trustthe gubermint.
It's logical though. If the state pension age is rising because people are living longer it makes sense to up the age at which you can get your mitts on other pensions too. (Particularly now they're trying to get early retirees back to work).
But just because hospitals/care homes/medication are keeping hearts beating, doesn't mean people want to work for longer.
Which is why a large chunk is in ISAs. Never trustthe gubermint.
It's logical though. If the state pension age is rising because people are living longer it makes sense to up the age at which you can get your mitts on other pensions too. (Particularly now they're trying to get early retirees back to work).
But just because hospitals/care homes/medication are keeping hearts beating, doesn't mean people want to work for longer.
Nor do young people want to pay more to fund people who've retired early then blown their pension pot on a new car and a few holidays.
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
I see works/personal pensions differently than state pension. Through our careers we've contributed as much as we can afford, forcing employers to contribute more, we've managed it ourselves to a degree, then the Westminster bellends tell us when we can have it.
Dodgy69 wrote: ↑Sun Apr 09, 2023 5:17 pm
I see works/personal pensions differently than state pension. Through our careers we've contributed as much as we can afford, forcing employers to contribute more, we've managed it ourselves to a degree, then the Westminster bellends tell us when we can have it.
The same bellends who make the employers contribute plenty.
Dodgy69 wrote: ↑Sun Apr 09, 2023 5:17 pm
I see works/personal pensions differently than state pension. Through our careers we've contributed as much as we can afford, forcing employers to contribute more, we've managed it ourselves to a degree, then the Westminster bellends tell us when we can have it.
The same bellends who make the employers contribute plenty.
...and let you put money in tax free.
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
Potter wrote: ↑Sun Apr 09, 2023 12:51 pm
Getting them a good start, good schools, private school if you can, a house or at least a mortgage deposit asap, some sort of investment pot, good financial advice, etc, is way, way more useful than leaving them something when they're already as old and knackered as we are now.
Yup. Foal is living with us now, to save for a deposit. He has one of the [now closed] govt saving schemes which will pay good interest. He pays 'keep' but actually will get it all back (although he doesn't know) to help with his buying costs, whenever. Plus we've promised £20k to help too.
As long as the £ from our place doesn't go in care home fees, he should get a fair chunk to help towards (or whatever he wants to do with it) when we peg it.*
* Currently, the house could fund up to 10 years in a good care home.
Dodgy69 wrote: ↑Sun Apr 09, 2023 5:17 pm
I see works/personal pensions differently than state pension. Through our careers we've contributed as much as we can afford, forcing employers to contribute more, we've managed it ourselves to a degree, then the Westminster bellends tell us when we can have it.
The same bellends who make the employers contribute plenty.
...and let you put money in tax free.
Only to a limit and it’s taxed when it comes out anyway but only when they say you can take it. I’ll put enough into a personal pension to take on drawdown at £1k a month which is the personal tax allowance. Any after that is taxed so you may as well save that to an ISA and take it when you want it.
So, those that have retired how much are you finding is enough for a comfy life assuming house is paid for ? £2k a month one person or £3k for two ?
Couchy wrote: ↑Sun Apr 09, 2023 5:41 pm
Any after that is taxed so you may as well save that to an ISA and take it when you want it.
I'm sure there's some maths to be done on the different tax rates too though? So getting relief on 40% earnings vs. drawing later at 20%?
I've not actually looked that hard, the really big reason to do my employer scheme is the contribution matching. I'd have to be paying alot of tax to offset that!
Couchy wrote: ↑Sun Apr 09, 2023 5:41 pm
Any after that is taxed so you may as well save that to an ISA and take it when you want it.
I'm sure there's some maths to be done on the different tax rates too though? So getting relief on 40% earnings vs. drawing later at 20%?
I've not actually looked that hard, the really big reason to do my employer scheme is the contribution matching. I'd have to be paying alot of tax to offset that!
Yup it’s not that simple, but the tax relief is great going in but once tied up you will be taxed taking it out and it will be dictated to you when you can. Everyone is different, I know a couple who have it all in cash so they can retire when they want on their terms and should one go into care it won’t be used as there’s no record of it. Tbh I’d be nervous with that much cash so it’s not for me but there’s no one answer fits all.
The same bellends who make the employers contribute plenty.
...and let you put money in tax free.
Only to a limit and it’s taxed when it comes out anyway but only when they say you can take it. I’ll put enough into a personal pension to take on drawdown at £1k a month which is the personal tax allowance. Any after that is taxed so you may as well save that to an ISA and take it when you want it.
So, those that have retired how much are you finding is enough for a comfy life assuming house is paid for ? £2k a month one person or £3k for two ?
About 2k here for both of us. Including compulsory private health care.
Big purchases come out of pension and savings profits.
