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Post by lesleysm2 on Sept 3, 2023 19:10:13 GMT
I felt it was worth it as I had a nest egg at the end of those three years. I worked if I took it I'd be debt free by the middle of next year and still be able to save a bit then once I'd cleared all my debts the money could go in my savings account at a rough estimate by the time I did retire as planned namely round about 70 I'd have a very tidy little nest egg |
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Post by dorsetmike on Sept 3, 2023 19:19:58 GMT
It's all a gamble against your life expectancy too! I must admit to being surprised I'm still around. I think you have a way to go to catch up with me, a bit over 6 months to the big 90.As for pensions, the RAF one plus a later employer's scheme on top of the state one keep me going. |
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Post by lesleysm2 on Sept 3, 2023 19:22:54 GMT
The considerations are not just financial. Consider quality of life. Do you enjoy your job? What will you do when you retire? I really love my job sometimes it feels a bit unfair I had to wait 34 years before I got another job I loved since the last one I loved as much so I have no intention of retiring for a good few years yet all being well I never planned to completely retire even when Dave was alive I thought at some point I might get a part time number say 3-4 days a week (I could probably later on make a case where I work to do 4 days a week anyway) but what would I do with myself all day? To be really honest I suspect I'd go down the Bells every afternoon for a bit. I want at some point to do a couple of courses but they'll easily be things I can do after work or online-I do OU Openlearn courses at the moment just for the fun of it |
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Post by lesleysm2 on Sept 3, 2023 19:26:16 GMT
It's all a gamble against your life expectancy too! I must admit to being surprised I'm still around. My thought exactly if I die before I claim my pension then the government keeps me 46+ years of NI |
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Post by lesleysm2 on Sept 3, 2023 19:40:01 GMT
I've just been seriously ripped off because the saving by not paying NI is about £1600 a year
I meant if I defer my pension I save around £1600 on NI a year but lose about £8k a year in state pension then when I get to 70 say and then take my state pension I'll get around 40% more a year but I'll have lost around £40k so I'll have to live until about 90 to break even
I am going for it if all goes well then I will be able to save a nice nest egg for when I do finally retire and whilst I know interest rates on savings are not very generous right now 1% interest on something beats 100% interest on nothing and if everything goes tits up I'll at least have the money to get by on coming in
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Post by willien on Sept 3, 2023 19:40:12 GMT
The considerations are not just financial. Consider quality of life. Do you enjoy your job? What will you do when you retire? I really love my job sometimes it feels a bit unfair I had to wait 34 years before I got another job I loved since the last one I loved as much so I have no intention of retiring for a good few years yet all being well I never planned to completely retire even when Dave was alive I thought at some point I might get a part time number say 3-4 days a week (I could probably later on make a case where I work to do 4 days a week anyway) but what would I do with myself all day? To be really honest I suspect I'd go down the Bells every afternoon for a bit. I want at some point to do a couple of courses but they'll easily be things I can do after work or online-I do OU Openlearn courses at the moment just for the fun of it My last year of increasingly highly stressed employment (a bloody Bank) before I retired was 4 days a week. When you are ready socially and financially to ease out I would recommend phased retiral. |
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Post by Ivor E Tower on Sept 3, 2023 20:07:26 GMT
Deferred pension amount: www.gov.uk/deferring-state-pension/what-you-getIn simple terms it says for every 9 weeks you defer, you get an equivalent (whatever that may mean) of an extra 1% So, work an extra year and you get 6% extra, or £614 in the first year after deferring for a year, but you would have foregone £10600 in pension payments (this is ignoring the tax situation) so you'd need to be retired for quite a long time (about 17 years) to make up the shortfall. I've got about 2 1/2 years until i reach pensionable age so this is a good indicator for me too on what I should contemplate doing. Looks like the best bet is to claim the pension ASAP and if you don't need it to live on, stick it somewhere that pays a good rate of interest so that you have the "lump sum" plus interest when you do decide to retire. I don't so much have a private pension to add to the state pension as a collection of small pension pots, and I put most of them into a single "SIPP" a few years back - self-invested pension. Quite how someone like me with no idea of how/what to invest in is allowed to put my entire pension pot into a place of my choosing, I don't know. And then the fund takeas a percentage for "management" of the fund every year... pardon? It's me that decides where to put the money even if I have no idea on what is a good or bad place to invest. I think our entire pensions system needs a good overhaul, and I fear that I may never be able to afford to retire |
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Post by zx9 on Sept 3, 2023 20:27:59 GMT
..... I am going for it if all goes well then I will be able to save a nice nest egg for when I do finally retire and whilst I know interest rates on savings are not very generous right now 1% interest on something beats 100% interest on nothing and if everything goes tits up I'll at least have the money to get by on coming in Can get 1% on a current account balance with 4+ % on linked savings account very easily these days. |
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Post by lesleysm2 on Sept 3, 2023 20:33:57 GMT
So, work an extra year and you get 6% extra, or £614 in the first year after deferring for a year, but you would have foregone £10600 in pension payments Roughly what I worked out if I deferred for 5 years after allowing for not paying NI I'd have lost £40k and gained about 30% on my state pension I am reasonably sure if I stuffed even half the £40k in a savings account over 5 years I'd have a nice little bit to supplement my pension and by this time next year I'll have been debt free for a few months so that would mean I'd have more of my wages anyway so I could save more A friend is deferring but his case is a bit different he works for the local council and has done for 38 years so the longer he waits the more state pension he gets and the more of his generous council pension he gets so for him saving £135 a month on NI works and when he retires the combination of the extra state pension and the extra council pension means he won't be much worse off at 70 then he is now |
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Post by zou on Sept 3, 2023 20:34:59 GMT
As has already been mentioned, accommodation will likely be the single biggest expense post-retirement, and if renting is only likely to go up. Any decisions need to factor that in.
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Post by JohnY on Sept 3, 2023 21:03:25 GMT
It's all a gamble against your life expectancy too! I must admit to being surprised I'm still around. My thought exactly if I die before I claim my pension then the government keeps me 46+ years of NI I dropped dead in VF very shortly after retiring. Yes I know that I am repeating myself; that comes with old age. The people who saved me have cost my pension scheme and UK gov a bomb. I enjoy retirement. |
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Post by lesleysm2 on Sept 3, 2023 21:24:13 GMT
As has already been mentioned, accommodation will likely be the single biggest expense post-retirement, and if renting is only likely to go up. Any decisions need to factor that in. Registered fair rent tenant, the scheme closed ages ago but as we were already on it we were allowed to stay on it I think it's called a "grandfather clause" for some reason. My rent can only go up 3% over 2 years (okay the last time they got round that by massively upping the service charges I'm paying £15 a week for maintenance of the garden I don't have access to) but what I pay is for what I have more than reasonable for the area After Dave died when I wasn't sure if I could stay in our flat I did look at rents around here and the best I saw was nowhere near as convenient as where I live and was twice as much for a double room in a shared house To get what I have at about the same rent I'd be looking at Southend! |
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Post by willien on Sept 3, 2023 21:30:58 GMT
..... I am going for it if all goes well then I will be able to save a nice nest egg for when I do finally retire and whilst I know interest rates on savings are not very generous right now 1% interest on something beats 100% interest on nothing and if everything goes tits up I'll at least have the money to get by on coming in Can get 1% on a current account balance with 4+ % on linked savings account very easily these days. Depending on ones appetite for risk, a stocks and shares ISA (index linked funds have low charges) have a chance of doing well from sometime in the future till some time later. They have not done well lately due to Covid followed by Putain (sic). Of course the world could continue to go to hell in a handcart. Me, I am staying invested.
Non ISA investments/savings are under tax threat. Dividends tax allowance has already been reduced to £1K per annum and will go down to £500 next year. Bank interest tax allowance stands at £1,000 but with long term savings accounts giving more you do not have to have that much money to fall foul. These are hidden tax hikes on people with releatively modest savings and, certainly in the case of bank interest, are a tax on mitigation of losses to inflation not on anything which could remotely be considered profit. The changes do not hit the rich bastards partly because the allowances are for non higher rate tax payers and partly because they have serious accountants - some total bastards have even had non-dom wives.
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Post by lesleysm2 on Sept 3, 2023 21:44:15 GMT
some total bastards have even had non-dom wives.
I imagine a lot of men want non-dom wives and a lot of women want non-dom husbands But fetish scene aside didn't Phillip Green do just that- put the company in his wife's name so he didn't have to pay tax in the UK but somewhere else with a much nicer rate for billionaires? And correct me if I am wrong doesn't our prime ministers wife do (or did anyway before it became bad press) something similar? |
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Post by willien on Sept 3, 2023 22:25:46 GMT
some total bastards have even had non-dom wives.
I imagine a lot of men want non-dom wives and a lot of women want non-dom husbands But fetish scene aside didn't Phillip Green do just that- put the company in his wife's name so he didn't have to pay tax in the UK but somewhere else with a much nicer rate for billionaires? And correct me if I am wrong doesn't our prime ministers wife do (or did anyway before it became bad press) something similar? It was the king and queen of rock and roll - Little Rishi - I was thinking about. |
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