Just got notification of our state pensions and Mrs.L is already spending it on plants for the garden.
Nice increase this year, but then we lose 20% in tax. Yes, I know it's paid gross, but the amount is still regarded as income, so even with a small occupational pension, you get caught for tax. You just can't win.
------------- Two drifters off to see the world.
I'm tired of reality, so I'm off to look for a good fantasy.
They take the state pension out of your tax free allowance so,you pay more tax on any occupational pensions you have.
The taxman will always get their share!
------------- DS-There's more to life than football!!!
The British state pension is disgusting! One of the worst in the western world, and certainly not keeping up with the rising cost of living.
I am concerned for the younger generations if it deteriorates much more. A lot of them are stuck in the gig-economy and fake self-employment, where they won't have the benefit of company pensions, and personal pensions being more than they can afford to pay into.
An interesting idea from Martin Lewis a couple of weeks ago. Start your children paying into a personal pension scheme. A good idea perhaps, provided you can rely on the pension company.
Company pensions? As far as I am concerned, they are another scam. How many companies have gone bust and taken all the staff pension money with them? BHS comes to mind and then there was the Robert Maxwell scandal.
Quote: Originally posted by Ancient Uncle on 20/3/2023
An interesting idea from Martin Lewis a couple of weeks ago. Start your children paying into a personal pension scheme. A good idea perhaps, provided you can rely on the pension company.
Company pensions? As far as I am concerned, they are another scam. How many companies have gone bust and taken all the staff pension money with them? BHS comes to mind and then there was the Robert Maxwell scandal.
Many problems with company pension schemes, including those you mention. Starting children on a personal pension scheme is fine if they/you can afford it, but an awful lot of people now are struggling just to make ends meet.
Quote: Originally posted by Colin21 on 20/3/2023
The British state pension is disgusting! One of the worst in the western world, and certainly not keeping up with the rising cost of living.
That might be the case with the basic pension but if you have the SERP's added to the basic state pension it can more than double it depending on how many years you contributed.
Re company/occupational pensions being taxed - I hate to point it out (I cop for it!), we were NOT taxed on the amount (earnings) that we paid into our pensions at the time - so we are only being taxed when we receive those pensions now...
------------- What's the difference between a chicken?
Quote: Originally posted by Gram on 20/3/2023
Re company/occupational pensions being taxed - I hate to point it out (I cop for it!), we were NOT taxed on the amount (earnings) that we paid into our pensions at the time - so we are only being taxed when we receive those pensions now...
Good point gram, everyone seems to forget that fir some reason
I saw something from Martin Lewis last week about how important it is to check your national insurance record and, if necessary, buy some incomplete years back to make sure you get the full state pension. I didn’t even know you could check your national insurance record so I logged on, expecting mine to have holes in it like Swiss cheese as I spent a few years doing voluntary work abroad. I was pleasantly surprised to find that when I was doing voluntary work abroad, the organisation I was working with had logged me as a voluntary worker and therefore I got full national insurance years for the time I was away. I was also amazed to see that the shop I worked in as a ‘Saturday girl’ from the age of 16 while I was still at school hadn’t just handed me my wages every week in a white envelope under the counter but had done things by the book and I have 4 full years of national insurance contributions from then! I have now only got to pay NI for a few more years and I will receive a full state pension which is something I never thought I would get because of my employment history.
Quote: Originally posted by David Klyne on 20/3/2023
Quote: Originally posted by Colin21 on 20/3/2023
The British state pension is disgusting! One of the worst in the western world, and certainly not keeping up with the rising cost of living.
That might be the case with the basic pension but if you have the SERP's added to the basic state pension it can more than double it depending on how many years you contributed.
David
Yes, I get an enhanced state pension because of this
The thing which makes my blood boil is the 2 levels of pension. I am 15 months older than my husband and am on the "old" rate. He gets the "new" one and is over £20 per week better off. We both have the same NI contributions. The Government have no intention of bringing us up to one single pension rate - they are just waiting for us to die off!
------------- Freedom is a light caravan and an open road.
The opposite with me.. I'm on the old scheme while Mrs.L is on the new one and gets more than I do - with less years working, but with years bringing up the children, counted as contributions.
As for SERPS, I and many others spent most of our working lives "contracted out", but because of the "Guaranteed minimum pension" scheme, I get additional pension either from the government or my formal employer to compensate for any shortfall.
Anyway, SERPS is now a thing of the past.
Yes, I do understand taxation, but I still resent it. Meanwhile, the French are rioting because they may have to retire four years EARLIER than us.
------------- Two drifters off to see the world.
I'm tired of reality, so I'm off to look for a good fantasy.
Both of us are on the old rate and neither of us get SERPS. I have always been contracted out. I do get a small company pension but it is peanuts as I wasn't with the company long enough. I didn't start until I was late 30s and was made redundant at 51. My wife is currently looking into the years she spent at home bringing up our children though. We are of the generation for whom that was the right thing to do, and there was no work for her in our village then anyway. She doesn't drive and there was no bus service.
There will be no pension at all in a few years. The current bunch of school leavers will probably not have a retirement age at all, yet you can be sure their tax burden won't decrease. Lots of reasons for this, of course, an
ageing population for a start, and many other causes but this isnt a political forum so we'll stop there !! :-)
Gone are the days you worked til you retire then basically drop dead with exhaustion, nowadays you work til you retire then go camping!!!
In the generation before mine most people started a job when they left school, worked their way up, then retired from that same company with a company pension. Increasingly these days people change jobs several times during their working lives as indeed I did. Company pensions are becoming less relevant or even non-existent. Without a decent state pension many of today's young people will really struggle in their later lives.
Quote: Originally posted by Colin21 on 21/3/2023
Both of us are on the old rate and neither of us get SERPS. I have always been contracted out. I do get a small company pension but it is peanuts as I wasn't with the company long enough. I didn't start until I was late 30s and was made redundant at 51. My wife is currently looking into the years she spent at home bringing up our children though. We are of the generation for whom that was the right thing to do, and there was no work for her in our village then anyway. She doesn't drive and there was no bus service.
Colin, this is all explained quite nicely on the web. As I read it... It depends on when your wife retired, but it would seem that she may be entitled to claim for the years she was looking after a child under 16. Child benefit must have been in her name and she was not apply paying a reduced stamp while at home.
It's certainly worth looking into.
------------- Two drifters off to see the world.
I'm tired of reality, so I'm off to look for a good fantasy.
Amazing family weekend with old steam engines, classic car displays, market stalls, and full catering and bar. And camping on site - Save £25 by booking in advance.
Topic: State pension
via mobile 20/3/2023 at 10:25am
