Simplified State Pension

[Guest 1footinthegrave]

The real beef millions have is those folks working in the public sector get pensions that you could only dream about in the private sector, add in to that to be able to pack it in in their early fifties and it simply is a travesty.

 

My old man worked right up to 65 as a millwright climbing gantry cranes all day, and had just 4 years of relative poverty on the basic state pension. His job was a real job, not some pen pushing office worker working for a local authority, or university or the like, or a Copper going off early with "stress"

 

Why should the taxpayers in the private sector who have to work right up to retirement age fund these lavish final salary schemes in the public sector, or the salaries come to that.

I have a pal who took "ill health" retirement from Birmingham city council, to date he has now been receiving his ill health retirement pension almost as long than he was actually employed for. No wonder they need to bring in a bedroom tax. >:-) somebody has to pay for it all.

[Tracker]

1footinthegrave - 2013-02-18 8:25 PM

The real beef millions have is those folks working in the public sector get pensions that you could only dream about in the private sector, add in to that to be able to pack it in in their early fifties and it simply is a travesty.

.

 

On that we have total agreement - but the turkeys will never vote for our Christmas will they?

 

Thanks largely to the labour supported unions - who in turn try to keep them in power - public sector workers (many of whom do a fantastic job on meagre wages) have far too much power over what the taxpayer has to fund.

 

Thank heavens the country sees sense once in a while and votes Tory!!

 

Bring back Maggie!!

[Mel B]

1footinthegrave - 2013-02-18 7:59 PM

 

I'd be trying to make sense of how your going to manage to live currently with no salary for the next 11 years. 8-)

We've been planning and saving for many a year to be able to do just that - hubby will actually be able to get his (reduced) works pension in 5 years which will be a bonus, be even if he wasn't able to we would be okay until he was able to, and then get his state pension too. We live quite frugally (apart from buying the odd motorhome!) so our annual outgoings aren't massive - if we hadn't been able to do all this saving and planning we wouldn't have left work in the first place. :-S

[CliveH]

Mel - PM me with details of your husbands employer - because some schemes will allow you to transfer out so that you can organise your own pension without the actuarial reduction for early retirement.

 

The penalty for early retirement is usually about 5% for each year. So as well as being short of 5 years worth of contributions, which of course reduces the pension "Pot" - if you take your pension 5 years early then this already reduced "pot" produces benefits reduced by a further 25% ! 8-)

 

You would be wise to seek out all your options to make sure yo are not making a bad decision.

 

Once the decision is made it is irreversible.

 

We have a good database on occupational schemes so not a problem for us to check. The issue is that whilst the Law allows many things, some schemes are set up by the Trustees or by Statute such that the rules of the specific scheme disallow options that are allowable in Law.

 

 

[Guest 1footinthegrave]

Mel B - 2013-02-18 9:49 PM

 

1footinthegrave - 2013-02-18 7:59 PM

 

I'd be trying to make sense of how your going to manage to live currently with no salary for the next 11 years. 8-)

We've been planning and saving for many a year to be able to do just that - hubby will actually be able to get his (reduced) works pension in 5 years which will be a bonus, be even if he wasn't able to we would be okay until he was able to, and then get his state pension too. We live quite frugally (apart from buying the odd motorhome!) so our annual outgoings aren't massive - if we hadn't been able to do all this saving and planning we wouldn't have left work in the first place. :-S

 

Well on a very conservative estimate with zero salary for the next 5 years you'll need say £60.000 to see you through assuming you'll rarely leave the house, but if you do get stuck theirs always job seekers allowance,or as the Bulgarians have found out register as a Big Issue seller that entitles you to claim self employed working tax credits worth £7500 a year, no saving and planning for those folk eh :-S

[Dave225]

It can be done but you have to accept that your 'pot' of money is going to reduce as it is unlikely to produce the required income. You need to have a budget that allows for this and that there will still be enough left by the time pensions etc kick in.

 

The other thing, and speaking from experience is that the first few years are the worst economically as you seem to go through money for things you had not planned for. In our case a replacement vehicle was required unexpectedly and we did double glaze some windows as we knew we would be at home more, and in the long run it would make bills cheaper, but we still had to find the cash up front. We also took pensions early and on looking at the figures, the reduction was not so great compared with the extra time getting it, and we of course needed the money as soon as possible. We calculate that if we can live to 70 then we will have passed the crossover point to where we would have been by waiting to 65. The other thing, and again from personal experience is to separate your money into various accounts. One for home bills, one for housekeeping and if anything is left, this is in a savings account where you can get it if required. That way you can control the spending and my suggestion is to use cash at all times. If it is all in 1 account you will never know what is happening on a daily basiis. A Debit card will soon rack up without you noticing it. Cash in the pocket is obvious. Cutting up credit cards may also be a good idea. Also, look for any discounts you can get such as bus pass perhaps, although that is 60, any public facilities such as swimming pools etc. It all saves cash.

 

We have found that it took about 3 years before we 'bottomed' out on spending and started to manage, even with all the will in the world. Of course we used our new found freedom for holidays so that needs to be budgeted for. If you plan long trips away swop your energy tariff to one that does not have Standing Charges as you are paying these even when you are not at home. Yes, the usage rate is slightly higher but over the long term it is cheaper.

 

Good luck and enjoy

 

[Guest pelmetman]

How about The Open University and applying for student grants?.............as you'll never earn enough to repay it ;-)

 

I'm thinking of enrolling :D..............Not quite sure on what to study yet? :-S.......

 

Considering a thesis on............ "Rioja and its part in my downfall"................ (lol)

 

Or the mid life crisis..............and the 50 Shades effect 8-)

[Guest 1footinthegrave]

pelmetman - 2013-02-19 7:53 PM

 

How about The Open University and applying for student grants?.............as you'll never earn enough to repay it ;-)

 

I'm thinking of enrolling :D..............Not quite sure on what to study yet? :-S.......

 

Considering a thesis on............ "Rioja and its part in my downfall"................ (lol)

 

Or the mid life crisis..............and the 50 Shades effect 8-)

 

Much better to get a job at one, then get paid off with a redundancy package at 49 and just wait for the pension to kick in a bit later >:-)

[Mel B]

1footinthegrave - 2013-02-19 9:33 PM

 

pelmetman - 2013-02-19 7:53 PM

 

How about The Open University and applying for student grants?.............as you'll never earn enough to repay it ;-)

 

I'm thinking of enrolling :D..............Not quite sure on what to study yet? :-S.......

 

Considering a thesis on............ "Rioja and its part in my downfall"................ (lol)

 

Or the mid life crisis..............and the 50 Shades effect 8-)

 

Much better to get a job at one, then get paid off with a redundancy package at 49 and just wait for the pension to kick in a bit later >:-)

 

A severance amount, not a redundancy package ... I couldn't leave quickly enough!!! (lol)

[Mel B]

1footinthegrave - 2013-02-19 10:34 AM

 

Mel B - 2013-02-18 9:49 PM

 

1footinthegrave - 2013-02-18 7:59 PM

 

I'd be trying to make sense of how your going to manage to live currently with no salary for the next 11 years. 8-)

We've been planning and saving for many a year to be able to do just that - hubby will actually be able to get his (reduced) works pension in 5 years which will be a bonus, be even if he wasn't able to we would be okay until he was able to, and then get his state pension too. We live quite frugally (apart from buying the odd motorhome!) so our annual outgoings aren't massive - if we hadn't been able to do all this saving and planning we wouldn't have left work in the first place. :-S

 

Well on a very conservative estimate with zero salary for the next 5 years you'll need say £60.000 to see you through assuming you'll rarely leave the house, but if you do get stuck theirs always job seekers allowance,or as the Bulgarians have found out register as a Big Issue seller that entitles you to claim self employed working tax credits worth £7500 a year, no saving and planning for those folk eh :-S

 

We have quite a substantial amount of savings to draw upon so even spending £12,000 a year we'll have enough as it stands for 10 years at least, we also have our rental property which we can sell if needs be to top up the pot with the capital its made for us (about £20k at present) but as it's bringing in over £400 a month net presently and the mortgage is only just over £100 we're hanging on to it! That's not including our own bungalow either which at some point we will sell and downsize (or move to a cheaper area in Lincolnshire) which has always been our long term plan anyway. Of course, hubby does his bit of buying and selling too which, although not planned or relied upon, does bring in a bit of dosh too (yes we do submit a self-assessment tax return!). :-S

[Mel B]

Dave225 - thanks for the advice - good idea about the standing charges so I'll get hubby to check on that.

 

Overall though we have been planning for this for over 10 years and have tried to envisage as many eventualities as we could before we took the plunge to leave work. Hubby left 2 years before I did, so during those 2 years we just lived on my wage and still were able to save (and I wasn't on a massive wage either!). When I then left work just over a year ago we were already aware that we could manage quite happily on what we had calculated we needed and didn't miss the wages at all. Hubby has kept spreadsheets for years and years so we are well versed in what we need to live on each year - he has one covering the next few years' normal expenditure, plus contingency amounts too, so we know what to expect/what we need including holiday expenses etc. We have also made sure that we have at least one savings account, bond etc, maturing each year so that we always have some cash coming back in to the 'pot' for living on, as well as instant access ones too just in case we need to get at money urgently. We are actually looking to sell some of our vehicles as we dont' need/use them much now (a car [2010] and 2 scooters [2009], so that will put some extra money in the pot when we do) and as we changed the camper last year for a 2012 one that will do us nicely for a while, along with my little 'flying plum' Smart car! :D

[Mel B]

CliveH - 2013-02-19 9:21 AM

 

Mel - PM me with details of your husbands employer - because some schemes will allow you to transfer out so that you can organise your own pension without the actuarial reduction for early retirement.

 

The penalty for early retirement is usually about 5% for each year. So as well as being short of 5 years worth of contributions, which of course reduces the pension "Pot" - if you take your pension 5 years early then this already reduced "pot" produces benefits reduced by a further 25% ! 8-)

 

You would be wise to seek out all your options to make sure yo are not making a bad decision.

 

Once the decision is made it is irreversible.

 

We have a good database on occupational schemes so not a problem for us to check. The issue is that whilst the Law allows many things, some schemes are set up by the Trustees or by Statute such that the rules of the specific scheme disallow options that are allowable in Law.

 

Thanks Clive - I've PM'd you. I've asked for confirmation of our National Insurance contributions via the Government Gateway but it could take a few weeks to get them.

[Guest 1footinthegrave]

Sounds like you've done OK, and of course a little extra to come from Mums flat eventually she hopes to buy, or a share of the 80k . Seems odd given your earlier sentiments of her languishing in an old cold council flat you did not move her into your own rental property though, or even with you, oh well perhaps the rental would not have been so good funded from housing benefit. >:-) and charity begins at home eh,kind of makes you laugh really. ;-)

 

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

[Dave225]

1footinthegrave - 2013-02-20 4:58 PM

 

Sounds like you've done OK, and of course a little extra to come from Mums flat eventually she hopes to buy, or a share of the 80k . Seems odd given your earlier sentiments of her languishing in an old cold council flat you did not move her into your own rental property though, or even with you, oh well perhaps the rental would not have been so good funded from housing benefit. >:-) and charity begins at home eh,kind of makes you laugh really. ;-)

 

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

 

I do not feel they have been too open about things. A few numbers yes, but they can mean anything. However, like anyone else planning it, they have found they do need a decent 'pot' and if you have not got one, then I am afraid things will be a lot more difficult. There are ways of raising the 'pot', without necessairly holding up the local branch of Barclays, but it usually takes the making of choices in part of your life, and speaking personally, they may not be pleasant ones.

 

The other thing to watch is that regardless of how well you plan, there is always some b......d out there trying to take it away from you, either through legal means or otherwise.

[Dave225]

Mel B - 2013-02-20 2:18 PM

 

Dave225 - thanks for the advice - good idea about the standing charges so I'll get hubby to check on that.

 

Overall though we have been planning for this for over 10 years and have tried to envisage as many eventualities as we could before we took the plunge to leave work. Hubby left 2 years before I did, so during those 2 years we just lived on my wage and still were able to save (and I wasn't on a massive wage either!). When I then left work just over a year ago we were already aware that we could manage quite happily on what we had calculated we needed and didn't miss the wages at all. Hubby has kept spreadsheets for years and years so we are well versed in what we need to live on each year - he has one covering the next few years' normal expenditure, plus contingency amounts too, so we know what to expect/what we need including holiday expenses etc. We have also made sure that we have at least one savings account, bond etc, maturing each year so that we always have some cash coming back in to the 'pot' for living on, as well as instant access ones too just in case we need to get at money urgently. We are actually looking to sell some of our vehicles as we dont' need/use them much now (a car [2010] and 2 scooters [2009], so that will put some extra money in the pot when we do) and as we changed the camper last year for a 2012 one that will do us nicely for a while, along with my little 'flying plum' Smart car! :D

 

Sounds like you are well organised. I started my 'spreadsheets' in 1999 and have watched through the years our 'wealth' slowly but surely slipping away, but that was the plan. However, one other thing to look at is tax planning. Split the funds between you to maximise your personal allowances and use tax free schemes such as ISA's, but only as long as they give a better return than not using them. Don't be conned. There are other ways of getting income tax free, but they do have a risk involved, but i could say putting it in a bank is not really the safest these days. As you will have 'income sources' from different areas it may be wise to get an accountant to do your tax return, the cost will bear fruit in the long run, especially if the HMRC decides to investigate you, again speaking personally. Keep all documents relating to income sources for 10 years.

[Tracker]

1footinthegrave - 2013-02-20 4:58 PM

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

 

Just stick in a smiley or two and you can be as rude as you like eh - a common enough ploy on here.

 

That was a very ungracious posting Mike and it reads more like envy at Mel's good sense, good planning and good fortune than any sort of constructive posting?

[Mel B]

1footinthegrave - 2013-02-20 4:58 PM

 

Sounds like you've done OK, and of course a little extra to come from Mums flat eventually she hopes to buy, or a share of the 80k . Seems odd given your earlier sentiments of her languishing in an old cold council flat you did not move her into your own rental property though, or even with you, oh well perhaps the rental would not have been so good funded from housing benefit. >:-) and charity begins at home eh,kind of makes you laugh really. ;-)

 

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

 

You really are jealous aren't you ... either that or you are just downright nasty ... I can't decide which.

 

For info, not that I need to tell you, but I will ... Mum's not buying the flat near us now, instead she is buying her council flat and will stay in it and only get her basic state pension and have to live off the inheritance money. If she HAD bought another flat near us she would still have been entitled to draw benefits, but she won't be now, so I assume that will make you ecstaticly happy. There are 5 of us so my 'share' of her flat in due course wouldn't be massive anyway and it won't be worth £80k, more like £60k if that, but only in a good few years time.

 

As for moving her into our rental property - that's in Scunthorpe so no good for her as she wouldn't want to move there as most of her kids are over this side of the water. And as for having her move in with us - why would I want to do that? She's still very independent so I wouldn't want to take that away from her. What you fail to recall is that she, and I, didn't know this money existed until 2 months ago, and she would be more than happy if that was still the case and so would I, it has caused all sorts of 'fun and games' which we could have done without - life would be so much simpler if it didn't exist in the first place.

 

IMV there's nothing worse than someone like you who feels you can have a go at others because they have been more fortunate through choices they made over the years - you made YOUR choices (eg having kids, spending your income etc) so you'll just have to LIVE with the consequences.

 

We've made sacrifices over many years and I'm not going to let you try to make me feel guilty about us being where we are today, so if you don't like what you read take a leaf out of your own book and don't look.

 

Oh, just for good measure here's a few smilies: :-> (lol) :D :D :-D :-)

[Mel B]

Hi Dave 225

 

We intend to max our cash ISAs for the next few years so long, as you say, they make sense to avoid any tax liabilities on income in the future. I've been doing a tax return for a good few years now (since 2006) including shares, dividends, savings rental income etc, if it gets too complicated then I'll get an accountant involved, but at the moment it's not difficult to do so I'll keep doing it myself. If they do decide to investigate us I'm ready for them ... I used to be a PA so having everything organised is second nature to me!

 

The hardest part of all of this was having to use the savings for the first time to 'live' on ... having saved for so long, it wasn't easy to spend it just on day-to-day living expenses!!!!! :D

 

We still might do some property developing in the future mainly to keep us from getting bored (and I can then play with my power tools :D!) as well as bringing in a bit of dosh which would be a bonus. :-D

[Guest 1footinthegrave]

Tracker - 2013-02-20 7:21 PM

 

1footinthegrave - 2013-02-20 4:58 PM

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

 

Just stick in a smiley or two and you can be as rude as you like eh - a common enough ploy on here.

 

That was a very ungracious posting Mike and it reads more like envy at Mel's good sense, good planning and good fortune than any sort of constructive posting?

 

I simply cannot understand why anyone would want to post quite intimate details of their private life and financial details on the internet, even less on a chatterbox forum for Motor home users. I'm guessing if she really needs advice there are far better avenues open to her, where her details would be kept confidential, and yes in truth would not piss people off that really did have to work damn hard ALL of their working lives, but perhaps that's the "joy" she wants to share, if so goody for her.

 

Here is a good place to start for her if she really wants some advice..

 

https://www.moneyadviceservice.org.uk/?locale=en

[Mel B]

1footinthegrave - 2013-02-20 9:40 PM

 

Tracker - 2013-02-20 7:21 PM

 

1footinthegrave - 2013-02-20 4:58 PM

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

 

Just stick in a smiley or two and you can be as rude as you like eh - a common enough ploy on here.

 

That was a very ungracious posting Mike and it reads more like envy at Mel's good sense, good planning and good fortune than any sort of constructive posting?

 

I simply cannot understand why anyone would want to post quite intimate details of their private life and financial details on the internet, even less on a chatterbox forum for Motor home users. I'm guessing if she really needs advice there are far better avenues open to her, where her details would be kept confidential, and yes in truth would not piss people off that really did have to work damn hard ALL of their working lives, but perhaps that's the "joy" she wants to share, if so goody for her.

 

Here is a good place to start for her if she really wants some advice..

 

https://www.moneyadviceservice.org.uk/?locale=en

 

I'm still here, so who is SHE ... the cat's mother????? I don't class what I've posted as intimate details, no more than some of the things that YOU have posted on here, and what I post is up to me, not you. It is a shame you take it as me trying to piss you off - you're not that important to me to want to bother to do that - instead I would hope that others can take it as a case of, if I can do it, then so can they BUT that it has to be planned for and not done just on a whim ... there are TOO MANY people who think this sort of thing is easy, it isn't, so if it stops just one person getting into problems by not realising what it takes to get to the position we are then that is a good thing.

 

As an example, I have a cousin who decided that she wanted to live in Italy a few years ago (she's older than me), she and her husband gave up their good jobs, sold their house, bought a motorhome and went to Italy - the hadn't ever visited before, they hadn't researched it, checked how easy it would be for her hubby to get a job etc ... so 6 months later they were back in Britain a lot worse off. Had they bothered to check it out properly and planned for it, rather than doing it on a whim, they would have known it wasn't as easy as they thought it would be.

 

Oh, thanks for the link by the way. :-D

[Dave225]

1footinthegrave - 2013-02-20 9:40 PM

 

Tracker - 2013-02-20 7:21 PM

 

1footinthegrave - 2013-02-20 4:58 PM

Perhaps you should keep your private life just that, not stick it on the Internet. (?)

 

Just stick in a smiley or two and you can be as rude as you like eh - a common enough ploy on here.

 

That was a very ungracious posting Mike and it reads more like envy at Mel's good sense, good planning and good fortune than any sort of constructive posting?

 

I simply cannot understand why anyone would want to post quite intimate details of their private life and financial details on the internet, even less on a chatterbox forum for Motor home users. I'm guessing if she really needs advice there are far better avenues open to her, where her details would be kept confidential, and yes in truth would not piss people off that really did have to work damn hard ALL of their working lives, but perhaps that's the "joy" she wants to share, if so goody for her.

 

Here is a good place to start for her if she really wants some advice..

 

https://www.moneyadviceservice.org.uk/?locale=en

 

Now I agree it is not a good idea to tell everyone your business but I did not feel Mel was doing that at all. She gave some information to explain her situation but I did not see that it would really give rise to anyone understanding her finances to any extent. I have a slight feel for her set up as we have some similarities, but the truth of our individual situations is probably totally removed.

 

As for a working life some people work 40 hour weeks for 40 years, others work 80 hour weeks for 30 years. Who is working hardest and longest?? There were some Companies that gave you 1 1/2 - 2 years pension service for every year you worked overseas and there are some situations in the public sector where 'free' years are donated to you so you can retire early. Everyone has a different scenario and in my opinion, if anyone has earned the wealth they have, then they are entitled to it. I am less impressed with those that wish to live of the backs of others, and those who get pensions they have not really paid for, but I do not see that Mel is in that category at all. Sometimes if you are lucky you make an investment that pays off, and if so good luck.

[Tracker]

There are many people both on here and in real life who have amassed far more wealth than I have - some through hard work but most through sheer luck or the good fortune of being in the right place at the right time and I wish them every happiness.

 

Jealousy, envy, resentment and bitterness are such negative emotions that the only people those emotions harm are those who bear them - 'cos just between you and me - the rest of the world don't give a tuppeny fart.

 

We just smile at the good fortune of others, wish them well and get on with the dispersal of our own kid's inheritances - that we too amassed largely by good planning allied to a generous dollop of good timing and a lot of good luck!!

 

 

[Guest 1footinthegrave]

I guess the difference is if I had been a paper shuffler for some organization and managed to get out of it at around 50 with a tidy sum paid for by me in part ( and I guess "hubby" whatever his name is, that remains a mystery of course,at the same age ) I wouldn't be crowing about it all and my latest mobile phone purchase on here. So call it what you will I jealousy, envy, whatever, I simply see it as someone screwing the system to their advantage exactly as she alluded to trying to do with her elderly mothers council flat to add to her good fortune. I'm sure the feeling is mutual, but she succeeds in getting my back up with every word she types. >:-) and I'm sure I'm not alone in that either. :-| Some of us had to work hard for a living you know, but I doubt she knows the meaning of the word.

 

 

[Mel B]

1footinthegrave - 2013-02-20 10:36 PM

 

I guess the difference is if I had been a paper shuffler for some organization and managed to get out of it at around 50 with a tidy sum paid for by me in part ( and I guess "hubby" whatever his name is, that remains a mystery of course,at the same age ) I wouldn't be crowing about it all and my latest mobile phone purchase on here. So call it what you will I jealousy, envy, whatever, I simply see it as someone screwing the system to their advantage exactly as she alluded to trying to do with her elderly mothers council flat to add to her good fortune. I'm sure the feeling is mutual, but she succeeds in getting my back up with every word she types. >:-) and I'm sure I'm not alone in that either. :-| Some of us had to work hard for a living you know, but I doubt she knows the meaning of the word.

Oh dear, you'll just have to put up with it then won't you and get that big chip knocked off your shoulder as I'm not going anywhere! :-)

 

I'm not trying to screw the system at all, and neither is my Mum so you can stick that comment where the sun don't shine which appears to be where your head - and therefore your mouth - is anyway! :D As for you having a lot off about me posting about my mobile phone deal ... that's just pathetic. Are you going to have a go about Knight's mobility scooter purchase too (I'm pleased for him by the way), or anyone else who posts similar things? I bet you won't ... I can't decide whether it's because I'm female, or I was an office worker (being a PA is HARD work by the way - not that you'd understand I'm sure). I haven't taken benefits from the state like most people have - child allowance etc for starters, and I've paid for schools and such stuff which again I haven't used (no kids). Did you enjoy your job? If so, you're lucky as a lot of people don't and so do jobs simply because they need to, rather than want to.

 

Anyway, MV you are just a nasty and resentful piece of work ... you are quite welcome to stick to your extremely biased views as all it is doing is letting everyone on here see the REAL you ... if that's your intention keep it up as it's working. :->

[Guest pelmetman]

I always found that when I was sensible and planned, that's when it went t*ts up :D................hence our waste space private pensions, endowments that paid out a lot less than we were promised *-)....................But now that I'm a bone idle lay about.......I have surprised myself by how little we need B-)