Can you take your 25%, keep working, and reinvest the 25% in your pension and get tax relief on it all over again?
Ive just done some research. The answer is yes, up to a very limited point, but it's a bit of a grey area with HMRC.
HMRC are paranoid people will take the 25% tax free lump sum and put it in a new pension, get a tax rebate on that and continue" re-cycling" the lump sums to milk the tax relief benefits. Intent has to be shown, so as long as it's not obvious that's what you are doing, your can reinvest your lump sum. Your duty is to certify to each pension provider you are not "recycling" the tax free lump sum.
Can you take your 25%, keep working, and reinvest the 25% in your pension and get tax relief on it all over again?
Ive just done some research. The answer is yes, up to a very limited point, but it's a bit of a grey area with HMRC.
I’m taking my state pension and investing that into my private pension, which has caused some head scratching from the tax man, works for me.
That is ok.
Should hope so, how much that bit of advice cost me
nothing. my first client appt is always free of charge.
So was mine, that’s the trouble when you own your own company, you often need IFA on many subjects, initially most of ours were on pensions, then inheritance tax and planning etc etc, so the old bills do start to mount, and once you find the right IFA for you, you stick with him, and that what we have done, hope we chose the right one, as you are never 100% certain. I’m probably wrong but I work on the theory better the devil you know. Or to put it another way, by swapping you might pick a not so good one.
Can you take your 25%, keep working, and reinvest the 25% in your pension and get tax relief on it all over again?
Ive just done some research. The answer is yes, up to a very limited point, but it's a bit of a grey area with HMRC.
HMRC are paranoid people will take the 25% tax free lump sum and put it in a new pension, get a tax rebate on that and continue" re-cycling" the lump sums to milk the tax relief benefits. Intent has to be shown, so as long as it's not obvious that's what you are doing, your can reinvest your lump sum. Your duty is to certify to each pension provider you are not "recycling" the tax free lump sum.
Re-invest my lump sum? Feck that.
40 years to build it up to then just 'reinvest' it? What for?
I'm starting by going straight to the Land Rover dealers then heading off to Heathrow and reinvesting it what it's there for.
My understanding was you can still put £4k per annum into pension after starting taking it as a flexi drawdown etc. It's not as mad as it seems as even if your not working you can get the tax relief on up to £3,600 - free money and potentially double dipping on tax relief if you reuse pension money that was already tax exempt.
When do we think the government will abolish the state pension? I see auto enrolment as the first step toward this and given the fact there are more of us and we’re living longer, technology is replacing jobs etc, I truly believe it’s not sustainable.
Retirement age going up is inevitable. Govts will keep doing it to avoid tackling structural issues in society/the economy.
Scrapping the state pension I can't see it. Don't think it will be on any governments agenda any time soon. I suspect they may bring in means testing of the state pension at some point though. Not that it would save any money as means testing it would be hugely expensive to administer.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
FWIW I firmly believe that the state pension will never be scrapped (unless there is some form if replacement /incentive) as it will be such a vote loser & all political parties believe in some form of state retirement provision.
If is true that the SPA will increase to age 70 for anyone currently under the age of 30/35 but that doesn't mean you need to work to that age, esp not if you are a manual worker etc. It is expected that the min age for taking any private or company scheme will be 10 years from your NRD (so in the above scenario at age 60 rather than at age 55 as is now). So it is entirely possible to take any pension benefits from that age & use the money to subsidise a reduction in earned income by going part time/reducing workload/changing to a less strenuous job.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
nowadays .. when you start your first job even if you have to start small .. the state can no longer be relied on to support an ever aging and growing population from 'cradle to the grave'
If you have enough to live on and want to pass something onto the kids/spouse - there are tax advantages if the assets are in a pension plan. Get advice.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
If I'd of started a pension in 1992 aged 18 how much would I of had to put in my pension pot a month to have a decent pension when I'm 65. Either self employed or my employer putting in like for like.
If I'd of started a pension in 1992 aged 18 how much would I of had to put in my pension pot a month to have a decent pension when I'm 65. Either self employed or my employer putting in like for like.
nowadays .. when you start your first job even if you have to start small .. the state can no longer be relied on to support an ever aging and growing population from 'cradle to the grave'
The State decides what it does - they can spin figures however they want. They could run a decent state pension scheme but their priorities are elsewhere - we're run by chancers. We have one of the worst state pensions in the developed world.
Although the maximum pension pot is £1million or £1.03 as stated on here. I believe that if at retirement for example your pot was £1.2 million, the tax man does nothing at that stage. He only looks at your pot when you have withdrawn £1 million. At that time any surplus is taxed. So if you have had failing investments and your £1.2 lost £200,000. Then no worries. However, if you have good investments and it's now £300,000 left after drawing £1 million, tax man comes after you.
If I'd of started a pension in 1992 aged 18 how much would I of had to put in my pension pot a month to have a decent pension when I'm 65. Either self employed or my employer putting in like for like.
20% of your salary in an ideal world.
The first final salary scheme I joined was non contributory for employees/ members but the Company paid 36% of salary and the scheme was not in deficit. It was a good 1/60th or better scheme.
I have recently transferred my Sipp to Hargreaves Lansdown and am impressed with the service so far. Platform fee starts at 0.45% and reasonable discounted rates for investment charges on top which vary from tracker funds to more specialist funds. My combined charges run at less than 0.75% pa. There is a lot of information available and tools re longevity etc.
My previous arrangement involving an Ifa was cumbersome and expensive with various additional charges taking the annual fees to over 1.5%.
I am not sure about the asset level at which an Ifa will add value. I think maybe if house and pension values exceed 1m. Others will probably disagree. But then I was in the pension business. I am not anti IFAs but for it to be worthwhile to both parties the sums involved are normally large.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
This just isn't a sustainable way for a society to organise itself!
Don’t see why not. I got a job a week after taking my a levels. Was in a pension arrangement from 19 until I retired. Contributions invested helped provide capital for industry. My first wife died at 50 and I cared for her at home for 3 years without any receipt of benefits. My brother died at 48 and without some intervention on my part his £400k pension would have been lost as his children were over 22.
Bugger that at 61 I am fitter and enjoying myself as much as any time in my life.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
Speak for yourself. When I reach 61 I would have been working for 45 years. I think thats long enough. I (hopefully) will have paid off my mortgage & have enough in my pension pot to sustain me until I get the State Pension at age 67.
I wont be old & bitter, or sit around all day getting angry. Just don't want to have think about clients, compliance, regulations, getting stuck in traffic etc etc.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
Speak for yourself. When I reach 61 I would have been working for 45 years. I think thats long enough. I (hopefully) will have paid off my mortgage & have enough in my pension pot to sustain me until I get the State Pension at age 67.
I wont be old & bitter, or sit around all day getting angry. Just don't want to have think about clients, compliance, regulations, getting stuck in traffic etc etc.
Who would you recommend contacting regarding a private pension pot?
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
I'd be interested to know how old you are.
If I was a gambling man then I'd say considerably under 60.
If you are someone in a position of power and authority to offload the stress and aggravation onto some other poor mug and also work from home much of the time then yes you probably can work indefinitely assuming of course that you don't die of something else.
On the other hand if you are just a mere working class scumbag who has to take orders then once you get to 60 or so commuting takes its toll not to mention less stamina to work all the hours needed to fulfil the unrealistic, unreasonable arbitrary deadlines many of us have to cope with.
I guess the upside for someone expressing the views you do is that someone like me in the lowly position I am in will probably drop dead before being in a position to draw the State Pension and thus save the public purse some outlay.
With two final salary pensions, I found out at 56 I could take them out with the lump sum. So at 57 that’s what I did, we had paid off the mortgage with our relocation down here. So we had the house done up, visited all countries we wanted to on holidays for three or four years before deciding that was it. We now spend time together along with our dogs on about 2/3 of my salary. We what we want to do, when we want to do it and we live quite comfortably.
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
Speak for yourself. When I reach 61 I would have been working for 45 years. I think thats long enough. I (hopefully) will have paid off my mortgage & have enough in my pension pot to sustain me until I get the State Pension at age 67.
I wont be old & bitter, or sit around all day getting angry. Just don't want to have think about clients, compliance, regulations, getting stuck in traffic etc etc.
Who would you recommend contacting regarding a private pension pot?
Although the maximum pension pot is £1million or £1.03 as stated on here. I believe that if at retirement for example your pot was £1.2 million, the tax man does nothing at that stage. He only looks at your pot when you have withdrawn £1 million. At that time any surplus is taxed. So if you have had failing investments and your £1.2 lost £200,000. Then no worries. However, if you have good investments and it's now £300,000 left after drawing £1 million, tax man comes after you.
Anybody confirm this is correct ?
My understanding is that this is correct with a few caveats. You are right in saying he only looks at your pot when you have withdrawn £1m, but the withdrawals up to that point are taxed as income ie at income tax rates. Normally 25% would be tax free which may be as an initial drawdown sum or or each tranche. The other caveat is when you hit 75. I believe it then becomes taxable at a rate of 55%. Also assume you didn't mean no worries if you lost £200,000!
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
I'd be interested to know how old you are.
If I was a gambling man then I'd say considerably under 60.
If you are someone in a position of power and authority to offload the stress and aggravation onto some other poor mug and also work from home much of the time then yes you probably can work indefinitely assuming of course that you don't die of something else.
On the other hand if you are just a mere working class scumbag who has to take orders then once you get to 60 or so commuting takes its toll not to mention less stamina to work all the hours needed to fulfil the unrealistic, unreasonable arbitrary deadlines many of us have to cope with.
I guess the upside for someone expressing the views you do is that someone like me in the lowly position I am in will probably drop dead before being in a position to draw the State Pension and thus save the public purse some outlay.
Soup de jour eh?
Sorry Len - I'm actually 64 and will start to receive my state pension (around £8000 pa) next year.
Otherwise you are right - I'm very lucky and have always worked in the software industry. But ten years ago, I was diagnosed with leukaemia. Through the miracle that is the NHS, the saints at the Marsden and an anonymous donor from Newcastle I am still alive and fit enough to jog regularly! However my company collapsed while all this was happening and I haven't really earnt much in the last ten years or been able to build up a pension pot.
So my personal position is that, just now, I don't really want to live on £8000 per year. I feel I still have more to offer! I envy my son who is starting university this year!
I realise my perspective is rather peculiar! But I see lots of people working themselves towards an early grave to repay their mortgage and build up a healthy pension etc. Then they have to retire so they at least have some time to enjoy life for a while. Maybe we could try to pace ourselves better (or at least encourage our children to!)
Just a couple of suggestions for the sort of thing that I think the government should encourage!
Deferred state pensions -take your state pension whenever you want (after 60!) but the longer you leave it the more you get.
Lifetime interest only mortgages - Available at any age to pass on to your children when you die if they want it.
Not really very controversial. And, honestly, the last thing I want is to force anyone who has already had enough of it all to keep working!
It's all very well politicians proposing to raise state pension age in stages in future. They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work? Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop. And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
Assumes you keep doing the same job all your life!
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
That's all very well if you're still reasonably young and have choices.
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work. If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies. New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Completely take your point! I would never want to take away peoples' pensions when there is no reasonable alternative.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
I'd be interested to know how old you are.
If I was a gambling man then I'd say considerably under 60.
If you are someone in a position of power and authority to offload the stress and aggravation onto some other poor mug and also work from home much of the time then yes you probably can work indefinitely assuming of course that you don't die of something else.
On the other hand if you are just a mere working class scumbag who has to take orders then once you get to 60 or so commuting takes its toll not to mention less stamina to work all the hours needed to fulfil the unrealistic, unreasonable arbitrary deadlines many of us have to cope with.
I guess the upside for someone expressing the views you do is that someone like me in the lowly position I am in will probably drop dead before being in a position to draw the State Pension and thus save the public purse some outlay.
Soup de jour eh?
Sorry Len - I'm actually 64 and will start to receive my state pension (around £8000 pa) next year.
Otherwise you are right - I'm very lucky and have always worked in the software industry. But ten years ago, I was diagnosed with leukaemia. Through the miracle that is the NHS, the saints at the Marsden and an anonymous donor from Newcastle I am still alive and fit enough to jog regularly! However my company collapsed while all this was happening and I haven't really earnt much in the last ten years or been able to build up a pension pot.
So my personal position is that, just now, I don't really want to live on £8000 per year. I feel I still have more to offer! I envy my son who is starting university this year!
I realise my perspective is rather peculiar! But I see lots of people working themselves towards an early grave to repay their mortgage and build up a healthy pension etc. Then they have to retire so they at least have some time to enjoy life for a while. Maybe we could try to pace ourselves better (or at least encourage our children to!)
Just a couple of suggestions for the sort of thing that I think the government should encourage!
Deferred state pensions -take your state pension whenever you want (after 60!) but the longer you leave it the more you get.
Lifetime interest only mortgages - Available at any age to pass on to your children when you die if they want it.
Not really very controversial. And, honestly, the last thing I want is to force anyone who has already had enough of it all to keep working!
Now you've clarified things a little we are not so far apart!
I saw your comment about healthy people working into their eighties and erroneously thought you were suggesting making it compulsory rather than advocating greater flexibility and choice which I can agree with.
I'm pleased you've made a good recovery and are fit enough to run regularly now.
Comments
HMRC are paranoid people will take the 25% tax free lump sum and put it in a new pension, get a tax rebate on that and continue" re-cycling" the lump sums to milk the tax relief benefits. Intent has to be shown, so as long as it's not obvious that's what you are doing, your can reinvest your lump sum. Your duty is to certify to each pension provider you are not "recycling" the tax free lump sum.
40 years to build it up to then just 'reinvest' it? What for?
I'm starting by going straight to the Land Rover dealers then heading off to Heathrow and reinvesting it what it's there for.
I can’t see it existing in the future
I’m 36 and I think when I checked hmrc it’s something like 68 when I can claim it. But surely that’s going to go up between now and my retirement.
Scrapping the state pension I can't see it. Don't think it will be on any governments agenda any time soon. I suspect they may bring in means testing of the state pension at some point though. Not that it would save any money as means testing it would be hugely expensive to administer.
It's all very well politicians proposing to raise state pension age in stages in future.
They are well paid, with generous secure pensions - and are able to work well into old age if they have the health to do so.
But it's hardly manual work. How do people cope with advancing state pension dates if they're having to do physically demanding or heavy work?
Most people would struggle to get through a physical hard day's work at 60, let alone nearer 70.
I know people will trot out the regular soundbites that, "people are living longer, the state pension is not sustainable", "the nation can no longer afford to pay out pensions for 20 years or more ...... and of course, it does have to be paid for and somebody has to pay, etc.
But nevertheless, not every person in their 60s has a desk job, or works in a sweet shop.
And it's an age where strength declines, and quite often, personal health too.
On CL, are there builders, landscape gardeners and heavy manual workers still able to work 8 hours a day, 5 or 6 days a week well into their 60s?
If is true that the SPA will increase to age 70 for anyone currently under the age of 30/35 but that doesn't mean you need to work to that age, esp not if you are a manual worker etc. It is expected that the min age for taking any private or company scheme will be 10 years from your NRD (so in the above scenario at age 60 rather than at age 55 as is now). So it is entirely possible to take any pension benefits from that age & use the money to subsidise a reduction in earned income by going part time/reducing workload/changing to a less strenuous job.
Most of today' teenagers will probably have to do half a dozen jobs throughout their lives as their roles become unviable because of AI or whatever.
If they do happen to be doing manual work at age 60, they will simply be expected to change and something different (probably a 'caring' role') for the next twenty years. Unfortunately there is real reason why any healthy person should abandon work altogether until they reach their eighties?
But when you're already around 60, life and wear & tear is taking its toll, then any chance of choice of alternative 'easier' work is much harder to come by. Many people of that age don't have experience in alternative work.
If you live in a city or large urban area, maybe they'll be some opportunities, but others are not so lucky.
Like it or not, many many employers are ageist in their recruitment policies.
New employment is often for low paid, menial work or part time ...... or even the love child of the Tory Party, zero-hours contracts where you frequently don't get paid at all.
How do you survive financially?
Either self employed or my employer putting in like for like.
Anybody confirm this is correct ?
I have recently transferred my Sipp to Hargreaves Lansdown and am impressed with the service so far. Platform fee starts at 0.45% and reasonable discounted rates for investment charges on top which vary from tracker funds to more specialist funds. My combined charges run at less than 0.75% pa. There is a lot of information available and tools re longevity etc.
My previous arrangement involving an Ifa was cumbersome and expensive with various additional charges taking the annual fees to over 1.5%.
I am not sure about the asset level at which an Ifa will add value. I think maybe if house and pension values exceed 1m. Others will probably disagree. But then I was in the pension business. I am not anti IFAs but for it to be worthwhile to both parties the sums involved are normally large.
I just feel that the government and society should be doing all it can to avoid 'early' retirement and create policies which at least encourage everyone to work (if they want to!) in the same way that young people and single parents etc. are encouraged.
At the moment everything seems geared to the idea that you work for around 40 years to get everything (such as mortgage) in order. Then you're supposed to sit around doing nothing for another 35 years getting angrier and angrier and worrying about who will look after you if you really do get old.
This just isn't a sustainable way for a society to organise itself!
Don’t see why not. I got a job a week after taking my a levels. Was in a pension arrangement from 19 until I retired. Contributions invested helped provide capital for industry. My first wife died at 50 and I cared for her at home for 3 years without any receipt of benefits. My brother died at 48 and without some intervention on my part his £400k pension would have been lost as his children were over 22.
Bugger that at 61 I am fitter and enjoying myself as much as any time in my life.
I wont be old & bitter, or sit around all day getting angry. Just don't want to have think about clients, compliance, regulations, getting stuck in traffic etc etc.
If I was a gambling man then I'd say considerably under 60.
If you are someone in a position of power and authority to offload the stress and aggravation onto some other poor mug and also work from home much of the time then yes you probably can work indefinitely assuming of course that you don't die of something else.
On the other hand if you are just a mere working class scumbag who has to take orders then once you get to 60 or so commuting takes its toll not to mention less stamina to work all the hours needed to fulfil the unrealistic, unreasonable arbitrary deadlines many of us have to cope with.
I guess the upside for someone expressing the views you do is that someone like me in the lowly position I am in will probably drop dead before being in a position to draw the State Pension and thus save the public purse some outlay.
Soup de jour eh?
You are right in saying he only looks at your pot when you have withdrawn £1m, but the withdrawals up to that point are taxed as income ie at income tax rates. Normally 25% would be tax free which may be as an initial drawdown sum or or each tranche. The other caveat is when you hit 75. I believe it then becomes taxable at a rate of 55%.
Also assume you didn't mean no worries if you lost £200,000!
Otherwise you are right - I'm very lucky and have always worked in the software industry. But ten years ago, I was diagnosed with leukaemia. Through the miracle that is the NHS, the saints at the Marsden and an anonymous donor from Newcastle I am still alive and fit enough to jog regularly! However my company collapsed while all this was happening and I haven't really earnt much in the last ten years or been able to build up a pension pot.
So my personal position is that, just now, I don't really want to live on £8000 per year. I feel I still have more to offer! I envy my son who is starting university this year!
I realise my perspective is rather peculiar! But I see lots of people working themselves towards an early grave to repay their mortgage and build up a healthy pension etc. Then they have to retire so they at least have some time to enjoy life for a while. Maybe we could try to pace ourselves better (or at least encourage our children to!)
Just a couple of suggestions for the sort of thing that I think the government should encourage!
Deferred state pensions -take your state pension whenever you want (after 60!) but the longer you leave it the more you get.
Lifetime interest only mortgages - Available at any age to pass on to your children when you die if they want it.
Not really very controversial. And, honestly, the last thing I want is to force anyone who has already had enough of it all to keep working!
I saw your comment about healthy people working into their eighties and erroneously thought you were suggesting making it compulsory rather than advocating greater flexibility and choice which I can agree with.
I'm pleased you've made a good recovery and are fit enough to run regularly now.