Planning For Your Retirement?

[El Cid]

How are you planning for your retirement?

Will you be carrying on working to be able to afford more holidays?

Have you paid all your NIs over the years, maybe you have additional pensions?

I know that if I stopped working today, I would be broke for five years and then I will have a higher income than I have now, when I claim my state pension.

[Annie Bynnol]

The current State Pension for those now retiring is £185.15 per week and:

Only if you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.

Only if you have 35 years + contributions/maternity contributions.

Only if you have never worked in a nationalized industry(eg PO, BSC, NCB) civil service, local government, NHS, forces, education or similar.

There is no Pension Credit or help with rent for the vast majority of new pensioners.

 

The age you can retire is 66.

Rising to in increments to 67 if you were born after April 1960.

 

The pension is taxable as are your other pensions and investments.

By the end of this Government most Pensioners will have become income tax payers.

[Dromedary]

38 minutes ago, Annie Bynnol said:

There is no Pension Credit or help with rent for the vast majority of new pensioners.

While there may be no Pension Credit help, all pensioners can claim means tested benefits such as rent and council tax. They can also apply for an HC1 health certificate for exemption of health costs such as dental treatment and eye glasses providing they don't have savings when they claim of over £6000, they can also get a bus pass .

 

BTW my state pension of £185.15 and I pay no tax on it. It is only taxable if it is over the limit when combined with other private pensions or as you say other investments.

Edited November 23, 2022 by Dromedary
did a slinny

[El Cid]

2 hours ago, Annie Bynnol said:

 

The pension is taxable as are your other pensions and investments.

By the end of this Government most Pensioners will have become income tax payers.

Most pensioners, male ones, have worked for more than fourty years, so they will likely have bought their own house or have savings.

People may have inherited from parents or relatives.

I don't see any reason why all income isn't taxable, if you are below the taxable allowance, you don't pay any.

[Tyke02]

19 minutes ago, El Cid said:

Most pensioners, male ones, have worked for more than fourty years, so they will likely have bought their own house or have savings.

People may have inherited from parents or relatives.

I don't see any reason why all income isn't taxable, if you are below the taxable allowance, you don't pay any.

All true.  Though we are in a period of high inflation (and inflation linked state pension rises) with a frozen tax allowance.  That means that before long the inflation linked rise for state pensioners will be taxed, and hence not keep up with inflation.  Not a big problem for those with other resources to fall back on, or who can downsize their home, but not everyone is in that fortunate position for one reason or another.  

[Victor Meldrew]

3 hours ago, Annie Bynnol said:

The current State Pension for those now retiring is £185.15 per week and:

Only if you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.

Only if you have 35 years + contributions/maternity contributions.

 

The age you can retire is 66.

Rising to in increments to 67 if you were born after April 1960.

Just to be clear, if you retire before you have paid NI for 35 years you will still get a state pension - just a smaller one. It was a pleasant surprise when I recently looked at my own NI record to see that I'd earned two full years NI contributions whilst doing my 'A' Levels. 

 

Obviously you can retire before age 66 (as I have) and still be in receipt of a state pension when reaching the appropriate age but you'll need to support yourself during the intervening years.

 

 

[Anna B]

3 hours ago, Annie Bynnol said:

The current State Pension for those now retiring is £185.15 per week and:

Only if you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.

Only if you have 35 years + contributions/maternity contributions.

Only if you have never worked in a nationalized industry(eg PO, BSC, NCB) civil service, local government, NHS, forces, education or similar.

There is no Pension Credit or help with rent for the vast majority of new pensioners.

 

The age you can retire is 66.

Rising to in increments to 67 if you were born after April 1960.

 

The pension is taxable as are your other pensions and investments.

By the end of this Government most Pensioners will have become income tax payers.

Or, like me, you might have just missed out on the new rate by 2 months in spite of having worked since 16  until 63, and so be on the old rate of £135 a week, and then not able to get any top up because of a private pension which just goes to making up the shortfall...

 

Nobody will be worse off said David Cameron.... 

 

If you look at what I've lost over the next 20 years, (assuming I make it to 83,) it comes to over £40,000. 

....He lied.

Edited November 23, 2022 by Anna B

[Annie Bynnol]

8 hours ago, Victor Meldrew said:

Just to be clear, if you retire before you have paid NI for 35 years you will still get a state pension - just a smaller one. It was a pleasant surprise when I recently looked at my own NI record to see that I'd earned two full years NI contributions whilst doing my 'A' Levels. 

 

Obviously you can retire before age 66 (as I have) and still be in receipt of a state pension when reaching the appropriate age but you'll need to support yourself during the intervening years.

 

 

Those "...two full years NI contributions whilst doing my 'A' Levels could be worth more than you think".  

 

It is to do with 'Contracted In/Out' or 'Addition Pension' contributions(only applies to men man born on or after 6 April 1951 or a women born on or after 6 April 1953). 

On that issue of NI contributions, some people will have worked longer than 35 years and when they check their NI contributions may find that their 'contracted in'  years have not been counted.

 

The £185.15 only applies if all your contributions are 'contracted in'.  Those who worked directly/indirectly for the Government( PO, BSC, NCB, civil service, local government, NHS, uniform services, education or similar) will have 'contracted out' contributions and get a smaller State Pension.

 

So to those people who worked in 'contracted' out jobs with 35+ years they need to check/appeal for their 'contracted in' years (includes benefit contributions and unpaid child care time for women) to be counted first. The Government openly admits that they do not check this.

 

 

[crookesey]

We have the worst State Pension in Europe, this hasn’t just happened overnight and whilst some Labour supporters use this as a club to beat the Tories with I must ask what the Blair/Brown regimes did to help rectify this. Also our taxation system treats everyone unfairly by clicking in far too early, and folk only appear to recognise these two facts at the eleventh hour.

 

I worked in the financial services sector and will repeat now what I told many. Only pay the minimum into a company pension scheme that results in your employer paying the maximum that the scheme allows. There are better ways of saving for retirement than paying into a private scheme that limits withdrawals that are also subject to taxation. Look at Cash ISA’s that are tax free and allow you to access YOUR  money if needs must.

Edited November 24, 2022 by crookesey

[HeHasRisen]

12 hours ago, Annie Bynnol said:

The current State Pension for those now retiring is £185.15 per week and:

Only if you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.

Only if you have 35 years + contributions/maternity contributions.

Only if you have never worked in a nationalized industry(eg PO, BSC, NCB) civil service, local government, NHS, forces, education or similar.

There is no Pension Credit or help with rent for the vast majority of new pensioners.

 

The age you can retire is 66.

Rising to in increments to 67 if you were born after April 1960.

 

The pension is taxable as are your other pensions and investments.

By the end of this Government most Pensioners will have become income tax payers.

Why on earth have you included this bit in bold?  If you are claiming you wont get the full state pension if you ever worked in any of these fields, you are talking absolute codswallop.

 

Yes, people in those industries may have been "contracted out" but a) this no longer happens, b) may have been for a short period of peoples working lives and they still paid in full NI in other jobs, or c) they paid extra in.