The Benefits System

[Cooperman]

Retirement is something that has to be planned for, and in more ways than one. The financial planning part should really start as early as possible and I would encourage anyone with children or grandchildren to start getting set up now.

£300 a month into a SIPP and one of the mainstream global funds means £375 actual investment due to the tax relief. At 7% growth this ends up as £450k and a whopping £100k tax relief. We all moan at paying too much tax but here is one workaround. If £300 is not achievable then make it £100, that’s only the odd takeaway, a few Costa’s, etc across a month. The habit of this monthly contribution is as important as the value of the contribution.

 

[MajorR]

The minimum income figure for a single person is around £14k per annum.

Home - Retirement Living Standards

Home - The Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.

www.retirementlivingstandards.org.uk

 

[Smurph]

Retirement is something that has to be planned for, and in more ways than one. The financial planning part should really start as early as possible and I would encourage anyone with children or grandchildren to start getting set up now.

£300 a month into a SIPP and one of the mainstream global funds means £375 actual investment due to the tax relief. At 7% growth this ends up as £450k and a whopping £100k tax relief. We all moan at paying too much tax but here is one workaround. If £300 is not achievable then make it £100, that’s only the odd takeaway, a few Costa’s, etc across a month. The habit of this monthly contribution is as important as the value of the contribution.

It should be taught in school.

 

[Cooperman]

It should be taught in school.

The issue there is the ‘advice’ around financial planning. Teaching the concept of subjects like compound interest is fine, but handing out advice about the growth of particular stock markets wouldn’t be allowed.

 

[rockinj]

Retirement is something that has to be planned for, and in more ways than one. The financial planning part should really start as early as possible and I would encourage anyone with children or grandchildren to start getting set up now.

£300 a month into a SIPP and one of the mainstream global funds means £375 actual investment due to the tax relief. At 7% growth this ends up as £450k and a whopping £100k tax relief. We all moan at paying too much tax but here is one workaround. If £300 is not achievable then make it £100, that’s only the odd takeaway, a few Costa’s, etc across a month. The habit of this monthly contribution is as important as the value of the contribution.

This is the key point. Fundamentally if you’re looking for a comfortable retirement then you need to sacrifice in the short term for the long term.

Too many people rely on the State when they should be doing their own financial planning.

If you’re on the breadline that is different but that will mean you can claim pension credit.

The triple lock is unsustainable. But I don’t blame the politicians for avoiding the conversation but it will need to come just like a debate on nhs future.

 

[Smurph]

The issue there is the ‘advice’ around financial planning. Teaching the concept of subjects like compound interest is fine, but handing out advice about the growth of particular stock markets wouldn’t be allowed.

Rather than advice they could still go a long way in educating the younger generation about money and so on, bring financial planing to life etc....

My experiences over the years in world of contact centres, when we used to take apprenticeships groups through their inductions before taking calls, a large proportion of them had no idea what a direct debit was.

 

[Smurph]

This is the key point. Fundamentally if you’re looking for a comfortable retirement then you need to sacrifice in the short term for the long term.

Too many people rely on the State when they should be doing their own financial planning.

If you’re on the breadline that is different but that will mean you can claim pension credit.

The triple lock is unsustainable. But I don’t blame the politicians for avoiding the conversation but it will need to come just like a debate on nhs future.

Have you signed up to the new forum yet?

 

[Bullworker]

UNITED NATIONS REPORTS REPEATEDLY NAMED THE BITISH GOVERNMENT THE WORLD S WORST ABUSERS OF DISABLED PEOPLE S ROGHTS AND WE ARE FIFTH RICHEST COUNTRY IN THE WORLD.

 

[Neath_Jack]

Rather than advice they could still go a long way in educating the younger generation about money and so on, bring financial planing to life etc....

My experiences over the years in world of contact centres, when we used to take apprenticeships groups through their inductions before taking calls, a large proportion of them had no idea what a direct debit was.

I’ve said it load of times on here before, we need to be teaching about mortgages, loans, credit cards, interest rates etc. and not just one random lesson on it, properly part of the curriculum. Starting in the first year of comp, then progressively getting more detailed each year.

 

[Smurph]

I’ve said it load of times on here before, we need to be teaching about mortgages, loans, credit cards, interest rates etc. and not just one random lesson on it, properly part of the curriculum. Starting in the first year of comp, then progressively getting more detailed each year.

I'm more than happy for anyone to put me in my place who has more experience with the education system other than watching and supporting their own children going through it.

I feel it's not fit purpose.

 

[Cooperman]

I’ve said it load of times on here before, we need to be teaching about mortgages, loans, credit cards, interest rates etc. and not just one random lesson on it, properly part of the curriculum. Starting in the first year of comp, then progressively getting more detailed each year.

And it’s never too late to start learning about this.

 

[K23]

You're getting what's rightfully yours plus a hell of a lot more. There are too many OAPs and too few working people whose taxes fund the triple lock, which should be abolished.

'a hell of a lot more'? Do you have figures to back that up and are they adjusted to take into account inflation over a 40-50 year period and the potential interest that could have accrued over that same 40-50 years while the government has very kindly been looking after our £1000's of contributions? Prices since 1973 when I left Uni have risen 1,220%.

 

[Glyn1]

'a hell of a lot more'? Do you have figures to back that up and are they adjusted to take into account inflation over a 40-50 year period and the potential interest that could have accrued over that same 40-50 years while the government has very kindly been looking after our £1000's of contributions? Prices since 1973 when I left Uni have risen 1,220%.

See ThurrockJack's explanation above at 2.48 pm yesterday.

 

[K23]

That isn't really the reality. The facts are that the average pensioner will be taking more out of the systems than they ever put into it after about 9 years of drawing a pension.

This is probably flawed maths so please tell me where the massive errors are.

For convenience, if somebody works 1975-2025 = 50 years
If they retire on £50k pa, let's say their lifetime average is £25k pa = £1.25m total pay

National insurance has always been a %age, currently 8% but has been 10-12% at times and it was 9% for most of this period so let's say £1.25m @ 9% average = £112.5k paid in over 50 years

Assume pension is £12,500 pa as that is the figure being used a lot in this thread
£112.5k /£12.5 pa = 9 years so we agree on that figure.

So, this hypothetical person will have to live a minimum of 9 years after retiring to get back what they've paid in

Hopefully, most will live longer than that, but many won't. My father died at 58, my sister at 74, my wife at 54 and my best mate at 64 so none of them made the 9 years.

So, where is this huge amount more than paid in is being paid out? What am I missing?