UK State Pension

mosssideblue said:
Where have you got those figures from as me and the mrs don’t earn that much but still pay tax
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It is a mixture of earned income (including pensions) and Savings. If you go over that level the tax free allowances go down. Before they started to clamp down a few years ago a couple could organise their affairs, providing the correct business structure was in place and have a total income of over £100,000 utilising available allowances without having to pay any tax
 
halfmist said:
It is a mixture of earned income (including pensions) and Savings. If you go over that level the tax free allowances go down. Before they started to clamp down a few years ago a couple could organise their affairs, providing the correct business structure was in place and have a total income of over £100,000 utilising available allowances without having to pay any tax
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Am I reading this right. It doesn’t apply to normal couples as tax threshold is 12k?
 
mosssideblue said:
Slightly off topic but are care home costs justifiable or are they ripping vulnerable people off?
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It costs a lot to run a large care home, if you factor in wages for carers, maintenance workers, cooks, laundry plus outside contractors. Then you have food costs and utility bills. A lot of homes have grants from the government, if they didn't they'd go under, that's why when they introduced the NI hike they said a lot of Homes would go to the wall. If a resident is paying £1000 a week that only covers the wage for 2 carers.
 
Dicko69 said:
That is a lot of inheritance disappearing...
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That is exactly what’s wrong with todays selfish society.
It isn’t inheritance.
It’s her money to do with as she wants, as she cannot make that decision it is our responsibility to make sure she has the best provision for her care.
If it all goes on her care,so what?
 
Elbow beards said:
It costs a lot to run a large care home, if you factor in wages for carers, maintenance workers, cooks, laundry plus outside contractors. Then you have food costs and utility bills. A lot of homes have grants from the government, if they didn't they'd go under, that's why when they introduced the NI hike they said a lot of Homes would go to the wall. If a resident is paying £1000 a week that only covers the wage for 2 carers.
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Sense at last!
 
Elbow beards said:
It costs a lot to run a large care home, if you factor in wages for carers, maintenance workers, cooks, laundry plus outside contractors. Then you have food costs and utility bills. A lot of homes have grants from the government, if they didn't they'd go under, that's why when they introduced the NI hike they said a lot of Homes would go to the wall. If a resident is paying £1000 a week that only covers the wage for 2 carers.
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Wonder how much is spent on energy bills, can the government not let them access energy at wholesale prices instead of business rates or does that already happen?
 
hampshireblue said:
Sad to hear this. You can still put £2880 into a SIPP even if she's not working. HMG then top it up with another 25%. We have just done this in the last few minutes for my Mrs.
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Is this correct? because Fidelity told me otherwise when I asked that question. The extra 25% is tax relief is it not, how can this be made available if you're not working?
 
flook said:
Is this correct? because Fidelity told me otherwise when I asked that question. The extra 25% is tax relief is it not, how can this be made available if you're not working?
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It’s true. My Mrs availed herself for years of this. She wasn’t working. I paid in on her behalf, she got tax relief added to the pension by the govt.
You can even start a pension fund for a newborn under the same rules in a junior SIPP.
 
Ok haven’t read through the thread but how much do you get a month and do you have a choice when you can start taking it.

For example you can start here when you are 62 but at a reduced monthly rate. If you wait to 70 you get a lot more. Think it increases 8% every year you do not take it.

The amount you get also depends on your life long work history/earnings..
 
Frank the Yank said:
Ok haven’t read through the thread but how much do you get a month and do you have a choice when you can start taking it.

For example you can start here when you are 62 but at a reduced monthly rate. If you wait to 70 you get a lot more. Think it increases 8% every year you do not take it.

The amount you get also depends on your life long work history/earnings..
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£221.20 a week can't draw till 66 at the moment but it's going up to 67 then 68
 
You can defer it in the U.K. and it goes up slightly but you’d be daft to.
You start to take it at 66 currently but going up in years to come.
To get a full pension you need 35 full years NI contributions. You need at least 10 years worth to get anything.
If you defer a year it takes 17 years to catch up the years pension you missed.
Gonna be around still at 83?
 
flook said:
Is this correct? because Fidelity told me otherwise when I asked that question. The extra 25% is tax relief is it not, how can this be made available if you're not working?
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It absolutely is correct. We have just put £2880 into her SIPP. It usually takes around 8 weeks for the extra £720 to appear in the SIPP. From the AJ bell website:

"Even if you have no earnings, you can still pay in up to £3,600 a year to a pension – that's £2,880 from you, with the taxman adding £720. You can do this for children too. But you need to keep an eye on the annual allowance – which is £60,000 per tax year for most people"

I think there is an upper age limit of 75 to do so however.
 
denislawsbackheel said:
You can defer it in the U.K. and it goes up slightly but you’d be daft to.
You start to take it at 66 currently but going up in years to come.
To get a full pension you need 35 full years NI contributions. You need at least 10 years worth to get anything.
If you defer a year it takes 17 years to catch up the years pension you missed.
Gonna be around still at 83?
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Thats pretty much the case with most final salary pensions as well. I looked at mine and the optimal time to take my defined benefit schemes seems to be 61 for me. If I leave it to 65 I have to live to be 89 until the cumulative total exceeds taking it at 61.
 
denislawsbackheel said:
We have PoA for a relative with dementia.
She wanted to stay at home as long as possible.
Luckily she is minted but the at home care of 10 hours a day cost £9000 a month, £108,000 a year.
On top of that were food, utility bills, heating, gardening, house maintenance, tv licence, Sky, broadband, etc..
She has just had to go into a care home.
It is costing her £5000 a month, £60,000 a year.
She is saving a fortune compared to being at home now.
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Wow!! That's ridiculous
 
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