UK State Pension

[Frank the Yank]

£221.20 a week can't draw till 66 at the moment but it's going up to 67 then 68

Thanks for the info. It’s not much really. Can you still work and earn while drawing it and/ or oisctherexany penalty if you earn a certain amount?

 

[Kompany Car]

Thanks for the info. It’s not much really. Can you still work and earn while drawing it and/ or oisctherexany penalty if you earn a certain amount?

I thought that was some high brow term. No there isnt a penalty and you can still work, but with the thresholds as they are in the UK, you dont have much headroom above the tax free allowance so you start paying income tax after you earn a thousand or so more per year.

 

[halfmist]

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?

Fortunately or unfortunately depending on how you see things the Government don’t tend to get involved in micro managing businesses, as Civil Servants don’t tend to have a lot of experience in the private sector

 

[Millwallawayveteran1988]

Thanks for the info. It’s not much really. Can you still work and earn while drawing it and/ or oisctherexany penalty if you earn a certain amount?

Doesn’t sound a lot but would cost over £200,000 to buy that level of income on the open market with a 3% increase a year. With a triple lock increase (which you can’t buy) it would probably be closer to £300,000 if it was available to buy on those terms.

 

[Dicko69]

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?

It isn't selfish, I've never nor will ever get an inheritance and that doesn't bother me, my and my wife's parents never owned anything but we've worked hard and made sacrifices to buy our house and now own it outright and I personally would be absolutely gutted if I ended up in a home and the government put an attachment on the house and my kids ended up with nothing. I know the response will be "well who should pay for my care" and I don't have an answer, but it is galling to know that someone who never worked a day in their life will get theirs for free.

 

[halfmist]

No idea mate, must be a fucking lot though cos the heatings on 24 / 7 and they're fucking roasting!

And that is in the middle of summer. Guaranteed to leave with a head ache after a visit

 

[halfmist]

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?

It is reclaimed by the Pension company and put in to your pot. What a lot don’t understand and complain they are taxed when they get their pension is they have had tax relieve on it going in so the tax man wants some back when you take it out

 

[halfmist]

https://www.gov.uk/apply-tax-free-interest-on-savings#:~:text=You may also get up,rate for savings will be.

Problem is you need to have enough money in savings to earn £5k each, thats roughly £120k each at an interest rate of around 4.2%.

Very true, also add on a £40k couples annual ISA allowances and it soon amounts to a hell of a lot of interest that can be got tax free. I thought the allowance would have been an easy target in the last budget because there are not many couples with£40k spare cash each year to save.

 

[Stockton Heath Blue]

Didn’t really address my question eg is £5k month about right or ott? I simply don’t know

About right for a mid-range home. I saw some at £1,800-£1,900 per week. They were like hotels but were more geared to residential rather than dementia.
Dementia+ homes are on another scale entirely, and there is no local authority contribution as it's not classed as nursing care. The fact that a person with severe dementia can't feed, clean or medicate for themselves is as good a case for nursing as you could get IMHO.
The social care system in this country is fucked.

 

[Stockton Heath Blue]

It is reclaimed by the Pension company and put in to your pot. What a lot don’t understand and complain they are taxed when they get their pension is they have had tax relieve on it going in so the tax man wants some back when you take it out

And higher rate tax payers get relief at 40%

 

[RobMCFC]

because there are not many couples with£40k spare cash each year to save.

That's an understatement of gargantuan proportions :)

 

[halfmist]

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?

You miss a couple of very important points out. If you are a 40 or 45% tax payer you may wish to defer until you retire from your occupation or beyond. Secondly if you defer and die before you draw it your spouse can opt for a lump sum.

 

[Stockton Heath Blue]

It isn't selfish, I've never nor will ever get an inheritance and that doesn't bother me, my and my wife's parents never owned anything but we've worked hard and made sacrifices to buy our house and now own it outright and I personally would be absolutely gutted if I ended up in a home and the government put an attachment on the house and my kids ended up with nothing. I know the response will be "well who should pay for my care" and I don't have an answer, but it is galling to know that someone who never worked a day in their life will get theirs for free.

And that is the inequality in the system in a nutshell. Had exactly the same discussion with social care when doing a financial assessment.
His response "Well, you wouldn't want to live their lives" I nearly knocked the fucker out.

 

[hampshireblue]

It isn't selfish, I've never nor will ever get an inheritance and that doesn't bother me, my and my wife's parents never owned anything but we've worked hard and made sacrifices to buy our house and now own it outright and I personally would be absolutely gutted if I ended up in a home and the government put an attachment on the house and my kids ended up with nothing. I know the response will be "well who should pay for my care" and I don't have an answer, but it is galling to know that someone who never worked a day in their life will get theirs for free.

I fully understand your POV. But, you are comparing your situation with a relatively small number of people who have" never worked a day in their life". The fact remains that, and it may come to us all at some time, it should be your estate that pays at least some contribution to YOUR care. I do think however that the maximum contribution should be capped to protect people in your very situation.

 

[hampshireblue]

Doesn’t sound a lot but would cost over £200,000 to buy that level of income on the open market with a 3% increase a year. With a triple lock increase (which you can’t buy) it would probably be closer to £300,000 if it was available to buy on those terms.

So that's effectively a 5-6% return? About the same as an annuity.

 

[Stockton Heath Blue]

I fully understand your POV. But, you are comparing your situation with a relatively small number of people who have" never worked a day in their life". The fact remains that, and it may come to us all at some time, it should be your estate that pays at least some contribution to YOUR care. I do think however that the maximum contribution should be capped to protect people in your very situation.

That was the intention with the last govt - I seem to recall a lifetime cap at £86k. Our current govt have moved to remove this cap.

 

[halfmist]

And higher rate tax payers get relief at 40%

True However there are complicated rules around claiming tax relief with maximum annual allowances and I didn’t want to list them here and turn it in to a tax course

 

[halfmist]

That's an understatement of gargantuan proportions :)

It is. That is why I thought it would be significantly reduced in the last budget as it would have kept them within their pledge not to increase taxes and would no longer be seen as a perk for the wealthy.

 

[SilverFox2]

It is actually £12570. You then have a savings rate ( you don’t have to include any ISA’s) of £5000 providing you are a basic rate tax payer. So 17570 x2 = £35140.

The Spanish tax system is for pension payments only and does not include investments.

 

[Millwallawayveteran1988]

So that's effectively a 5-6% return? About the same as an annuity.

Yes about 5.5% currently single life, no guarantees.

Level income - 7.5%

Joint life (50% spouse) with 3% rise - 4.9% level - 6.9%

Non smoker rates.