I got a job

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Paul Barker
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#16 Re: I got a job

Post by Paul Barker »

So Greg 'cause I'm dyslexic I don't like reading stuff like that.

Does my employer match my amount or what?

What is my max? £100 as you are doing? Or is there no limit? Because I have 5k I could drip feed into that pot which I am getting no interest on. Wife permitting! :D
"Two things are infinite, the universe and human stupidity, and I am not yet completely sure about the universe." – Albert Einstein
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shane
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#17 Re: I got a job

Post by shane »

58 eh. Remember it well.
The world looks so different after learning science. For example, trees are made of air, primarily. When they are burned, they go back to air, and in their flaming heat is released the flaming heat of the Sun which was bound in to convert air into tree.
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Ali Tait
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#18 Re: I got a job

Post by Ali Tait »

Well done Paul, pleased for you. I'm still self employed, happy being so for the time being.
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Paul Barker
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#19 Re: I got a job

Post by Paul Barker »

shane wrote:58 eh. Remember it well.
You're a diamond geazer though.
"Two things are infinite, the universe and human stupidity, and I am not yet completely sure about the universe." – Albert Einstein
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#20 Re: I got a job

Post by shane »

Awww shucks :oops:
The world looks so different after learning science. For example, trees are made of air, primarily. When they are burned, they go back to air, and in their flaming heat is released the flaming heat of the Sun which was bound in to convert air into tree.
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#21 Re: I got a job

Post by jack »

Paul Barker wrote:So Greg 'cause I'm dyslexic I don't like reading stuff like that.

Does my employer match my amount or what?

What is my max? £100 as you are doing? Or is there no limit? Because I have 5k I could drip feed into that pot which I am getting no interest on. Wife permitting! :D
The whole point about it is to use taxable income because its taken pre-tax as is the employer's contribution, i.e. it's worth a lot more to you. You can put cash you hold into an ISA, but its probably not worth doing that at he moment as interest rates are so low.

Have a look at one of the online calculators, e.g. https://www.moneyadviceservice.org.uk/e ... calculator
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Paul Barker
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#22 Re: I got a job

Post by Paul Barker »

Thanks Nick I am sure you understand it but I am more at a loss than before I went to that link. It's why I fix boilers and don't write webpages or calculate tax savings investments and pensions for a living.
"Two things are infinite, the universe and human stupidity, and I am not yet completely sure about the universe." – Albert Einstein
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#23 Re: I got a job

Post by Michael L »

Paul,

I've been to some pension seminars and a lot of the information went over my head. Basically, if you are on 20% tax then every £100 you save will only cost you £80 because it comes from your gross pay i.e. before deductions. Your employer will contribute too.
Higher rate taxpayers do extremely well as every £100 saved only costs them £60 - something the Chancellor would like to address.
You could speak to someone at the Citizens Advice Bureau.
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Mike H
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#24 Re: I got a job

Post by Mike H »

Ali Tait wrote:Well done Paul, pleased for you.
Likewise! Image
 
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Greg
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#25 Re: I got a job

Post by Greg »

Hi Paul,

If your dyslexia causes you to struggle with the website, as suggested, you would be best advised through the CAB or even an independent financial advisor.

As with all government schemes, nothing is simple but to the best of my knowledge, the answers to your questions are the most you can contribute to your annual pension pot at present is £4,700 pa. This can only be deducted directly from your salary at the moment. After April 2017, you will be able to make personal contributions from other external accounts. In your current circumstances based on the information you have offered, your best option would be to make increased contributions directly from your salary and drip feed your £5000 pot into your household account to balance things up.

On signing up, your employer will be obliged to a contribution based on 1% of your earnings, rising to 2% in the second year and you should qualify for the 3% employer contribution thereafter. It doesn't sound much, but it is free money from someone else and with your own before tax contributions, is better than current savings accounts using money you have already paid 20% tax on. Obviously all the money going into the 'Nest' work placed pension scheme is invested so it should create growth towatds your final pension pot which you will then have a choice on how to realise it. I intend to take the lot as a lump sum (paying 20% tax on 75% of the total value) because I already have an occupational pension and have less than six years saving available with a target of full retirement on my 66th birthday, but your situation may be different and alternative options are available to you to aid your retirement including a much better tax break if you don't go for the lump sum and receive a regular pension income.

Another good thing about the scheme and the website I linked you to is that once your pension account is set up, you can sign in personally and look specifically at how your personal pot is growing and of course, after April 2017, make additional contributions if you wish from other accounts.

To me it seems a no brainer. As previously pointed out, £80 paid into your account in real terms will be worth £100 and probably more when you retire.

Sorry for the long post. Getting further advice from CAB or an Independent Financial Advisor would, I suggest in your circumstance, the best thing to do.

Greg
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Paul Barker
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#26 Re: I got a job

Post by Paul Barker »

Thanks Greg you put it into terms I can clearly understand.

My circumstances are state pension only and I think I retire at 67 but my sister who is a little older than me thinks our retirement age is 68. I think she's wrong.

I did some property developing, buying relics and restoring them to family homes and weather rightly or wrongly doesn't matter any more when I made a profit I paid off the loans. It was done on business loans.so I have a portfolio of three 2 bed flats with a total value of £180k in today's property slump. In Scarborough the Yield is poor. But I provide housing at fair rent.

We have always known this was for our pension pot.

So we are not without anything but state pension when we retire.

As I have some savings and my salary will be more than we need I'll contribute the max from my untaxed income. I do get that!

Thank you.
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#27 Re: I got a job

Post by Cressy Snr »

At the moment 66 is our state pension age Paul.
I had a letter from the DWP a couple of years ago stating that.
When I log into my Teachers Pension online, because it is a government scheme, the site gives my state pension age and it says 66 in there too.
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#28 Re: I got a job

Post by shane »

There's a .gov website that will tell you. All it wants is your DOB and your NI number. You can also request a full individual pension forecast which will tell you exactly what you'll get and when, and if you need to top up your contributions.
The world looks so different after learning science. For example, trees are made of air, primarily. When they are burned, they go back to air, and in their flaming heat is released the flaming heat of the Sun which was bound in to convert air into tree.
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shane
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#29 Re: I got a job

Post by shane »

'Yer tiz, as they say round here:

https://www.gov.uk/state-pension-age
The world looks so different after learning science. For example, trees are made of air, primarily. When they are burned, they go back to air, and in their flaming heat is released the flaming heat of the Sun which was bound in to convert air into tree.
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Paul Barker
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#30 Re: I got a job

Post by Paul Barker »

Thanks Shane that says I get state pension on 1st September 2023 at the age of 66. Better news than I was expecting! :D
Sadly because I live in England I don't get a bus pass until state pension age. In Scotland Wales and Northern Ireland I would have got one at 60. In Greater London I would get an over 60's Oyster Card.

Good old fashioned inequality.

Should change its name from United Kingdom.
"Two things are infinite, the universe and human stupidity, and I am not yet completely sure about the universe." – Albert Einstein
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