Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: STEMO on 28 June 2017, 17:42:29
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I rang up on Monday to claim mine for this year, I wasn't sure about the timescale but I am old enough. Got through to a young chap in Newcastle, and I've never been treated like this on the phone before. He spoke really s l o w l y and repeated every answer back to me. Asked me if I had any idea what my national insurance number was...erm...yes..I have. Then, towards the end...are you married? Yes. And can you remember the date you got married? I was waiting for him to say 'take your time'.
I got right into it and the end and said 'Thanks for being so kind, son' and he was chuffed. ;D
Now....how can I convince the wife that I'm old and infirm so she doesn't make me do.....'things'. ::)
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Mind you don't "have a fall" when you go out - make sure that nursey is with you. ::)
Ron.
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Mind you don't "have a fall" when you go out - make sure that nursey is with you. ::)
Ron.
After I'd finished speaking with him, Ron, I went for a quick three mile walk with the dog. ;D
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You should phone up Arlene and thank her for her efforts in making sure that wealthy old codgers like you continue to get it! :y
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You should phone up Arlene and thank her for her efforts in making sure that wealthy old codgers like you continue to get it! :y
I'm not wealthy, Sir Tig, I haven't got a pot to piss in :'(
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You should phone up Arlene and thank her for her efforts in making sure that wealthy old codgers like you continue to get it! :y
I'm not wealthy, Sir Tig, I haven't got a pot to piss in :'(
Ah shame. Maybe Lord Opti will lend you a few quid? :)
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The £200 I get will buy me some fuel and a pair of thermal long johns. In Barnsley, we put them on in November and take them off again in April.
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You should phone up Arlene and thank her for her efforts in making sure that wealthy old codgers like you continue to get it! :y
I'm not wealthy, Sir Tig, I haven't got a pot to piss in :'(
Ah shame. Maybe Lord Opti will lend you a few quid? :)
He has a jag to run, and an account with pc world to maintain. ;D
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You should phone up Arlene and thank her for her efforts in making sure that wealthy old codgers like you continue to get it! :y
I'm not wealthy, Sir Tig, I haven't got a pot to piss in :'(
Ah shame. Maybe Lord Opti will lend you a few quid? :)
He has a jag to run, and an account with pc world to maintain. ;D
Ah yes I forgot, he hasn't got a pot to piss in either! ;D
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You should phone up Arlene and thank her for her efforts in making sure that wealthy old codgers like you continue to get it! :y
I'm not wealthy, Sir Tig, I haven't got a pot to piss in :'(
Ahem, at your age and degree of incontinence, do you really need a pot?
Ron. (Sorry!)
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If the public pay sector cap is 'softened' we may be able to afford a proper toilet, Ron.
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If the public pay sector cap is 'softened' we may be able to afford a proper toilet, Ron.
There's been talk of tax increases today from my MP Oliver Letwin. :)
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Hes already trying to lose the next election then ! ::) ;D
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Unless there's another election imminently I don't think he'll be standing again, so I guess he can say what he wants! ;D
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If the public pay sector cap is 'softened' we may be able to afford a proper toilet, Ron.
There's been talk of tax increases today from my MP Oliver Letwin. :)
Oliver who? That silly little twerp pops his head up now and again, but is usually slapped down and then sulks for a couple of years.
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There was one conservative candidate, can't recall who, who was quite moved by a teacher telling him about the financial struggle it was for her. A few back benchers with a conscience would make Oliver whatsisname run and hide.
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I rang up on Monday to claim mine for this year,
Claim ? I get it and I've never claimed, it just turns up in my bank account. They just go by your NI number.
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Winter fuel allowance? What is that. There was a time when I looked forward to getting mine for use here in Spain. This lot scuppered that. Ba££ards. Came up with some average temp formula for Spain including its overseas territoriesand decided it was too hot.
Hammond, May or forum members are welcome to come and stay with us in winter. They of course will be on fire duty . Sawing logs, hauling and cleaning next day. Minus 14 C is the lowest we have seen.
Still I dare say no sympathy despite having paid in for years. Next it will be state pension frozen for temerity of having left the sceptred isles.
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I rang up on Monday to claim mine for this year,
Claim ? I get it and I've never claimed, it just turns up in my bank account. They just go by your NI number.
He said that, if I hadn't rung up, I would have got an 'invitation to claim' letter in the post. Same with the state pension, you have to claim it.
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I rang up on Monday to claim mine for this year,
Claim ? I get it and I've never claimed, it just turns up in my bank account. They just go by your NI number.
He said that, if I hadn't rung up, I would have got an 'invitation to claim' letter in the post. Same with the state pension, you have to claim it.
Ah well ok, but I just got it. I did have to claim pension.
I've made a personal request to Mr Corbyn. If he adds a couple of zeros to my Winter fuel allowance and to my pension, I'll vote for him. He said "Yes Rog no problem, power to the people, I'll just grow some more money trees."
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I rang up on Monday to claim mine for this year,
Claim ? I get it and I've never claimed, it just turns up in my bank account. They just go by your NI number.
He said that, if I hadn't rung up, I would have got an 'invitation to claim' letter in the post. Same with the state pension, you have to claim it.
Ah well ok, but I just got it. I did have to claim pension.
I've made a personal request to Mr Corbyn. If he adds a couple of zeros to my Winter fuel allowance and to my pension, I'll vote for him. He said "Yes Rog no problem, power to the people, I'll just grow some more money trees."
If you get your pension, you'll get you WFP automatically, but it can be claimed at age 64, a year earlier (at present pensionable age). Apparently, it's because women get their state pension at that age now, and we can't have any discrimination, can we?
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Winter fuel allowance.. whatever next.
Buy another jumper, you old scroungers! :P
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Winter fuel allowance.. whatever next.
Buy another jumper, you old scroungers! :P
Scrounger? Me? I'LL HAVE YOU KNOW THAT I'M ENTITLED! I've paid my dues, and fought in six wars, and.....things. ;D
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;D ;D
Your daily battle with your bowels doesn't count as a war, you know..
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;D ;D
Your daily battle with your bowels doesn't count as a war, you know..
YOU DONT KNOW MAN!
YOU WERENT THERE!!!
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I rang up on Monday to claim mine for this year, I wasn't sure about the timescale but I am old enough. Got through to a young chap in Newcastle, and I've never been treated like this on the phone before. He spoke really s l o w l y and repeated every answer back to me. Asked me if I had any idea what my national insurance number was...erm...yes..I have. Then, towards the end...are you married? Yes. And can you remember the date you got married? I was waiting for him to say 'take your time'.
I got right into it and the end and said 'Thanks for being so kind, son' and he was chuffed. ;D
Now....how can I convince the wife that I'm old and infirm so she doesn't make me do.....'things'. ::)
It's a pity Mother Theresa won't be able to push through her plans to stop wealthy coffin dodgers claiming WFA, free prescriptions, free eye tests, free TV licence, free bus pass, that they don't need.
'Need' being the operative word. Poor people regardless of age should should benefit not wealthy old farts many of which f*cked off to Spain years ago because they don't like the climate.
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The £200 I get will buy me some fuel and a pair of thermal long johns. In Barnsley, we put them on in November and never take them off again.
Changed for accuracy.
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I rang up on Monday to claim mine for this year, I wasn't sure about the timescale but I am old enough. Got through to a young chap in Newcastle, and I've never been treated like this on the phone before. He spoke really s l o w l y and repeated every answer back to me. Asked me if I had any idea what my national insurance number was...erm...yes..I have. Then, towards the end...are you married? Yes. And can you remember the date you got married? I was waiting for him to say 'take your time'.
I got right into it and the end and said 'Thanks for being so kind, son' and he was chuffed. ;D
Now....how can I convince the wife that I'm old and infirm so she doesn't make me do.....'things'. ::)
It's a pity Mother Theresa won't be able to push through her plans to stop wealthy coffin dodgers claiming WFA, free prescriptions, free eye tests, free TV licence, free bus pass, that they don't need.
'Need' being the operative word. Poor people regardless of age should should benefit not wealthy old farts many of which f*cked off to Spain years ago because they don't like the climate.
Nice place down the road from us for 70,000 euros. You could use it as another weekend bolt hole. We could come round in the winter to keep warm ;D ;D
Funny thing how poor British pensioners are and many needing top up benefits. There again the British state pension is the worst in Europe despite Britain being the fifth wealthiest country on the planet. Go figure...
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I firmly believe that all benefits should be means tested. The lack of this system is what has allowed the welfare state to become a tool for politicians to buy peoples votes with other peoples money, instead of giving enough help to those who genuinely need it.
The fact you've move to Spain shouldn't come into it imo. If you lived, worked and paid taxes here for most of your life, then you should still be entitled to help if you need it.
On the other hand, someone who moved to the UK a few years ago claiming benefits for their kids who have never lived here is ludicrous .
I believe this is going to be allowed to continue post Brexit, for some unfathomable reason.
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I rang up on Monday to claim mine for this year, I wasn't sure about the timescale but I am old enough. Got through to a young chap in Newcastle, and I've never been treated like this on the phone before. He spoke really s l o w l y and repeated every answer back to me. Asked me if I had any idea what my national insurance number was...erm...yes..I have. Then, towards the end...are you married? Yes. And can you remember the date you got married? I was waiting for him to say 'take your time'.
I got right into it and the end and said 'Thanks for being so kind, son' and he was chuffed. ;D
Now....how can I convince the wife that I'm old and infirm so she doesn't make me do.....'things'. ::)
It's a pity Mother Theresa won't be able to push through her plans to stop wealthy coffin dodgers claiming WFA, free prescriptions, free eye tests, free TV licence, free bus pass, that they don't need.
'Need' being the operative word. Poor people regardless of age should should benefit not wealthy old farts many of which f*cked off to Spain years ago because they don't like the climate.
Nice place down the road from us for 70,000 euros. You could use it as another weekend bolt hole. We could come round in the winter to keep warm ;D ;D
Funny thing how poor British pensioners are and many needing top up benefits. There again the British state pension is the worst in Europe despite Britain being the fifth wealthiest country on the planet. Go figure...
I believe that Bulgaria is on the up......and more importantly cheap. :) I quite like the idea of my own donkey to get around. :)
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If you get winter fuel payment at 64 will I qualify this year as I'll hit that age this October?How I got this old is a total mystery to me :o ;D ;D
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If you get winter fuel payment at 64 will I qualify this year as I'll hit that age this October?How I got this old is a total mystery to me :o ;D ;D
https://www.gov.uk/winter-fuel-payment/eligibility
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I have 6 years to go. No doubt the Govt. will have taken up my idea on means testing before then, and I wont be entitled as I have 47p too much in the bank. ;D
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I have 6 years to go. No doubt the Govt. will have taken up my idea on means testing before then, and I wont be entitled as I have 47p too much in the bank. ;D
WFP is not means tested - millionaires like Alan Sugar are eligible. The amount you have in the bank is irrelevant, so no need to waste that 47p on a packet of Werther's Originals to get below the 'limit' .
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I have 6 years to go. No doubt the Govt. will have taken up my idea on means testing before then, and I wont be entitled as I have 47p too much in the bank. ;D
WFP is not means tested - millionaires like Alan Sugar are eligible. The amount you have in the bank is irrelevant, so no need to waste that 47p on a packet of Werther's Originals to get below the 'limit' .
Read the post again... Highlighted part of it for your benefit ;)
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Thanks. ;) ::)
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I have 6 years to go. No doubt the Govt. will have taken up my idea on means testing before then, and I wont be entitled as I have 47p too much in the bank. ;D
WFP is not means tested - millionaires like Alan Sugar are eligible. The amount you have in the bank is irrelevant, so no need to waste that 47p on a packet of Werther's Originals to get below the 'limit' .
Read the post again... Highlighted part of it for your benefit ;)
Not going happen in the next 6 years though. This govt will stumble no from crisis to crisis for the next 2-3 years and get the square root of eff-all done except Brexit and Band-Aid panic measures post Brexit. Then we'll be within 2 years of the next election the Conservatives aren't going to risk upsetting their core voters (the Coffin Dodgers) so triple lock, WFP, Bus Passes, TV Licenses are safe.
Also, means testing millions of pensioners - the vast majority of whom don't currently file tax self assessments because their income is all basic rate - would be very unpopular, a vote loser, and very expensive. The only workable way would be to reduce the 40% tax band starting level for pensioners to reclaim the WFP in tax. Or just roll up the WFP into the state pension - but not everyone gets the same SP coz it's based on NI years so that gets complicated too.
Limiting WFP to those who are entitled to Pension Credit would have the streets of Westminster clogged with Zimmer Frames and Mobility scooters.
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All very true. I was just saying that as a matter of principle (as opposed to political reality) benefits should always be means tested.
The mess was created by Blairs Govt. and they left such a huge mess that it must be doubtful if it can ever be fixed.
They got a nation addicted to welfare, like a drug dealer gets people addicted to crack cocaine.
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Some (many!) years ago.I always remember being amazed when The Mrs started getting child benefit. At the time I was rather well paid and certainly didn't need it. Now, I'm not employed at all, so WFP is welcome.
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I firmly believe that all benefits should be means tested. The lack of this system is what has allowed the welfare state to become a tool for politicians to buy peoples votes with other peoples money, instead of giving enough help to those who genuinely need it.
The fact you've move to Spain shouldn't come into it imo. If you lived, worked and paid taxes here for most of your life, then you should still be entitled to help if you need it.
On the other hand, someone who moved to the UK a few years ago claiming benefits for their kids who have never lived here is ludicrous .
I believe this is going to be allowed to continue post Brexit, for some unfathomable reason.
You should certainly be entitled to the State Pension, particularly as you will not now be using any other UK services. >:(
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Isn't there some rule that British pensioners who moved to countries outside of the EU such as Australia or the USA have their pensions frozen at the level it was when they emigrated? ??? :-\
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He said that, if I hadn't rung up, I would have got an 'invitation to claim' letter in the post. Same with the state pension, you have to claim it.
If you don't need it, and you have normal life expectancy, then the usual advice in financial places is to NOT claim it and defer for 2-5 years. Deferred SP is increased by 1% every 9 weeks, or 5.8% p/a. It used to be 10.4% p/a prior to April 2016.
https://www.saga.co.uk/magazine/money/retirement/pensions/should-you-defer-your-state-pension
You won't get 5.8% in any (UK) bank account, and deferring by (say) 5 years may increase your SP from the current £158 maximum* to over £208 p/w. So £50p/w extra for a total cost to you of £158 p/w - you'll be in profit after just over 3 years from retiring. Therefore if you are expected to live for 8+ years after your SP age it usually makes sense to defer - assuming you can keep the wolf from the door in the mean time.
* New state pension under the new rules, no additional old rules Serps/S2P blah, blah, blah.
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Isn't there some rule that British pensioners who moved to countries outside of the EU such as Australia or the USA have their pensions frozen at the level it was when they emigrated? ??? :-\
Yes
https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension
Lord knows what will happen with EU countries post Brexit. Isn't part of Brexit that British tax payers money should be spent in the UK? ::)
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We can guess. The tories will penny pinch b ;D >:(y freezing state pensions of expats in the EU. Brits at home wont give a damn just like they did when previous governments pulled the same stunt on commonwealth expats who had paid into the system. Meanwhile the rich will get richer and the poor poorer. Foodbanks will be ever more necessarydespite the UK being 5th richest country on the planet.
My fall back plan is to comeback and claim every benefit I can including WFP. ;D
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I'm due mine in November apparently :D :D ;)
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He said that, if I hadn't rung up, I would have got an 'invitation to claim' letter in the post. Same with the state pension, you have to claim it.
If you don't need it, and you have normal life expectancy, then the usual advice in financial places is to NOT claim it and defer for 2-5 years. Deferred SP is increased by 1% every 9 weeks, or 5.8% p/a. It used to be 10.4% p/a prior to April 2016.
https://www.saga.co.uk/magazine/money/retirement/pensions/should-you-defer-your-state-pension
You won't get 5.8% in any (UK) bank account, and deferring by (say) 5 years may increase your SP from the current £158 maximum* to over £208 p/w. So £50p/w extra for a total cost to you of £158 p/w - you'll be in profit after just over 3 years from retiring. Therefore if you are expected to live for 8+ years after your SP age it usually makes sense to defer - assuming you can keep the wolf from the door in the mean time.
* New state pension under the new rules, no additional old rules Serps/S2P blah, blah, blah.
Actually, this is the exact opposite of what my accountant told me. Unlike private pensions, the state pension dies with you, even if it increases by being deferred, if you're dead it won't matter. Use it or lose it. Who can honestly predict their life expectancy ? Might get hit by a bus tomorrow ???
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He said that, if I hadn't rung up, I would have got an 'invitation to claim' letter in the post. Same with the state pension, you have to claim it.
If you don't need it, and you have normal life expectancy, then the usual advice in financial places is to NOT claim it and defer for 2-5 years. Deferred SP is increased by 1% every 9 weeks, or 5.8% p/a. It used to be 10.4% p/a prior to April 2016.
https://www.saga.co.uk/magazine/money/retirement/pensions/should-you-defer-your-state-pension
You won't get 5.8% in any (UK) bank account, and deferring by (say) 5 years may increase your SP from the current £158 maximum* to over £208 p/w. So £50p/w extra for a total cost to you of £158 p/w - you'll be in profit after just over 3 years from retiring. Therefore if you are expected to live for 8+ years after your SP age it usually makes sense to defer - assuming you can keep the wolf from the door in the mean time.
* New state pension under the new rules, no additional old rules Serps/S2P blah, blah, blah.
Actually, this is the exact opposite of what my accountant told me. Unlike private pensions, the state pension dies with you, even if it increases by being deferred, if you're dead it won't matter. Use it or lose it. Who can honestly predict their life expectancy ? Might get hit by a bus tomorrow ???
I entirely agree, Rog.
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Statistically the average person (man on the Clapham Omnibus) will be better off, but yes you might get hit by the same bus.
The SP does die with you, but currently cohort life expectancy for a 65yo male is 21.2 years, and a 65yo female is 23.5 years. So on average, deferring for 5 years means most people will be better off. If your current health is above average, then you skew your odds higher. If you smoke 60 a day, get through 5 bottles of Scotch a week and live on takeaway meals then probably the reverse is true.
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What's also worth considering is when you can best make use of your cash. Yes, on average you'll be better off by waiting. But for most people the last 1-2yrs of life are spent dribbling into your liquidised dinner in some institution. So very little cash required, unless you want liquified fillet steak that is. :P
In contrast, taking more money up front may leave you worse off overall but having more cash when you're able to take advantage of it.
Just an alternative viewpoint.
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What's also worth considering is when you can best make use of your cash. Yes, on average you'll be better off by waiting. But for most people the last 1-2yrs of life are spent dribbling into your liquidised dinner in some institution. So very little cash required, unless you want liquified fillet steak that is. :P
In contrast, taking more money up front may leave you worse off overall but having more cash when you're able to take advantage of it.
Just an alternative viewpoint.
Yep.....that is mere existence rather than life. :-\
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What's also worth considering is when you can best make use of your cash. Yes, on average you'll be better off by waiting. But for most people the last 1-2yrs of life are spent dribbling into your liquidised dinner in some institution. So very little cash required, unless you want liquified fillet steak that is. :P
In contrast, taking more money up front may leave you worse off overall but having more cash when you're able to take advantage of it.
Just an alternative viewpoint.
Jimmy is a smart fella for one who owns an elderly (and terminally dull) swede. ;)
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I feel there is also a trust issue here. Hardly a day passes without us hearing about some financial crisis in one or other sectors of our public services. Brexit.......nuff said. Add to this the way the government flip-flops on benefits and pensions and people are bound to feel uncertain about the future.
A bird in the hand and all that.
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I feel there is also a trust issue here. Hardly a day passes without us hearing about some financial crisis in one or other sectors of our public services. Brexit.......nuff said. Add to this the way the government flip-flops on benefits and pensions and people are bound to feel uncertain about the future.
A bird in the hand and all that.
Yep, I like it when money magically appears in my bank account each month :y However, I also have a private pension. I am NOT taking this and hope not to do so until the next tax year as I was still earning in this tax year so it may get taxed, and I have already taken a lump sum out of it. Plus, if I kicked it it would become part of my estate and could be inherited by wife and kids. State pensions however, take it while you can, absolutely.
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Jimmy is a smart fella for one who owns an elderly (and terminally dull) swede. ;)
All things in their time old chap! When I worked out what difference the £500pcm would make for me in my 50's, suddenly the BMW (or a similar replacement) didn't seem quite so "exciting". Once the pension and other interest-accruing assets are bubbling along nicely, then I will break out the toys :P
I feel there is also a trust issue here. Hardly a day passes without us hearing about some financial crisis in one or other sectors of our public services. Brexit.......nuff said. Add to this the way the government flip-flops on benefits and pensions and people are bound to feel uncertain about the future.
A bird in the hand and all that.
100% Agree, the government are already trying to (more subtly) change this for those of us in our 20's and 30's who are fortunate enough to be able to put away a few pounds each month. This new Lifetime Isa (and other ISA products) are specifically designed to lure us away from pension contributions, where the tax relief is given up front and onto the promise of tax relief when we retire.
I am not so trusting!
That said, swmbo and I will get one of these LISA's each as they are contractually bound to let you have the cash at 60, whereas there is already talk of pushing the private pension age past 70 or even 75 for someone my age :o
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That said, swmbo and I will get one of these LISA's each as they are contractually bound to let you have the cash at 60, whereas there is already talk of pushing the private pension age past 70 or even 75 for someone my age :o
Govt legislation trumps contract law. It will be just as easy for the Govt to up the LISA age from 60 as it was for them to up the Personal Pension age from 50 to 55. I'm afraid trying to second guess what a future Govt may do is pointless; you have to play by the current rules. For that reason I see little benefit in LISA's @60 when the current Personal Pension age is 55 with 25% tax free cash. If you're a 40% tax payer, stuff your PP with as much as you can afford, If you're a 20% tax payer the case is less clear, but I'd still prefer pensions over LISA's.
Current State pension age will rise to 66 by 2020 and 67 between 2026-28. There is a proposal to increase it to 68 in 2044, but AIUI this legislation hasn't actually been enacted. The Govt have stated that they will not change the SP age for those within 10 years of their existing SP age. There was also a proposal to link the minimum age at which you can draw your personal pensions to SP age minus 10, but again that hasn't been enacted (yet). There have been no proposals to increase SP age to 70-75 (yet).
Recent pension freedom changes mean you can retire at 55, drawdown your private pensions at an increased rate from 55-66/7, defer your SP and continue drawing down the PP at a higher rate, then commence the SP at 70-72 and reduce the drawdown rate on the PP. This is where the 5.8% increase in dererral works - it's very tax efficient but only works if you don't need the SP money between 67-72. If you've saved enough into your PP then you shouldn't need the SP.
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That said, swmbo and I will get one of these LISA's each as they are contractually bound to let you have the cash at 60, whereas there is already talk of pushing the private pension age past 70 or even 75 for someone my age :o
Govt legislation trumps contract law. It will be just as easy for the Govt to up the LISA age from 60 as it was for them to up the Personal Pension age from 50 to 55. I'm afraid trying to second guess what a future Govt may do is pointless; you have to play by the current rules. For that reason I see little benefit in LISA's @60 when the current Personal Pension age is 55 with 25% tax free cash. If you're a 40% tax payer, stuff your PP with as much as you can afford, If you're a 20% tax payer the case is less clear, but I'd still prefer pensions over LISA's
My understanding is a bit different, LISAs are a contractual arrangement between you and he provider. The government hands over the "bonus" 25% to the provider at the end of the tax yr in which you make the contributions and it is then yours. However if you withdraw pre 60, the LISA provider is bound under the terms to deduct 25% plus gains from the amount you receive. While I agree that they can change the rules (of course), this structure makes blanket changes harder.
Having said all of that, I haven't signed up for one yet so haven't had my nose in the details yet.
There are also a couple of other points worth mentioning. The lifetime allowance has taken several jumps down in recent years and I reckon even at current levels I'll hit it at some point, so I may as well have the "bonus" cash as hit the lifetime allowance a few years earlier than I would otherwise.
Also, under current rules ISAs of all types are tax free on withdrawal, which is nice if you are likely to be a pensioner paying higher rate tax.
With all these types of things, diversity is the key. I can see a pension pot being a main source of retirement income, but there should be some other assets in there too.
Talking of pensions, as you seem to be quite well across the subject, are you aware of any way to pass a pension pot between spouses before retirement? Due to the nature of our work I'm currently accruing the majority of the pension assets and SWMBO very little. The only way I've come up with to "pass" the assets between us is to divorce. Or for me to die, which seems a bit extreme
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That said, swmbo and I will get one of these LISA's each as they are contractually bound to let you have the cash at 60, whereas there is already talk of pushing the private pension age past 70 or even 75 for someone my age :o
Govt legislation trumps contract law. It will be just as easy for the Govt to up the LISA age from 60 as it was for them to up the Personal Pension age from 50 to 55. I'm afraid trying to second guess what a future Govt may do is pointless; you have to play by the current rules. For that reason I see little benefit in LISA's @60 when the current Personal Pension age is 55 with 25% tax free cash. If you're a 40% tax payer, stuff your PP with as much as you can afford, If you're a 20% tax payer the case is less clear, but I'd still prefer pensions over LISA's
My understanding is a bit different, LISAs are a contractual arrangement between you and he provider. The government hands over the "bonus" 25% to the provider at the end of the tax yr in which you make the contributions and it is then yours. However if you withdraw pre 60, the LISA provider is bound under the terms to deduct 25% plus gains from the amount you receive. While I agree that they can change the rules (of course), this structure makes blanket changes harder.
Having said all of that, I haven't signed up for one yet so haven't had my nose in the details yet.
There are also a couple of other points worth mentioning. The lifetime allowance has taken several jumps down in recent years and I reckon even at current levels I'll hit it at some point, so I may as well have the "bonus" cash as hit the lifetime allowance a few years earlier than I would otherwise.
Also, under current rules ISAs of all types are tax free on withdrawal, which is nice if you are likely to be a pensioner paying higher rate tax.
With all these types of things, diversity is the key. I can see a pension pot being a main source of retirement income, but there should be some other assets in there too.
Talking of pensions, as you seem to be quite well across the subject, are you aware of any way to pass a pension pot between spouses before retirement? Due to the nature of our work I'm currently accruing the majority of the pension assets and SWMBO very little. The only way I've come up with to "pass" the assets between us is to divorce. Or for me to die, which seems a bit extreme
Extreme but inevitable. :y
....as sure as night follows day you will 'drop off the perch' :)
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My understanding is a bit different, LISAs are a contractual arrangement between you and he provider. The government hands over the "bonus" 25% to the provider at the end of the tax yr in which you make the contributions and it is then yours. However if you withdraw pre 60, the LISA provider is bound under the terms to deduct 25% plus gains from the amount you receive. While I agree that they can change the rules (of course), this structure makes blanket changes harder.
Having said all of that, I haven't signed up for one yet so haven't had my nose in the details yet.
The tax treatment of all saving schemes is subject to Govt rules. There is a risk they'll change the ages at which you can take a pension or LISA. There is a risk they'll lower or stop the tax free cash from pensions. There is a risk they'll stop higher rate tax relief into pensions. There are dozens of legislative risks which is why it's silly to try and second guess what a future Govt may do. You just have to play by the rules as they are currently set.
There are also a couple of other points worth mentioning. The lifetime allowance has taken several jumps down in recent years and I reckon even at current levels I'll hit it at some point, so I may as well have the "bonus" cash as hit the lifetime allowance a few years earlier than I would otherwise.
Yes, but the current lifetime allowance is £1M, which should be enough to produce circa £40K income in retirement. Once you add in the SP from 66/67/68 (currently £8K) that will make you a higher rate tax payer in retirement. I too am hoping to get very close to the LTA, but I don't see a real issue with the £1M limit - if you're a HRT payer in retirement then the tax advantages of 40% on the way in vs 40% on the way out aren't great.
Also, under current rules ISAs of all types are tax free on withdrawal, which is nice if you are likely to be a pensioner paying higher rate tax.
Stocks and Shares ISAS spread legislative the risk. You've already paid the tax on the way in so they're (currently) tax free on the way out. But it's silly to assume the rules for ISA's won't change if you believe that pension rules might. There are lots of people with £1M+ SSISA pots paying no tax on them. Strikes me these are an easy target for a cash hungry Government.
With all these types of things, diversity is the key. I can see a pension pot being a main source of retirement income, but there should be some other assets in there too.
Talking of pensions, as you seem to be quite well across the subject, are you aware of any way to pass a pension pot between spouses before retirement? Due to the nature of our work I'm currently accruing the majority of the pension assets and SWMBO very little. The only way I've come up with to "pass" the assets between us is to divorce. Or for me to die, which seems a bit extreme
Nope - Die or Divorce are the only two legal ways.
If your wife doesn't work then you can pay in £2880 p/a to a PP for her. If she does work, then the limit is 100% of her gross salary up to £40K p/a. There is nothing to stop you paying money into her pension pot as long as you adhere to those limits. She'll only get 20% tax refunded from your 40% taxed income, but it'll all be tax free on the way out.
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Jimmy is a smart fella for one who owns an elderly (and terminally dull) swede. ;)
All things in their time old chap! When I worked out what difference the £500pcm would make for me in my 50's, suddenly the BMW (or a similar replacement) didn't seem quite so "exciting". Once the pension and other interest-accruing assets are bubbling along nicely, then I will break out the toys :P
I feel there is also a trust issue here. Hardly a day passes without us hearing about some financial crisis in one or other sectors of our public services. Brexit.......nuff said. Add to this the way the government flip-flops on benefits and pensions and people are bound to feel uncertain about the future.
A bird in the hand and all that.
100% Agree, the government are already trying to (more subtly) change this for those of us in our 20's and 30's who are fortunate enough to be able to put away a few pounds each month. This new Lifetime Isa (and other ISA products) are specifically designed to lure us away from pension contributions, where the tax relief is given up front and onto the promise of tax relief when we retire.
I am not so trusting!
That said, swmbo and I will get one of these LISA's each as they are contractually bound to let you have the cash at 60, whereas there is already talk of pushing the private pension age past 70 or even 75 for someone my age :o
Sensible, I opted out of paying the higher NI payment into the extra Goverment SERPS scheme and put the contributions into my private pension. SERPS was scrapped by Cameron with no compensation, just everbody getting the £133pw if they had paid NI for enough years.