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It's actually better than my maths, because you won't get the whole £12K/£9.6K on day one to put in the bank for a year. You'll get 12 monthly payments of £800. The first £800 will earn 4% interest for 12 months, the second £800 for 11 months, the third £800 for 10 months etc, etc and the final £800 for one month. Therefore, whilst the headline APR interest rate on your saved pension monies might be 4%, the actual interest earned will only be half that - averaging out at about 2%, so the 'lump sum' will only have about £192 interest added to it at the end of the first year, making a total of £9792.
The payback is then (9792/696), or 14.07 years.
Whilst Stemo might like a bird in the hand, it's no good if you pluck, stuff, and roast for an hour to make a meal. Give a man a fish and he eats for a day. Teach a man to fish and he becomes alcoholic. Or something like that.
Makes sense. Although as Im planning to work for four years after pensionable age, through years 2,3,4 the figures will tip the balance to a degree in the other direction as the money accumulates ?
The state pension and probably tax thresholds will also change through that period too.
My state pension age is 66, which is 28th October this year.
That aside, Im a bit lost now. State pension is currently £12000 pa (within a few quid). If I pay 20% tax on it, I make that approx. £9500.
I dont understand where the £7600 figure comes from.
Whenever I had two jobs, the second one was always taxed/NI paid on the full amount keeping the allowances on the primary job. HMRC are actually pretty good in this regard as they will allocate the allowances as you request.Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.
Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?
Yes - sort of. What happens is your personal allowance is reduced by the amount of your state pension. Your employer will receive a new tax code for you to reflect this, and you'll end up paying tax on £12K (or whatever your SP is) more of your salary.
Not sure if this would apply to a state pension though as you would be presumed to be at least semi retired so being retired would be your primary income.
Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.
I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.
You don't have to take your State Pension at 67. You can defer it. If you continue to work past your normal State Pension Age then this can be very good value.
https://www.gov.uk/deferring-state-pension/what-you-get
The amount that is then paid out when you do take it will have increased by 5.8% per year of deferral. I haven't done the sums recently, but if you are in good health (you expect to live for > 10 years) the conventional wisdom was that it's best to defer by between 3 and 5 years, which would result in about a 33% increase in your state pension - about £15900 p/a.
Of course, you could die before you break even - but them's the breaks.
Im not sure it would be wise to defer it. Even though I will effectively pay 20% tax on it.
Lets say I save £9500 of it p.a.( after tax figure) and get say 4% interest p.a. That has to be better than deferring it and getting the 5.8 % interest but not putting £9500 in the bank for the four years Im planning on working after I start claiming it ? *
I should add, I will still be below the 40% threshold when everything is added up.
Also, I will stop having to pay NIC once I reach state retirement age, in either scenario which will be nice.
Edit * Actually, having thought about it, that will depend on how long I live. At some point there will be a crossover, where I would have been better off deferring.
Maybe stick with my plan and get swmbo to defer hers, so covering both bases ?
Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.
Correct me if I'm wrong, but if you carry on working whilst in receipt of the state pension, then surely it's your employment pay (and any private / work pension / income over the tax free allowance) that is taxed, not your state pension?
Your state pension, from November, is almost £12,000. That will be taxable if you carry on working, of course. But, still, it's a nice bonus.
I will be taxed on mine as Im still working, but yes a nice bonus to build up reserves with.
Swmbo is currently 12 years short of NIC,s for her state pension, but we are in the process of buying them , so she will also get full state pension untaxed from June 2028.
Interesting that US 10 year Treasury Bond yields have tumbled from 4.8% in January to 3.95% currently, which saves the US taxpayer hundreds of millions in interest payments on America's massive debt pile of around $36.5 trillion.
The biggest drop has happened in the last week from 4.4%, probably as investors have dumped stocks and moved into 'safe haven' bonds instead.
Fibre-optic drones, Oreshnik and Avangard hypersonic missiles, the air-launched Kinzhal glide missile, S-400 Triumph air defence system, Uran-9 unmanned ground vehicle, Su-57 and Su-35 advanced fighters etc, etc.
As for the rest of your post: the Russian army has gained thousands of volunteers, they do not conscript from prisonsFalse
At the start, Russia had no intention of capturing Kiev.I'll call that false as well. No point in capturing Hostomol airport unless you intend to use it as an airborne bridgehead, supporting rolling tanks down from Belarus into Kiev. I believe they thought they could capture Kiev in 3 days, and after that the whole country would fall within a few weeks. When that didn't work, they had little option but to pull out the way they'd come in.
The truth is that Russia has been fighting NATO. Ukraine has been a proxy.You can make the argument that they're fighting against NATO tech now, three years on, but not during the first days, weeks, months. They were on their own then.
