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The Most Important Document You Will Never Read....
Comments
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It's rare for me to challenge one of Generali's eminent threads, but in this case I must.
There may well be more important documents out there which I have never read. One obvious document could be a contract for a hitman to 'take me out' when I least suspect it.
I have not 'read' this contract yet, but I feel it very important for me to add to my 'unread' list if it exists
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RenovationMan wrote: »
So to recap, Devon:
misscalculated the net salary down by £170,
misscalculated the pension contribution up by £152
Deducted pension from net pay instead of gross.
misscalculated the outgoings by £90.
In his defence, only 4 glaring errors is quite the improvement.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
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RenovationMan wrote: »The question is whether they were deliberate in order to back up his argument....
A few quid in totting up is nothing to the big chunk of stuff you chose to ignore.
"Oops, I've only got £200 left to pay for everything else, including any items I need to buy (bed, fridge, literally anything).....any child maintenance payments, any telecommunication payments, any debt payments, any health (dental etc) payments, any car parking charges, any prescriptions, literally anything....."
One big omission from both of you is the depreciation and maintenance of the stuff in life.
It also presupposes that people aren't entitled to live just a little for today rather than subsist to provide for a future that may or not be in their remit to decide."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »A few quid in totting up is nothing to the big chunk of stuff you chose to ignore.
"Oops, I've only got £200 left to pay for everything else, including any items I need to buy (bed, fridge, literally anything).....any child maintenance payments, any telecommunication payments, any debt payments, any health (dental etc) payments, any car parking charges, any prescriptions, literally anything....."
One big omission from both of you is the depreciation and maintenance of the stuff in life.
It also presupposes that people aren't entitled to live just a little for today rather than subsist to provide for a future that may or not be in their remit to decide.
Er, you do realise that it wasn't my list?0 -
You're missing the point. Graham's guy has £200 spending money. Yours has a £380 emergency fund and lives the life of a monk. Doing penance.RenovationMan wrote: »Er, you do realise that it wasn't my list?"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
You're missing the point. Graham's guy has £200 spending money. Yours has a £380 emergency fund and lives the life of a monk. Doing penance.
Er, no you're missing the point. Graham's guy and my guy were the same one. My one just had the correct mathematics.
Graham's faulty mathematics had £200 spending money. My correct mathematics had £384 spending money AFTER also contributing £4k a year to his pension plan.0 -
They both pay into the pension plan.RenovationMan wrote: »Graham's faulty mathematics had £200 spending money. My correct mathematics had £384 spending money AFTER also contributing £4k a year to his pension plan.
But in present circumstances, let alone likely future circumstances, money in a pension pot struggles to keep pace with inflation. Which means £4K isn't enough.
So the conclusion seems to be that even though our guy earns more than average and doesn't seem to have a family to keep, he still can't put enough aside to finance his own retirement without a State subsidy."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
They both pay into the pension plan.
But in present circumstances, let alone likely future circumstances, money in a pension pot struggles to keep pace with inflation. Which means £4K isn't enough.
So the conclusion seems to be that even though our guy earns more than average and doesn't seem to have a family to keep, he still can't put enough aside to finance his own retirement without a State subsidy.
Ah, you've changed your point but let's go with it anyway.
£4k for a person earning £30k represents 13% of his income. The pensions 'rule of thumb' is:
Take the age you start your pension and halve it.
Put this percentage of your salary aside each year until you retire.
Therefore, if Graham's test case bloke STARTS his pension at age 25, then he should be putting 12.5% of his gross salary away, which he is.
It just underlines the point that the sooner you start a pension, the more affordable it is. If you delay then it will cost you a whole lot more.
If Graham's test bloke started his pension as soon as he left Uni (for example) and got his first job, he would have started a pension at age 21 and so he should put away 10.5%. If he earned £16k then he would be putting away £1680.
As pension contributions come from gross pay, £1680 would actually be £1344 from his annual net pay. This equates to £112 per month or £25 per week. I have to admit that this is MUCH less than I spent on beer and clubbing when I was 21!
Just out of interest, I imagined that Graham's £30k test bloke was 26 and never gota payrise again. If he put away his £333.33 per month until he retired at age 65 (39 years) he would have a pension pot of 155,998.44 if he had a 0% return on his ivestment.
If he had a 3% interest rate on his pension savings over that same period, he would have a pension pot of 295,635.94
If he had a 6% interest rate on his pension savings over that same period, he would have a pension pot of 621,386.06
I used this savings calculator for the sums: http://www.thisismoney.co.uk/money/saving/article-1633419/Monthly-lump-sum-savings-calculator.html0 -
IRenovationMan wrote: »Er, no you're missing the point. Graham's guy and my guy were the same one. My one just had the correct mathematics.
Graham's faulty mathematics had £200 spending money. My correct mathematics had £384 spending money AFTER also contributing £4k a year to his pension plan.
Grahams arithmetic gave you £90 of that;)
The original point said "save" not pay into a pension which is the way you have generated the other £70.
Either way £65/£85 a week for all the other stuff in life isn't a great deal when the expenses used are light anyway.
Two other items for the pot:-
- Student loan repayments
- Any employer contribution to the pension
- Saving for a deposit,,,"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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