Over 55s hoping to enjoy a 'golden retirement' are facing poverty

Thrugelmir

C_Mababejive wrote: »

But why shouldnt they help me? They help plenty of others....whats different about me?

Whose they?

Kohoutek

C_Mababejive wrote: »

But why shouldnt they help me? They help plenty of others....whats different about me?

I'm assuming you're some years off until retirement. Since the country has been essentially bankrupt since late 2008, I wouldn't hold out hope that a state pension or other benefits that pay enough to live off will exist in the coming decades.

stueyhants

What is the big deal about retiring at 65 ? Even though I'll be getting a final salary pension (not public sector btw) I'll still want to work part time say 2 or 3 days a week post 65. I would be bored out of mind after a few years of just doing the gardening !
I suppose it helps if you have an interesting job but I don't think a sudden change from working to retirement is healthy. There needs to be wind down period.

kabayiri

Talking about prudent investment strategies or redirecting your investment between property and pension is going to mean zilch for a large number of people.

For whatever reason there will be people who lack a decent security net at retirement age (lack of planning ; lack of funds at key times ; poor timing in the housing market ; poor health at key stages in their life; marital break up)

Why don't we change the rules so that those over 65 are able to retain more of their income from part time roles? Your average pensioner is now much fitter than the average pensioner 30 years ago. Plus, these people have a wealth of experience and maturity to bring to roles needing customer service and advice.

A plan for continued part working beyond retirement should be made a viable option.

Harry_Powell

kabayiri wrote: »

Talking about prudent investment strategies or redirecting your investment between property and pension is going to mean zilch for a large number of people.

For whatever reason there will be people who lack a decent security net at retirement age (lack of planning ; lack of funds at key times ; poor timing in the housing market ; poor health at key stages in their life; marital break up)

Why don't we change the rules so that those over 65 are able to retain more of their income from part time roles? Your average pensioner is now much fitter than the average pensioner 30 years ago. Plus, these people have a wealth of experience and maturity to bring to roles needing customer service and advice.

A plan for continued part working beyond retirement should be made a viable option.

They already do. When you turn 65, you get an Age Related Allowance of £5k which, coupled with the normal tax free allowance of £5k, allows people of retirement age to earn £10k tax free.

Typically the state pensions come to £6k per year, so a retired person could make an extra £4k completely tax free. Retired people also don't pay national insurance so there is another large tax saving.

Harry_Powell

Thrugelmir wrote: »

Whose they?

(I know this was a rhetorical question...but I can't help myself)

"They" = "Us, the tax payer"

It seems that yet another person has decided to live life for today and let someone else pay for them tomorrow. Excellent. Why not go further and go on benefits, we can support you* through your 'working life' too!

* aimed not at Thrugelmir, but the person he is responding to...

Thrugelmir

Harry_Powell wrote: »

They already do. When you turn 65, you get an Age Related Allowance of £5k which, coupled with the normal tax free allowance of £5k, allows people of retirement age to earn £10k tax free.

Typically the state pensions come to £6k per year, so a retired person could make an extra £4k completely tax free. Retired people also don't pay national insurance so there is another large tax saving.

Hence why even a small pension plan makes sense as it ulitises the £4k allowance.

Thrugelmir

Harry_Powell wrote: »

(I know this was a rhetorical question...but I can't help myself)

"They" = "Us, the tax payer"

It seems that yet another person has decided to live life for today and let someone else pay for them tomorrow. Excellent. Why not go further and go on benefits, we can support you* through your 'working life' too!

* aimed not at Thrugelmir, but the person he is responding to...

They is "we". As we all continue to pay tax in one form or another even in retirement.

Harry_Powell

Thrugelmir wrote: »

They is "we". As we all continue to pay tax in one form or another even in retirement.

unless we arrange our tax affairs correctly. A combination of state pensions paying £6k, personal pension paying £4k and ISA savings that are tax free can result in a retirement income of £40k or more with zero tax (providing you put enough away in your ISAs!)

Harry_Powell

Thrugelmir wrote: »

Hence why even a small pension plan makes sense as it ulitises the £4k allowance.

Yep, tax relief of 20% on all pension contributions, 25% of the whole pension pot can be withdrawn tax free and a tax free income on the pension you receive.

For those who get tax credits, they receive more money via tax credits if they pay into a pension.

You can't beat it.