CSA and Pensions

krashovr10ad

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I see again on the news that the Government is concerned that we're all not saving enough for our pension and that we're all living for the now. Have they seen the true cost of living..? It's difficult enough for some to meet the bills of today - let alone put money aside for the future. No everyone has the lifestyle of the Beckhams (or the Blairs)...

Can somebody please get the CSA to realise that if we pay money into a pension then they can't really count that money as disposable income as it's removed from our wages before we get them. If I were to pay £100 into a pension - then that's £100 I don't have. It's not £100 into the pension and still have £50 to do with as I want...

It also means that nobody is gaining from that money now - not me, my child or my new family - as I've got another 31 years of working ahead it's going to be a very long time before anyone sees any of that money again...

Note - I don't pay £100 into a pension.

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Rebekka_2

But that would be another option for NRP's to not pay maintenance, lets chuck it into a pension for my future, and stuff my childs upbringing

Scarlett1

if the CSA regards pensions as income then its probably because its optional, I can imagine if this changed absent parents sticking a huge chunk of their money into one to avoid paying maintenace.

seven-day-weekend

Scarlett1 wrote:

if the CSA regards pensions as income then its probably because its optional, I can imagine if this changed absent parents sticking a huge chunk of their money into one to avoid paying maintenace.

Every time there is a thread about the CSA someone says something like this. It must be because we never hear about the people who DO pay.

I find it difficult to believe that people would rather put their money into a fund that they can't touch for thirty years (and then only have a crappy annuity, on today's rules), rather than pay for their children who, presumably, they love even if the relationship with their other parent has broken down.

Andy_L

http://www.csa.gov.uk/old/walkthrough/earnings-employ.asp

"If the non-resident parent or parent with care is employed we will look at their net income. This is usually their earnings less a deduction for tax, National Insurance contributions and generally 50% of any contribution to an occupational or personal pension scheme"

FairyElephant_2

The CSA will allow a small amount for pensions, and not include this in their calculations, but it seems to be very arbitrary.....

My DH has 3 small pension schemes - the CSA have told him they only take the 'major pension' into account, so he is losing out cos they will only look at one of them, even tho' all 3 don't add up to anywhere near what he is recommended to be saving for his retirement!

I think it would be fairer to allow a % amount of income for pension schemes, and as long as the parent can prove they are paying thid into pensions then it to be exempt - but that would be far too sensible & logical for the CSA!

Scarlett1

seven-day-weekend wrote:

Every time there is a thread about the CSA someone says something like this. It must be because we never hear about the people who DO pay.

I find it difficult to believe that people would rather put their money into a fund that they can't touch for thirty years (and then only have a crappy annuity, on today's rules), rather than pay for their children who, presumably, they love even if the relationship with their other parent has broken down.

krashovr pays for his children so there is one example, unfortunately not all men are like that and a large amount dont give a toss about their children, I havnt seen my ex's sorry @ss for about 18 months, as for maintenace well he chucked his job in to get the csa off his back cause he had to pay £50, in his eyes thats £50 he dont have to shove up his nose or smoke away, so you may find it difficult to believe but for me its my life and for many other single parents on this board :rolleyes:

Scarlett1

FairyElephant wrote:

The CSA will allow a small amount for pensions, and not include this in their calculations, but it seems to be very arbitrary.....

My DH has 3 small pension schemes - the CSA have told him they only take the 'major pension' into account, so he is losing out cos they will only look at one of them, even tho' all 3 don't add up to anywhere near what he is recommended to be saving for his retirement!

I think it would be fairer to allow a % amount of income for pension schemes, and as long as the parent can prove they are paying thid into pensions then it to be exempt - but that would be far too sensible & logical for the CSA!

dont give the CSA another job to do :eek: I have been waiting 6 months for them to action £5 per week of my ex's JSA, dont fancy waiting any longer

sured

so does that mean the absent parent should end up with a nice fat pension, whilst the parent with care has to struggle with less money. i had to work part time while my son was small due to the cost of childcare, so my pension has suffered accordingly, as i'm sure alot of single parents pensions have. what a fantastic thank you we get for our contributions to the future of this country.

kelloggs36

I find it difficult to believe that people would rather put their money into a fund that they can't touch for thirty years (and then only have a crappy annuity, on today's rules), rather than pay for their children who, presumably, they love even if the relationship with their other parent has broken down.

You would be surprised at what lengths some NRPs would go to!!!!!!! Some would sell their own grandmother rather than pay for their children. Not necessarily because they don't care for their children, but to get revenge to their ex - yes it is very sad that they use their children in this way, but it is a fact.

Clearly not ALL NRPs are like this, but those who are give those who aren't a bad name! Unfortunately, my ex is one who would rather go to prison than pay for his daughter.

kelloggs36

Under the new (existing) scheme, they allow 100% of pension contributions to be deducted before calculating net income. However, I am not sure if that is all types of pension, or just company schemes.