Something that doesn't seem to get mentioned

RenovationMan

pqrdef wrote: »

Yes. I've got those, but I don't believe they secure my future against political risks. When the public mood turns against a selected victim group, anything can happen. And when money gets tight, public moods can turn ugly.

Do you stockpile food, just in case?

lazer

RenovationMan wrote: »

So fare we have seen the number of contribution years slashed from 44 to 30 to qualify for a state pension, meaning that more Mums can claim full state pension.
QUOTE]

SAHM's were entitled to Home responsibilities protectinon, as long as they are entitled to be caliming CB (or Family allowance) these years at home counted as qualifying years

de1amo

just be interesting to know--who has got a pension sufficient coupled with the oap to support any sort of reasonable lifestyle?--also those who do BTL forsee their income flow into retirement as it seems the price of properties are in reverse and it maybe just rental income that is profitable!

RenovationMan

lazer wrote: »

SAHM's were entitled to Home responsibilities protectinon, as long as they are entitled to be caliming CB (or Family allowance) these years at home counted as qualifying years

Yes, but that was scrapped in 2010 and it could not reduce the number of qualiifying years below 20. It has been replaced by carer's credits, which have the following criteria...


If you reach your State Pension Age (SPA) on or after 6 April 2010, you will build up credits for whole years that you:

• Are a foster carer;
• Care for one or more severely disabled persons for 20 hours a week or more; or
• Get Child Benefit for a child under 12 years of age.
• From 6 April 2011, you are a grandparent and look after any of your grandchildren who are under 12 years of age.

SAHM no longer receive credits towards a state pension once their children are over 12, but with the lower requirement of 30 years most should still attain a full pension.

RenovationMan

de1amo wrote: »

just be interesting to know--who has got a pension sufficient coupled with the oap to support any sort of reasonable lifestyle?--also those who do BTL forsee their income flow into retirement as it seems the price of properties are in reverse and it maybe just rental income that is profitable!

I do, but then I have always made sure that I contributed to a pension plan, even when I was earning a low income. I made it a priority in my financial planning as I am scared stiff of being in poverty in my old age.

I am not a BTL landlord but I believe the whole point of that strategy is to never sell the properties (so the price is meaningless) but instead to use their rental income to pay off the mortgage while the BTL landlord is working and therefore doesn't need the BTL income, and then to use the rental to fund a retirement (when the BTL properties are mortgage free).

de1amo

i wonder what percentage of working pay is considered reasonable(along with the oap)? given that the mortgage is paid off!!

RenovationMan

de1amo wrote: »

i wonder what percentage of working pay is considered reasonable(along with the oap)? given that the mortgage is paid off!!

Look at your outgoings now and remove the mortgage and any work related expenses such as travel, clothing, lunches (if not brought from home), children related expenses and then add a bit extra to heating and lighting costs as you will be home more. That should give you a round about figure to work from for at least your day to day expenses.

I've just worked mine out and I need £1200 a month to live, which equates to a £14,400 annual income. Not too bad.

If I have a state pensions of £6k per year (combined Basic & SP2), then I will need to find a further £8400. Using an online pension calculator this equates to a £140k pension pot that I need to save up in order to just maintain my current lifestyle in retirement.

oldvicar

RenovationMan wrote: »

Look at your outgoings now and remove the mortgage and any work related expenses such as travel, clothing, lunches (if not brought from home), children related expenses and then add a bit extra to heating and lighting costs as you will be home more. That should give you a round about figure to work from for at least your day to day expenses.

I've just worked mine out and I need £1200 a month to live, which equates to a £14,400 annual income. Not too bad.

£1200 a month to live probably requires an annual income slightly above £14,400 - unless its an entirely tax free income.

Graham_Devon

RenovationMan wrote: »

I do, but then I have always made sure that I contributed to a pension plan, even when I was earning a low income. I made it a priority in my financial planning as I am scared stiff of being in poverty in my old age.

I am not a BTL landlord but I believe the whole point of that strategy is to never sell the properties (so the price is meaningless) but instead to use their rental income to pay off the mortgage while the BTL landlord is working and therefore doesn't need the BTL income, and then to use the rental to fund a retirement (when the BTL properties are mortgage free).

That's the whole point of the plan as far as I have always understood.

Sell them, and the proceeds are your pension. BTL is a business, one which you don't want to be running in your dotage.

de1amo

i am 48 and 'claim' an ocupational pension of 8400 pa-i have a BTL which yeilds 9000 and i own my own business which will continue past my retirement--i am trying to cover all bases but i am never sure if i am doing enough!