Is £40,000 really a liveable income for families in the UK?

chewmylegoff

real1314 wrote: »

And yet you complain about people who get paid £20k per year wanting a decent pension?

The irony of it. :cool:

Firstly you should look up irony in a dictionary.

Secondly, I have never said that I think someone on £20k a year should get a "decent" pension. I just don't think they should get a ludicrous pension which they could never realistically afford accrue in the real world. in fact the govt's current offer is still very much more than public sector workers could hope to accrue if they were in money purchase schemes.

chewmylegoff

Butterfly_Brain wrote: »

I took out a private pension 25 years ago and it will only be worth £1 a week when I retire.

Presumably because you haven't been paying anything in to it...

quantic

michaels wrote: »

Well unless there is a house price disaster we have 450k of equity so we will probably be ok...but thanks for your concern

Let me get this right, your bragging about having 450k equity that you did not acquire through paying for it (interest only), you acquired it by being lucky and booming house prices.

You then go on to brag that you only work 3 days a week and get a shed load of benefits to subsidise your lifestyle of choosing not to work fulltime, and your wife too. Which you wouldn't be able to do should you not be fortunate enough to receive benefits.

In my mind the worst kind of benefit recipient, someone who doesn't need it and is quite clearly taking advantage of a system that will not be available to his kids and is actually quite smug even with that in mind.

Your just as bad as those who receive benefits and pretend to be unwell. I hope your benefits and smugness are an adequate subsidy for your lack of pride.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Wow. I bet that post just about made your head explode Graham!!!:D

Well yes, it does. Like others have suggested, the numbers simply don't add up.

I'm completely baffled as to how michaels managed to get through 2004-2008. His mortgage would have been taking over half of his income, leaving a pitance to pay for everything else.

I don't want to come across as having a pop, as I'm not. It's just completely baffling, and as the income is roughly the same as myself, I'd love to know how it's done....maybe I could make use of the advice?

michaels

Or I have worked for my employer for nearly 20 years being rewarded when business was good and standing by them and accepting reduced hours to help with their cash flow when times were bad. During good and bad times I have been extremely frugal with my spending and have lived through major disruption of two significant extensions, a lot of which I have done myself in order to maximise the value of my house. Whilst accepting reduced hours this year it has put my income into a bracket where with a family I am entitled to benefits although given that I have been prudent and have savings I am entitled to less than I would be had I spent all my money in the past (or just hidden what I have).

I am now in the position where I could increase my hours but am loathe to do so before the next tax year because I will face a marginal effective tax rate of 72% which I feel means my time is better spent with my family - after all those on 6x my salary seem to think a 50% tax rate is enough of a disincentive to leave the country. You may turn down everything the state offers you (avoiding all public services such as GPs, schools, bin collections etc) but I will take what I am 'deemed' to be eligible for as I have paid in a lot of money over the last 20 years.

Graham_Devon

Oh well, if thats the case, and you are choosing the benefits route, then theres little advice I can take from that! I can't take that route.

michaels

But you could do matched betting which gives between 100 and 200 per month and isn't taxable, maximise cashback (for example my mobile usage is completely free) and take advantage of all the bank account switching freebies, stooze etc.

Also I always save for things rather than buy on credit and make sure I maintain my bank accounts carefully to avoid any charges plus a myriad other money saving things everyday really does make my money go a lot further, and living this way when income is plentiful as well as more sparse really eats in to mortgage debts as well reducing interest payments.

Graham_Devon wrote: »

Oh well, if thats the case, and you are choosing the benefits route, then theres little advice I can take from that! I can't take that route.

Graham_Devon

Got to admit, the green eyed monster is making an appearance. Think timing helped you immensley. Buying a house in 2001 (not sure how you got the 10-11x mortgage, but there we go) and seeing that increase 300%, choosing whether to work more hours or not, having your other half as a stay at home mother, while recieving taxpayer support while not even ill.

Therefore, as that monster is making an appearance, I think it's best I shut up! I don't want to offend you, though I'm sure you are aware how offensive your situation could come across. Just found it incredible considering I have the same sort of income, but now know the reasons.

greggymagic

michaels wrote: »

I am now in the position where I could increase my hours but am loathe to do so before the next tax year because I will face a marginal effective tax rate of 72% which I feel means my time is better spent with my family - after all those on 6x my salary seem to think a 50% tax rate is enough of a disincentive to leave the country. You may turn down everything the state offers you (avoiding all public services such as GPs, schools, bin collections etc) but I will take what I am 'deemed' to be eligible for as I have paid in a lot of money over the last 20 years.

I'm afraid this is where the system is mucked up - the benefits aren't there to subsidise you 'only working 2 days a week"

What about all the people working 5 days a week, paying tax to give you this subsidy?

I know you say you've paid in a lot but that's not really the point is it. If we all pay in and then take it back out again it wouldn't work - as it doesn't seem to work now.

greggymagic

michaels wrote: »

If I didn't have any pesky assets I would get a lot more handouts like council tax benefits etc However even without this my effective marginal tax rate is 72% making em very careful not to earn any more this year to the extent of utilising my pension.

When all the DKs reach school age then DW can go back to work and start to put a dent in the mortgage, I could also start working more than 2 days a week again if the worst came to the worst.

This made me laugh - "Pesky Assets"

If it wasn't for the fact that you've got 450k equity in your house you'd be entitled to more....... "Welfare state"