Why ISAs and saving just serve to penalise us all

DemiDee

Why is it that when we work hard and save hard, we get penalised for it? Are savings, and their new 'attractive' counterpart in the form of ISAs REALLY worth your while? Wouldn't it just be better to take the lot out each time we get paid?

When we have savings or ISAs, we are effectively telling the government how much we have, which means that over a certain amount we...

..don't get Jobseeker's allowance if we find ourselves out of work

..don't get certain benefits, and with others, it's greatly reduced

..aren't entitled to free legal advice other than at the CAB, which is often worthless and isn't professional

..have to pay for care - or even a care home - if we get sick


So, for the amount of interest you get in saving through a bank, is it REALLY worth it in the long term?

dunstonh

Why is it that when we work hard and save hard, we get penalised for it?

You dont.

.don't get Jobseeker's allowance if we find ourselves out of work

..don't get certain benefits, and with others, it's greatly reduced

..aren't entitled to free legal advice other than at the CAB, which is often worthless and isn't professional

..have to pay for care - or even a care home - if we get sick

Do you really want the living standard that goes with that sort of requirement to get those things?
Do you fancy spending the tail end of your life in local authority care? That alone should be enough to make you want to save for that rainy day.

qpop

DemiDee wrote: »

Why is it that when we work hard and save hard, we get penalised for it? Are savings, and their new 'attractive' counterpart in the form of ISAs REALLY worth your while? Wouldn't it just be better to take the lot out each time we get paid?

When we have savings or ISAs, we are effectively telling the government how much we have, which means that over a certain amount we...

..don't get Jobseeker's allowance if we find ourselves out of work

..don't get certain benefits, and with others, it's greatly reduced

..aren't entitled to free legal advice other than at the CAB, which is often worthless and isn't professional

..have to pay for care - or even a care home - if we get sick


So, for the amount of interest you get in saving through a bank, is it REALLY worth it in the long term?

Short answer: Yes.

Next question?

Newly_retired

"aren't entitled to free legal advice other than at the CAB, which is often worthless and isn't professional"
As a CAB adviser I reject this. We are fully trained, work to high professional standards, and our information sources are second to none and updated all the time.
I am sorry if you have had a bad experience at your CAB. Maybe the information or advice you received was not what you wanted to hear?

pqrdef

I can foresee some of the public sector unions advising their lower-paid members that their pensions aren't worth having now. They weren't before, but inertia ruled. It may have been a mistake not to let that sleeping dog lie.

wazza24

To stop the government knowing what you get paid you would have to be paid cash in hand. not to many legit employers around willing to do that. and even then they would still have to pay your Tax.

middlepuss

No doubt there are some who choose to bump along the bottom - not saving, knowing the state will stop them going hungry etc.

But you probably won't find much sympathy for that lifestyle choice on this Board. Try the Benefits Board.

DemiDee

Newly_retired wrote: »

"aren't entitled to free legal advice other than at the CAB, which is often worthless and isn't professional"
As a CAB adviser I reject this. We are fully trained, work to high professional standards, and our information sources are second to none and updated all the time.
I am sorry if you have had a bad experience at your CAB. Maybe the information or advice you received was not what you wanted to hear?

Being given the wrong appeals form which clearly stated 'this is not to be used for appeals', (and this being blamed on failing eyesight!) followed by the wrong information on Jobseekers' Allowance (which I had to query before the mistake was accepted), interspersed with the answer to pretty much every question being 'I don't know' means you could say that, yes, I WAS given advice that I didn't want to hear. Just because you worked to high professional standards and have information sources second to none doesn't mean that every advisor in the country comes up to that standard nor uses the facilities available. Giving out the wrong form and blaming it on failing eyesight doesn't seem like 'high professional standards' to me.

Credit-Crunched

Sorry if the FREE advice and time and energy from countless volunteers up and down the country is not up to your standards.

I know a great solicitor that could have helped you (£300 later).

In answer to your earlier ramblings yes ISA's are worth it, a number without 20% taken off is bigger than a number with 20% taken off. Ergo you get more money, for doing nothing. Thats the kind of logic I like.

evenasus

DemiDee wrote: »

So, for the amount of interest you get in saving through a bank, is it REALLY worth it in the long term?

Well, even with interest rates at an all time low, last year I received over £11K net interest from ISAs & savings accounts.

Are you saying I should forego this interest?
And if so, what else should I do with my savings?

DemiDee

Credit-Crunched wrote: »

Sorry if the FREE advice and time and energy from countless volunteers up and down the country is not up to your standards.

In answer to your earlier ramblings yes ISA's are worth it, a number without 20% taken off is bigger than a number with 20% taken off. Ergo you get more money, for doing nothing. Thats the kind of logic I like.

I presume that the kind of advice I spoke of above up to YOUR standards then, Credit Crunched? Or is it that when something's free, it's OK to be misleading or simply terrible? Also, I'm not sure why you feel that the person I saw was a volunteer. Many CAB staff are currently paid - up to 7000 staff across the country, if I'm correct.

Clearly, my ramblings above left you confused as to the intention of my post. I wasn't disputing the fact that 20% for doing nothing feels satisfying, but rather warning that if you fall on hard times and you save savings, they aren't going to last very long, and you'll be penalised for having saved at all. Better to spend it as you're paid IMHO.