Why ISAs and saving just serve to penalise us all

Sinvegas

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Ifts

DemiDee wrote: »

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

Although already mentioned by other posters, I had to comment on the above.

From the two times I've used C.A.B, I have been more than happy with their advice and help, they went out of their way to help me on both the occasions I needed their help.
Once was when my car got written off, the accident was not my fault and the my insurance company was trying to settle at 6.8K for the car when it was worth more but they refused to raise the offer. After receiving advice from C.A.B and following their recommendation as what to do, I managed to get 10K from my insurance company for the same car.

Sorry that you have had a bad experience. But I really do believe they provide an important and valuable service up and down the country (and its free!).

Thanks to all the volunteers out there that lend a hand to run it.

DemiDee

margaretclare wrote: »

Contribution-based JSA lasts for 6 months, during which time it is assumed you'd have looked for, and found, another job.

Thank you for this information, Margaret. So, this is yet another thing that the guy at the CAB got wrong when he told me that savings over £16,000 would preclude someone from getting JSA. I even questioned that, and still he confirmed that any savings over that amount would disqualify one from applying for JSA. The only advice he gave me when I left that room was to maybe seek some advice from..get ready for it...'Business Link', since 'self employment is effectively a business.'

margaretclare

DemiDee wrote: »

Thank you for this information, Margaret. So, this is yet another thing that the guy at the CAB got wrong when he told me that savings over £16,000 would preclude someone from getting JSA. I even questioned that, and still he confirmed that any savings over that amount would disqualify one from applying for JSA. The only advice he gave me when I left that room was to maybe seek some advice from..get ready for it...'Business Link', since 'self employment is effectively a business.'

You could have found that out by enquiring at the local JobCentrePlus, who took over a lot of the functions of the Social Security offices. Contribution-based JSA lasts for 6 months, assuming you've made the required number of contributions in the relevant year. When it expires, that's when income-based JSA kicks in, so if you haven't found a job within 6 months you go on to means-tested benefits and you get asked about savings. Actually I thought it was £6K rather than £16K, but I could be wrong.

darkpool

evenasus wrote: »

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?

invest somewhere where your savings will keep up with inflation?

thenudeone

DemiDee wrote: »

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

Depends whether you would rather spend it all on a lavish lifestyle now and then possibly have to live much more modestly on state benefits if you ever hit hard times.

Would you rather be in a position to have a comfortable family car for all your working life, or a Ferrari for 15 years and no car at all for the rest?

Seriously - there are ways to deal with many of the issues (eg: using pensions, buying "life insurance" policies which are really just unit trusts, etc.) many of which don't rely on expensive tax accountants or advisers.

You make your choices. I'll make mine. I know which position I'd rather be in.

Biggles

DemiDee wrote: »

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

So your actual question is really: "If I don't put it in an ISA, is it easier to hide the money, lie to the various government departments and councils, and claim money I'm not entitled to?"

The answer's still, "No".

C_Mababejive

dunstonh wrote: »

You dont.



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.

I can understand the views expressed b y the OP and also your reply but i think it depends where on the spectrum you lie.

I could speculate that Dunstonh is very savvy ,has lots of money ,his own home and retirement is looking good and he will have plenty of wonga to enjoy it.


For many other people,they will be toward the lower/mid end of the spectrum where they have flogged it all their lives and yet when they retire,they will actually be the same or worse off than their less industrious neighbours.

Its plain to see all round.

Why only the other day i was in a nice three bed semi owned by a housing association and let out to a young woman and her brood. The furnishings and content were much higher than i have seen in many working homes. She had just had her free solar panels fitted and was already reaping the benefits.

If your in a marginal /lower tier income and working,sometimes it does pay to throw your hands in the air and give up.

scotsbob

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?

I used the CAB once. My straightforward, factual, question was not answered and I got a lecture on morality from a guy who should have retired many years previously. Went to local library and got the answer.

In recounting this to other people I have heard similar accounts.

Most certainly worthless and not professional.

If you work for CAB then instead of coming here and "rejecting" peoples experiences, get your organisation to do something about it.