Planing for getting older, what have you done?

expatasia

seven-day-weekend wrote: »

You each have a tax allownance but if one of you earns all the money, only one lot of £8.5k applies. It is an individual separate allowance, not as a couple.

So common sense to have joint (bank) savings accounts then?

seven-day-weekend

If (for example) one of you has income from all sources of £20k, they will pay tax on the amount above their tax allowance (say £8.5k) and will pay tax on interest from savings. If the other person has income from all sources of £6.5k, they will not pay tax at al, because their income is below their allowance. Myself and my husband are in this position (although with different amounts of money!). He pays tax, I do not. So I personally think it is better to have separate accounts.

expatasia

seven-day-weekend wrote: »

If (for example) one of you has income from all sources of £20k, they will pay tax on the amount above their tax allowance (say £8.5k) and will pay tax on interest from savings. If the other person has income from all sources of £6.5k, they will not pay tax at al, because their income is below their allowance. Myself and my husband are in this position (although with different amounts of money!). He pays tax, I do not. So I personally think it is better to have separate accounts.

So the 'ideal' being the 'other person' pulling in no more than 8.5k to avoid tax.

Financial products held in joint names yielding a total of 17k per yr wld mean no tax due whatsoever, right? Dunno if one could live on that though. So long since we lived in the UK...

seven-day-weekend

expatasia wrote: »

So the 'ideal' being the 'other person' pulling in no more than 8.5k to avoid tax.

Financial products held in joint names yielding a total of 17k per yr wld mean no tax due whatsoever, right? Dunno if one could live on that though. So long since we lived in the UK...

We live on about £14k a year. However we have no mortgage now. It obviously depends upon where you live, but I think £17k is perfectly do-able.

I don't understand what you meant about 'financial products in joint names...means no tax'. I think it would depend upon the product!

expatasia

seven-day-weekend wrote: »

I don't understand what you meant about 'financial products in joint names...means no tax'. I think it would depend upon the product!

Yes, it would.

expatasia

seven-day-weekend wrote: »

We live on about £14k a year. However we have no mortgage now. It obviously depends upon where you live, but I think £17k is perfectly do-able.

Don't need to live near London.

Let's see ...minimum overheads would include say 1k in utility bills, council tax (cheaper up north?), how much do you spend on running a car per year? Sorry if that's too personal a question, or what would the average family pay? What does the weekly s/market shop come to nowadays? Cheers.

Errata

expatasia wrote: »

Don't need to live near London.

Let's see ...minimum overheads would include say 1k in utility bills, council tax (cheaper up north?), how much do you spend on running a car per year? Sorry if that's too personal a question, or what would the average family pay? What does the weekly s/market shop come to nowadays? Cheers.

The weekly heating cost is very much dependant on how people live: mine is twice what my neighbour's is but I prefer not to have to sit around the house bundled up in layers of clothes and covered in blankets. Running costs for a car are dependant on the make and model, how much it's used, how it's driven, it's age, No Claims Bonus percentage. Supermarket shop depends on lifestyle and which supermarket is used: Farmfoods will be considerably cheaper than Waitrose but choice and quality are streets apart.
I can't find the link now, but Age Concern research suggests a healthy diet for a retired person would cost c£30pw.

expatasia

Errata wrote: »

I can't find the link now, but Age Concern research suggests a healthy diet for a retired person would cost c£30pw.

Wow, that's cheap. From what age do retirees stop paying for prescriptions, public transport etc? Thanks.

seven-day-weekend

expatasia wrote: »

Wow, that's cheap. From what age do retirees stop paying for prescriptions, public transport etc? Thanks.

At the women's retirement age, which is risingyear by year to match mens'. At the moment I think it is 62. Eventually it will be 65 for all, rising to 66 shortly afterwards.

Savvy_Sue

expatasia wrote: »

So common sense to have joint (bank) savings accounts then?

Depends, there are advantages and disadvantages.

seven-day-weekend wrote: »

At the women's retirement age, which is risingyear by year to match mens'. At the moment I think it is 62. Eventually it will be 65 for all, rising to 66 shortly afterwards.

I wouldn't bank on it stopping there, either.