what's the worst that can happen?

atush

jamels2 wrote: »

It sure is interesting, as I'm thinking when I'm old one day will I really be materialistic? Will I really need lots of money? I already think this way, and I'm only in my 30s. All I really need is warmth, food, exercise and socialising. Is it worth working like mad now to try and save something up to have a slightly better quality of life later on?

If you are materialistic now, you will be then. So the SP won't be enough for you I am sure.

Forced to move away from their friends and home to somewhere remote and smaller

Now, here's the thing. It isn't your home, you don't own it?

Why do those of us who own kill ourselves to afford to do so (esp in the early years)? So we don't have to move and can stay put (as long as we don't lose our jobs as then we lose our house AND HAVE to MOVE).

If you can't afford to buy in an area, and you can't afford to rent, you move. I know this isn't easy, but life isn't easy.

And don't get me going with the whole BedRoom tax thing. There are plenty of families who need houses and plenty of those whose families are gone but they have not downsized. I know there have been problems with the exemptions (from service people, to foster families and disabled children) but they seem to have caught up with these things now. And if not , we slam them until they do.

That is what real, earning non benefit people do. When our houses are too big, and our kids are gone, we downsize. but of course, they are our houses as we have actually paid for them.

It is not like we have no sympathy with those who are less fortunate, but we are also not willing to pay for their spare room in the London area. Or anywhere really.

a house for life is a great idea. And I hope to have one in a couple of years when my mtg is paid off. In the mean time I pay my taxes and there have been new council homes built in my area (with I presume our taxes).

stinktankcynic

If you own your own home you won't get council housing benefit, also a pension pot can easily be limited, reduced, locked up in the future. If you want a good retirement, you might as well save liquid assets, enjoy yourself in your 60's and 70's and then claim everything you can until you enter the nursing home.
Saving huge amounts in pensions is potentially dangerous. The government doesn't want you to be rich, it just wants you to be less of a burden, hence do the right thing and be auto enrolled.

atush

Says someone who has never saved a large pot of money, nor has seen a council funded home (you wouldn't send your worst enemy there).

You can get council TAX benefit if you own your home as a pensioner.

GhIFA

stinktankcynic wrote: »

If you own your own home you won't get council housing benefit, also a pension pot can easily be limited, reduced, locked up in the future. If you want a good retirement, you might as well save liquid assets, enjoy yourself in your 60's and 70's and then claim everything you can until you enter the nursing home.
Saving huge amounts in pensions is potentially dangerous. The government doesn't want you to be rich, it just wants you to be less of a burden, hence do the right thing and be auto enrolled.

In what way exactly?

grey_gym_sock

i wouldn't put a very high percentage of my capital inside a pension, because the rules might prevent my taking some of the money out as soon as i wanted to, and because the tax treatment might become unfavourable. putting a lower % in is perfectly sensible, because i will at least be able to use the money to finance my mid- to late retirement, which has to be financed somehow. the idea of spending everything and then falling back on benefits is frankly complete madness - if you have had the chance to build up any capital in the first place (which not everybody has).

i take it that the posters suggesting spending it all haven't built up any significant capital so far. if that's because they haven't earned much, then that's fair enough - though they could re-think their career choices. but if it's because they're spending money foolishly, and now trying to justify it, ...

zagfles

atush wrote: »

Says someone who has never saved a large pot of money, nor has seen a council funded home (you wouldn't send your worst enemy there).

How many people do you know who claim HB/LHA then? I know quite a few, and the vast majority live in accomodation that's perfectly OK.

zagfles

GhIFA wrote: »

In what way exactly?

Guess the PP was referring the high effective marginal tax rates on pensions for those on low incomes, due to the benefit tapers.

But should also remember that those on low incomes contributing to a pension can get very high effective tax relief, since pension contributions reduce income for tax credits, and 50% of the contribution for HB/LHA, and under UC (which will replace TC and HB/LHA) they'll be fully deductible.

stinktankcynic

atush wrote: »

Says someone who has never saved a large pot of money, nor has seen a council funded home (you wouldn't send your worst enemy there).

You can get council TAX benefit if you own your home as a pensioner.

If your on pension credit and have limited savings?

This bedroom tax thing is looking a bit bad for people not in one bedroom flats.

stinktankcynic

zagfles wrote: »

Guess the PP was referring the high effective marginal tax rates on pensions for those on low incomes, due to the benefit tapers.

But should also remember that those on low incomes contributing to a pension can get very high effective tax relief, since pension contributions reduce income for tax credits, and 50% of the contribution for HB/LHA, and under UC (which will replace TC and HB/LHA) they'll be fully deductible.

If your not getting tax credits then its not so good. Also, what I think is unfair with auto enrolled pensions is that the % cons should be on the full wage not everything above like £9k. They let non earners put £2880 in and get relief.

mark5

Will there be any pension credit in a few years?