Don't know what to think about this attitude

atush

Just make sure you avoid him once you are both retired as he will try to sponge off you lol.

[Deleted User]

elantan wrote: »

when he has said and how will you live when you retire, their answer has been word to the effect of " i have worked all my days, and got nothing, others dont work and seem to manage so i will join their ranks and claim for benefits, rent allowance etc "

As a young person paying a significant amount of tax on my income this sort of attitude is very frustrating.

The tax system works under the assumption that most people will never need to take benefits, that most people will be paying into the system and the people that are paying in are paying for the people that can't.

Most people that are approaching retirement with no savings, no pension and no assets are most likely the people that have never paid much tax at all, these people do not have any magical bucket of money that they've given to the government, the money that they have given is enough to pay for basic services that they have used throughout their lives.

I'm a British citizen and I choose to live in this country, I have the opportunity to move to America if I like and would do it tomorrow if I wanted to, however America is much more focused on the individual and I like how England is a country built around helping each other. My taxes are high but that's okay because sick people, people down on their luck, people that haven't made the best decisions and anyone else that needs help can get help...

Every citizen needs to be taught how the tax and benefits systems work, there is not a big pot of money that everyone has paid into, when someone that has worked for 20 years claims benefits the money isn't coming from the tax they paid, it's coming from the tax we pay right now.

I will happily pay tax beyond what is needed for services if it's going to help people that need to be helped but people showing current tax payers a lack of respect leaves a very bitter taste. Fortunately they're the minority and most people understand that we're all in this together.

AlwaysLearnin

atush wrote: »

Just make sure you avoid him once you are both retired as he will try to sponge off you lol.

:rotfl:

I might send him a postcard from our holidays...:D

AlwaysLearnin

I'm not sure on the legacy thing either, as hopefully I'll be around long enough that my kids will be well settled in to their own lives before they inherit anything from me, so won't really be in need of it. With life expectancy on the increase, perhaps it's the (potential) grandchildren that could benefit more though I suppose. I'm more looking to be in a position to be able to give my kids opportunities should they arise. For example, my parents helped me to get on the property ladder, and I'll be forever grateful they did as it enabled me to get in just as it all took off.

As for personal plans later in life, I've got a couple more places I'd like to travel to before my times up, but other than that, those "simple pleasures" you mention sound pretty good to me!

lvader

atush wrote: »

6% a year early reduction is brutal! Surely your friend knows that he will permanently reducing his pension by 60% to take it at 55? Can he live on 40% of the amt his pension will be at 65? If he is spending all now, probably not.

If no one has asked him if he can live on 40% of his pension, perhaps one more (smug ;-) try is in order. Work the math for him, then kick him to the curb.

Are you taking into account tax allowances, drawdown, recycling etc?
I'm planning to retire at 55 but I'm not expecting anywhere near the drop you are talking about.

jem16

lvader wrote: »

Are you taking into account tax allowances, drawdown, recycling etc?
I'm planning to retire at 55 but I'm not expecting anywhere near the drop you are talking about.

It's the actuarial reduction on a Defined Benefit scheme for accessing the pension 10 years before the scheme retiral date.

bigfreddiel

lvader wrote: »

Are you taking into account tax allowances, drawdown, recycling etc?
I'm planning to retire at 55 but I'm not expecting anywhere near the drop you are talking about.

the cs classic scheme is reduced by 5% for each year below the retirement age - currently 60 - to be sp age from apr 2015

its a 25% reduction if you take it at 55 - this is because you'll be getting 60 payments mare than someone retiring at 60

sadly the converse isn't true - i.e. 5% extra for each year after 60!

cheers

fj

bigfreddiel

and another point - have you ever noticed that people who win large amounts (£10k+) when asked what they will spens it on the answers are always:

get married
go on holiday
buy a car

and thats it

never any mention of saving/investing/pensions -too boring i guess

elantan

I do remember one guy that won the 1 million on that quiz show Chris Tarrant did ( never watched the show so can't remember its name, watched him being interviewed about it though)

When asked what he intended to spend his winnings on he replied TIME, that always stuck with me, he said he wanted to spend time doing what he loved with those he loved. He talked about work etc and how it can take over your life, I hope he managed to get his wish

Perfect answer in my opinion

AlwaysLearnin

atush was commenting on the specific case in point, being a defined benefit scheme with a 6% actuarial reduction for each year taking the pension before age 65.

There are numerous reasons why may not apply to you/others (different scheme rules; in DC instead etc), and how to mitigate (AVC's; defer and live off savings etc)