It's time to start digging up those Squirrelled Nuts!!!!

Bravepants

Sea_Shell said:

Sorry folks, but it looks like the current economic crisis is my fault...according to the BoE.  

http://digitaleditions.telegraph.co.uk/data/1151/reader/reader.html?social#!preferred/0/package/1151/pub/1151/page/91/article/NaN

Yeah, blame the disatisfied workers who want to sock it to "The Man", but I like the way the guy casually says as an aside, "Oh yeah and also the £450B we created out of thin air." 

njm123

That's a narrative that's been around and building for a while.    

Early retirees are becoming a minority group that's getting some focus from politicians, the media and various institutions and think tanks recently.    Probably for some politicians it's a case of looking to spread the blame for the economic difficulties to not just be about the effect's of how they reacted to event's like Brexit/Covid/Ukraine etc.  For other politicians and the media etc. there's a degree of just pointing out facts and a little bit of stirring along the line's of "there's a group that's not contributing enough now so remember them when looking for tax changes to fill the hole, not just workers"

As someone in a similar position to the OP I'm hoping that no influential politician really get's a bee in their bonnet about it and start using sticks (via the tax system or deliberately keeping inflation high) to discourage people from retiring early and try and push some portion back to work as there finances tighten.     

m_c_s

This does demonstrate the need to plan very carefully when retiring early. Sheltering in ISAs may become more important in future years especially after the next general election when, which ever party gets in government, there will be an inevitable focus on generating more tax revenue.
The drag of stagnant income tax allowances will now start to put a strain on SIPPs and who knows what will happen with tax free lump sums.
Also State Pension age will no doubt face further scrutiny and possibly 68 may come sooner to offset the cost of this year's 10% increase.
A balanced plan is required going forward.

Sea_Shell

Until they decide to change ISA rules, or tax main residences. 😲😱

At the moment I can't see how tax measures could impact us (too) much, even if all allowances are frozen.

I realise that's a bit "me, me, me" and I am aware of the wider issues.

michaels

I wonder if they might decide that the no NI on 'unearned income' is strictly a 'pension age' benefit - this would catch any of the income that the press see as 'dodging tax' (lettings, taking income as profit rather than income etc) and of course pensions taken before SPA.  The easy justification is that such people would still be eligible for the 'benefits' that NI supposedly pays for.

Second thoughts perhaps I should delete this post before it gives anyone ideas.....

Time4T_Accounts

A penny on the rates of income tax, to make up for scrapping the 1.25p National Insurance increase?

Roger175

This is something very topical in our household recently. My wife has recently retired (just before her 59th b'day). She was a high level teaching assistant, but felt more and more stressed and put-upon-on. She hadn't had a meaningful pay rise in over 10 years and just got to the point where we were able to say stuff it!. Stress and low wages aside, she actually loved the job and would have happily carried on for a few years, but the feeling of being totally unappreciated just tipped her over the edge in the end. I see parallels with a lot of other sectors, and the talk of public sector pay restrictions is only going to make things worse. Unfortunately those left in the workplace, who don't have the luxury of leaving, are then put under even further pressures as employer's struggle to fill the vacancies. They haven't been able to fill my wife's position, not surprising when you consider you can earn more working in Tesco without the stress. How all this is going to get resolved, I've no idea, but the problem at the moment is the Government just assumes everyone wants to put up with all their s**t for unacceptable wages.
Covid was clearly a catalyst which showed people there was more to life and that the work/life balance had swung the wrong way, but I think a lot of people would have reached the same conclusion in the end. Over ten years of austerity doesn't come without consequences and it seems ripe to now blame early retires for a problem which has been 10 or 12 years in the making.

michaels

Roger175 said:

This is something very topical in our household recently. My wife has recently retired (just before her 59th b'day). She was a high level teaching assistant, but felt more and more stressed and put-upon-on. She hadn't had a meaningful pay rise in over 10 years and just got to the point where we were able to say stuff it!. Stress and low wages aside, she actually loved the job and would have happily carried on for a few years, but the feeling of being totally unappreciated just tipped her over the edge in the end. I see parallels with a lot of other sectors, and the talk of public sector pay restrictions is only going to make things worse. Unfortunately those left in the workplace, who don't have the luxury of leaving, are then put under even further pressures as employer's struggle to fill the vacancies. They haven't been able to fill my wife's position, not surprising when you consider you can earn more working in Tesco without the stress. How all this is going to get resolved, I've no idea, but the problem at the moment is the Government just assumes everyone wants to put up with all their s**t for unacceptable wages.
Covid was clearly a catalyst which showed people there was more to life and that the work/life balance had swung the wrong way, but I think a lot of people would have reached the same conclusion in the end. Over ten years of austerity doesn't come without consequences and it seems ripe to now blame early retires for a problem which has been 10 or 12 years in the making.

Apologies SeaShell

The govt is not some separate being from the planet Zog, it channels money from taxpayers (public and private sector) to public sector workers.  It is a 'zero sum' game, public sector workers cannot be better off overall without private sector workers being worse off. 

Currently the increase in external prices for energy etc mean the whole country is worse off so it is just a question of how that pain is shared around.  If the public sector through their union power and strikes end up with wage rises that keep up with inflation, then by definition those in the private sector must take even more of a hit in living standards.

waveydavey48

Just read the article in the link.

It's a bitter Pill.

Roger175

michaels said:

Apologies SeaShell

The govt is not some separate being from the planet Zog, it channels money from taxpayers (public and private sector) to public sector workers.  It is a 'zero sum' game, public sector workers cannot be better off overall without private sector workers being worse off.

Currently the increase in external prices for energy etc mean the whole country is worse off so it is just a question of how that pain is shared around.  If the public sector through their union power and strikes end up with wage rises that keep up with inflation, then by definition those in the private sector must take even more of a hit in living standards.

Totally agree with you and I'm not saying I know what the answer is!, but I sure know that more of the same old austerity that has led to this situation isn't it.

SeaShell, my apologies also, don't mean to interrupt your excellent thread!