How much to live on

Plasticman

Nebulous2 said:

LL_USS said:

Hope everyone has had a good weekend. 

Can't wait  to see the outcome of budget on 26 Nov. 2% income tax rise predicted. I am wondering what are the ways to soften the impact of such a rise. I still have saving leftover each month - I could put more into volunteer contribution to pension but this would only reduce the absolute amount. It could be years till there's any reduction back again to the current rates....

There is always lots of speculation about budgets. Predictions I have seen are +2% on Income tax and -2% on national insurance, which balances out for people in work who are below state pension age, but not for those who live off unearned income. 

On an unrelated note, I've made my 30 Santander payments, by splitting shops, and paying for items we would normally use a different method to pay for.

I paid for individual onions in Tesco 16,17,17 and 19 pence. The young member of staff wandered over. "Are you paying for each of these onions separately?"  Me "Yes - I have a new bank account, which will pay me if I make 30 debit card payments." "Cool, I'd do the same myself, I just wondered what you were doing." 

I've avoided the speculation so far but the income tax / NI suggestion is certainly getting well established! If it happens then I hope it will be accompanied by a higher personal allowance for those over state pension age. That would be a win for the government as there is a lot of negativity about people who only get the basic state pension getting drawn into paying tax. It also seems very unfair to hike income tax on pensioners with low incomes and little opportunity to increase them.

Albermarle

LL_USS said:

Hope everyone has had a good weekend. 

Can't wait  to see the outcome of budget on 26 Nov. 2% income tax rise predicted. I am wondering what are the ways to soften the impact of such a rise. I still have saving leftover each month - I could put more into volunteer contribution to pension but this would only reduce the absolute amount. It could be years till there's any reduction back again to the current rates....

I read many years ago ( I think in the Sunday Telegraph) that due to the changing age profile of the population in the UK, ( and many other Western countries) it would be necessary to regularly increase tax on the static number of working age people, to pay for the increasing proportion of older people, needing pensions, healthcare, social care etc.
OK there are many other factors at play, but this underlying demographic change means it is unlikely that the overall tax burden will ever go into reverse, although no doubt there will be some tinkering around the edges.

Humboldt

Nebulous2 said:

It's the beginning of a new month, and I've been doing my sums, so a quick update here. As you may remember, after an expensive year last year I intended to try to live on my income this financial year. 

The first 5 months of the financial year saw me with a £2200 deficit and a plan to claw that back over the remainder of the year. I've pulled back £1000 since then, £300 in September and £700 in October, so I'm now only £1200 off a balanced budget. 

It has been a good Month.. A further £200 from doing Surveys and £185 in interest from a regular saver. Still to come I have lined up £220 in cashback and a £100 Amazon voucher,  to be paid early next year. 

Expenditure this month has included £345 in vehicle tax, caravan insurance, and a deposit on a holiday. In September I also paid £380 for a vehicle service. So it hasn't been because of very low spending months, I've had expenditure, but income has exceeded it. 

While I'm only updating on my current account, not our capital, I'm surprised to see how well our investments have done this month as well. There has been a lot of talk about a bubble, people are pulling money out of the market because they are worried about a drop, and there have been a couple of wobbles reported in the press, around AI and tariffs. I knew things had continued to rise, but pulling it all together I'm surprised at how good a month it has been. 

Several months ago I put some money into gilts, rather than funds. They haven't shared in the growth equities have had since I bought them, but they have also had a better month this month. I'm expecting the budget to go some way to calming the bond markets, so I'm looking for a gain there next month as well. 

Thanks for the update @Nebulous2.  I find it both interesting and useful to have an insight into how others budget for, and during retirement.  We too had various car related costs to pay last month, and it reminded us how useful it is to have a savings pot for such expenses.  I hope that you are finding your efforts rewarding and somewhat reassuring.  

LL_USS

@Nebulous2 @Plasticman @Albermarle thank you. 

I am hoping for the 2 up 2 down scenario so it could be fine if I still keep on putting anything over the 50,270K taxable income to pension. And hope others are not badly impacted somehow. 

Organgrinder

LL_USS said:

@Nebulous2 @Plasticman @Albermarle thank you. 

I am hoping for the 2 up 2 down scenario so it could be fine if I still keep on putting anything over the 50,270K taxable income to pension. And hope others are not badly impacted somehow. 

Well it looks like the iceberg has been avoided!

Murphybear

Albermarle said:

LL_USS said:

Hope everyone has had a good weekend. 

Can't wait  to see the outcome of budget on 26 Nov. 2% income tax rise predicted. I am wondering what are the ways to soften the impact of such a rise. I still have saving leftover each month - I could put more into volunteer contribution to pension but this would only reduce the absolute amount. It could be years till there's any reduction back again to the current rates....

I read many years ago ( I think in the Sunday Telegraph) that due to the changing age profile of the population in the UK, ( and many other Western countries) it would be necessary to regularly increase tax on the static number of working age people, to pay for the increasing proportion of older people, needing pensions, healthcare, social care etc.
OK there are many other factors at play, but this underlying demographic change means it is unlikely that the overall tax burden will ever go into reverse, although no doubt there will be some tinkering around the edges.

Sadly my brother is in a care home with Alzheimer’s.  His wife died suddenly as I am his only close relative will be taking over the management off his affairs.  One thing that shocked me was the cost of his care home.  

Sadly my brother is in a care home with Alzheimer’s.  His wife died suddenly and as I am his only close relative will be taking over the management off his affairs.  One thing that shocked me was the cost of his care home.  It’s nearly £1800 a week🙀. I thought that was probably top end but after a lot of research I’ve found out that those sort of costs are common.  At the moment Social Services are paying the but when I arrange for his house to be sold that will fund it but it’s a small house in not very good condition so the money won’t last long.

And people wonder why council tax is so high 

Organgrinder

Murphybear said:

Albermarle said:

LL_USS said:

Hope everyone has had a good weekend. 

Can't wait  to see the outcome of budget on 26 Nov. 2% income tax rise predicted. I am wondering what are the ways to soften the impact of such a rise. I still have saving leftover each month - I could put more into volunteer contribution to pension but this would only reduce the absolute amount. It could be years till there's any reduction back again to the current rates....

I read many years ago ( I think in the Sunday Telegraph) that due to the changing age profile of the population in the UK, ( and many other Western countries) it would be necessary to regularly increase tax on the static number of working age people, to pay for the increasing proportion of older people, needing pensions, healthcare, social care etc.
OK there are many other factors at play, but this underlying demographic change means it is unlikely that the overall tax burden will ever go into reverse, although no doubt there will be some tinkering around the edges.

Sadly my brother is in a care home with Alzheimer’s.  His wife died suddenly as I am his only close relative will be taking over the management off his affairs.  One thing that shocked me was the cost of his care home.  

Sadly my brother is in a care home with Alzheimer’s.  His wife died suddenly and as I am his only close relative will be taking over the management off his affairs.  One thing that shocked me was the cost of his care home.  It’s nearly £1800 a week🙀. I thought that was probably top end but after a lot of research I’ve found out that those sort of costs are common.  At the moment Social Services are paying the but when I arrange for his house to be sold that will fund it but it’s a small house in not very good condition so the money won’t last long.

And people wonder why council tax is so high 

So sorry to hear that. 

I know money isn't what is important, but it's so sad that those who have paid their taxes don't get the same help as those who haven't paid.

Albermarle

Organgrinder said:

Murphybear said:

Albermarle said:

LL_USS said:

Hope everyone has had a good weekend. 

Can't wait  to see the outcome of budget on 26 Nov. 2% income tax rise predicted. I am wondering what are the ways to soften the impact of such a rise. I still have saving leftover each month - I could put more into volunteer contribution to pension but this would only reduce the absolute amount. It could be years till there's any reduction back again to the current rates....

I read many years ago ( I think in the Sunday Telegraph) that due to the changing age profile of the population in the UK, ( and many other Western countries) it would be necessary to regularly increase tax on the static number of working age people, to pay for the increasing proportion of older people, needing pensions, healthcare, social care etc.
OK there are many other factors at play, but this underlying demographic change means it is unlikely that the overall tax burden will ever go into reverse, although no doubt there will be some tinkering around the edges.

Sadly my brother is in a care home with Alzheimer’s.  His wife died suddenly as I am his only close relative will be taking over the management off his affairs.  One thing that shocked me was the cost of his care home.  

Sadly my brother is in a care home with Alzheimer’s.  His wife died suddenly and as I am his only close relative will be taking over the management off his affairs.  One thing that shocked me was the cost of his care home.  It’s nearly £1800 a week🙀. I thought that was probably top end but after a lot of research I’ve found out that those sort of costs are common.  At the moment Social Services are paying the but when I arrange for his house to be sold that will fund it but it’s a small house in not very good condition so the money won’t last long.

And people wonder why council tax is so high 

So sorry to hear that. 

I know money isn't what is important, but it's so sad that those who have paid their taxes don't get the same help as those who haven't paid.

It is a bit of an assumption that all people with a low level of assets have not paid their taxes.
I am sure there are very many low paid workers who have paid taxes, but have very little in the way of assets.

louby40

I'm coming up to the end of my first 3 months of my retirement from teaching. I've been so surprised how little I spend, I've even been able to save too. I have been doing some ad hoc  supply teaching, just a couple of days a week, it gives me the best bits of teaching without all the politics and stress. 

As part of my retirement I had a decent ( to me anyway 😂) lump sum and I've not dipped into that at all. 

We have been to Krakow for a long weekend and have 3 big trips planned next year too.

I am loving the easier, less rushed way of life - for me I totally made the right decision. 

Smudgeismydog

I’m so glad it’s working out so well for you @louby40. I was surprised by how little we spend day to day, to be honest that’s why I’m comfortable with paying myself each month, as I know I would be saving otherwise.
It does take a while to adjust from accumulation to decumulation.