Cutting hours better off?

R200

Emmia said:

R200 said:

Grumpy_chap said:

R200 said:

It’s so hard to work out if I would be better off all round cutting hours.

At the moment I earn £13hr x 30hrs per week.

There seems to be so many deductions on my payslip tax NI and a pension that I don’t want to pay into.

I think but I’m not sure if I reduce to 20hrs I wouldn’t pay any tax, I would also be able to opt out of compulsory pension which I don’t want to pay.

NI I don’t mind paying and also I get a tiny amount of UC and I think it would go up a lot if I reduced from 30 hours to 20.

but maybe UC would put pressure on me to work more

The future you will be very grateful for the compulsory pension.  Giving that up would also mean you lose out on the employer contributions.

Thanks for your post but regarding compulsory pension I hear most of these companies have unfunded liabilities and will struggle to pay out unless a lot more people decide to pay in just like a pyramid scheme. The reality is the global financial crisis is getting worse and instead of more people paying in more people are dropping out. This is why I also want to drop out as it’s a waste o f money if they can’t pay out when they are supposed to.

So what's your plan if / when you want to retire, without a works pension and the state pension isn't enough to sustain you?

Working until you drop? 

Just like most people we will have to reduce our outgoings to match our income. This is why MSE is such a help. TY MSE🙏

penners324

Ignore all that stuff about pensions.

Your employer scheme will very likely be a defined contribution pot. It is your money, it won't be underfunded.

Can't you increase your hours so get paid more?

Emmia

R200 said:

Emmia said:

R200 said:

Grumpy_chap said:

R200 said:

It’s so hard to work out if I would be better off all round cutting hours.

At the moment I earn £13hr x 30hrs per week.

There seems to be so many deductions on my payslip tax NI and a pension that I don’t want to pay into.

I think but I’m not sure if I reduce to 20hrs I wouldn’t pay any tax, I would also be able to opt out of compulsory pension which I don’t want to pay.

NI I don’t mind paying and also I get a tiny amount of UC and I think it would go up a lot if I reduced from 30 hours to 20.

but maybe UC would put pressure on me to work more

The future you will be very grateful for the compulsory pension.  Giving that up would also mean you lose out on the employer contributions.

Thanks for your post but regarding compulsory pension I hear most of these companies have unfunded liabilities and will struggle to pay out unless a lot more people decide to pay in just like a pyramid scheme. The reality is the global financial crisis is getting worse and instead of more people paying in more people are dropping out. This is why I also want to drop out as it’s a waste o f money if they can’t pay out when they are supposed to.

So what's your plan if / when you want to retire, without a works pension and the state pension isn't enough to sustain you?

Working until you drop? 

Just like most people we will have to reduce our outgoings to match our income. This is why MSE is such a help. TY MSE🙏

But, there is fundamentally a minimum "cost of living" i.e. money you must spend in order to live in a property (rent/mortgage... unless you've paid it off/maintenance) (/council tax/water bills/heating) + food (even cold value baked beans cost money). Money saving doesn't reduce costs to zero.

Personally, I'm not sure I'd want to rely solely on the state pension, and by not paying into the employer scheme you miss out on their contributions and tax relief on your contributions.

Strummer22

penners324 said:

Ignore all that stuff about pensions.

Your employer scheme will very likely be a defined contribution pot. It is your money, it won't be underfunded.

You should also have protection for your defined contribution pension under the FSCS.

Do not turn down free money just because you're worried that Royal London or Scottish Widows (or whoever your pension is with) might go bust. If you have that little trust in the banking system you might as well keep it all as cash under your mattress - but if we ever get to the point that such venerable institutions are allowed to go bust, the cash under the mattress has probably ceased to have any meaningful value too. 

xylophone

Is your workplace pension DB or DC?

Unwise enough to opt out of the pension scheme if DC but if DB......words fail me!

R200

Emmia said:

R200 said:

Emmia said:

R200 said:

Grumpy_chap said:

R200 said:

It’s so hard to work out if I would be better off all round cutting hours.

At the moment I earn £13hr x 30hrs per week.

There seems to be so many deductions on my payslip tax NI and a pension that I don’t want to pay into.

I think but I’m not sure if I reduce to 20hrs I wouldn’t pay any tax, I would also be able to opt out of compulsory pension which I don’t want to pay.

NI I don’t mind paying and also I get a tiny amount of UC and I think it would go up a lot if I reduced from 30 hours to 20.

but maybe UC would put pressure on me to work more

The future you will be very grateful for the compulsory pension.  Giving that up would also mean you lose out on the employer contributions.

Thanks for your post but regarding compulsory pension I hear most of these companies have unfunded liabilities and will struggle to pay out unless a lot more people decide to pay in just like a pyramid scheme. The reality is the global financial crisis is getting worse and instead of more people paying in more people are dropping out. This is why I also want to drop out as it’s a waste o f money if they can’t pay out when they are supposed to.

So what's your plan if / when you want to retire, without a works pension and the state pension isn't enough to sustain you?

Working until you drop? 

Just like most people we will have to reduce our outgoings to match our income. This is why MSE is such a help. TY MSE🙏

But, there is fundamentally a minimum "cost of living" i.e. money you must spend in order to live in a property (rent/mortgage... unless you've paid it off/maintenance) (/council tax/water bills/heating) + food (even cold value baked beans cost money). Money saving doesn't reduce costs to zero.

Personally, I'm not sure I'd want to rely solely on the state pension, and by not paying into the employer scheme you miss out on their contributions and tax relief on your contributions.

Yes this country is going downhill 

mate you saying there will be huge numbers of people living just above poverty level? Much larger numbers than we already have?

poppy12345

R200 said:

poppy12345 said:

If you reduce your hours when claiming UC you could be sanctioned but it will depend on your circumstances and why you want to reduce your hours.

How would UC know?

my payslip varies tremendously 

sometimes I need to book a lot of time off and only do 20 hours week but when I have no holiday days all month it works out about 30per week.

the month when I worked about 20hrs week I never had any sanctions and UC paid a lot more

Your employer reports your earnings to HMRC so yes they would know if your earnings suddenly reduced. Are you also aware that all changes need to be reported?

Emmia

R200 said:

Emmia said:

R200 said:

Emmia said:

R200 said:

Grumpy_chap said:

R200 said:

It’s so hard to work out if I would be better off all round cutting hours.

At the moment I earn £13hr x 30hrs per week.

There seems to be so many deductions on my payslip tax NI and a pension that I don’t want to pay into.

I think but I’m not sure if I reduce to 20hrs I wouldn’t pay any tax, I would also be able to opt out of compulsory pension which I don’t want to pay.

NI I don’t mind paying and also I get a tiny amount of UC and I think it would go up a lot if I reduced from 30 hours to 20.

but maybe UC would put pressure on me to work more

The future you will be very grateful for the compulsory pension.  Giving that up would also mean you lose out on the employer contributions.

Thanks for your post but regarding compulsory pension I hear most of these companies have unfunded liabilities and will struggle to pay out unless a lot more people decide to pay in just like a pyramid scheme. The reality is the global financial crisis is getting worse and instead of more people paying in more people are dropping out. This is why I also want to drop out as it’s a waste o f money if they can’t pay out when they are supposed to.

So what's your plan if / when you want to retire, without a works pension and the state pension isn't enough to sustain you?

Working until you drop? 

Just like most people we will have to reduce our outgoings to match our income. This is why MSE is such a help. TY MSE🙏

But, there is fundamentally a minimum "cost of living" i.e. money you must spend in order to live in a property (rent/mortgage... unless you've paid it off/maintenance) (/council tax/water bills/heating) + food (even cold value baked beans cost money). Money saving doesn't reduce costs to zero.

Personally, I'm not sure I'd want to rely solely on the state pension, and by not paying into the employer scheme you miss out on their contributions and tax relief on your contributions.

Yes this country is going downhill 

mate you saying there will be huge numbers of people living just above poverty level? Much larger numbers than we already have?

Auto enrollment is a thing for most people... So what does that tell you about one possible future scenario for the state pension?

R200

Emmia said:

R200 said:

Emmia said:

R200 said:

Emmia said:

R200 said:

Grumpy_chap said:

R200 said:

It’s so hard to work out if I would be better off all round cutting hours.

At the moment I earn £13hr x 30hrs per week.

There seems to be so many deductions on my payslip tax NI and a pension that I don’t want to pay into.

I think but I’m not sure if I reduce to 20hrs I wouldn’t pay any tax, I would also be able to opt out of compulsory pension which I don’t want to pay.

NI I don’t mind paying and also I get a tiny amount of UC and I think it would go up a lot if I reduced from 30 hours to 20.

but maybe UC would put pressure on me to work more

The future you will be very grateful for the compulsory pension.  Giving that up would also mean you lose out on the employer contributions.

Thanks for your post but regarding compulsory pension I hear most of these companies have unfunded liabilities and will struggle to pay out unless a lot more people decide to pay in just like a pyramid scheme. The reality is the global financial crisis is getting worse and instead of more people paying in more people are dropping out. This is why I also want to drop out as it’s a waste o f money if they can’t pay out when they are supposed to.

So what's your plan if / when you want to retire, without a works pension and the state pension isn't enough to sustain you?

Working until you drop? 

Just like most people we will have to reduce our outgoings to match our income. This is why MSE is such a help. TY MSE🙏

But, there is fundamentally a minimum "cost of living" i.e. money you must spend in order to live in a property (rent/mortgage... unless you've paid it off/maintenance) (/council tax/water bills/heating) + food (even cold value baked beans cost money). Money saving doesn't reduce costs to zero.

Personally, I'm not sure I'd want to rely solely on the state pension, and by not paying into the employer scheme you miss out on their contributions and tax relief on your contributions.

Yes this country is going downhill 

mate you saying there will be huge numbers of people living just above poverty level? Much larger numbers than we already have?

Auto enrollment is a thing for most people... So what does that tell you about one possible future scenario for the state pension?

Which is safer, state or private pension?

penners324

R200 said:

Emmia said:

R200 said:

Emmia said:

R200 said:

Emmia said:

R200 said:

Grumpy_chap said:

R200 said:

It’s so hard to work out if I would be better off all round cutting hours.

At the moment I earn £13hr x 30hrs per week.

There seems to be so many deductions on my payslip tax NI and a pension that I don’t want to pay into.

I think but I’m not sure if I reduce to 20hrs I wouldn’t pay any tax, I would also be able to opt out of compulsory pension which I don’t want to pay.

NI I don’t mind paying and also I get a tiny amount of UC and I think it would go up a lot if I reduced from 30 hours to 20.

but maybe UC would put pressure on me to work more

The future you will be very grateful for the compulsory pension.  Giving that up would also mean you lose out on the employer contributions.

Thanks for your post but regarding compulsory pension I hear most of these companies have unfunded liabilities and will struggle to pay out unless a lot more people decide to pay in just like a pyramid scheme. The reality is the global financial crisis is getting worse and instead of more people paying in more people are dropping out. This is why I also want to drop out as it’s a waste o f money if they can’t pay out when they are supposed to.

So what's your plan if / when you want to retire, without a works pension and the state pension isn't enough to sustain you?

Working until you drop? 

Just like most people we will have to reduce our outgoings to match our income. This is why MSE is such a help. TY MSE🙏

But, there is fundamentally a minimum "cost of living" i.e. money you must spend in order to live in a property (rent/mortgage... unless you've paid it off/maintenance) (/council tax/water bills/heating) + food (even cold value baked beans cost money). Money saving doesn't reduce costs to zero.

Personally, I'm not sure I'd want to rely solely on the state pension, and by not paying into the employer scheme you miss out on their contributions and tax relief on your contributions.

Yes this country is going downhill 

mate you saying there will be huge numbers of people living just above poverty level? Much larger numbers than we already have?

Auto enrollment is a thing for most people... So what does that tell you about one possible future scenario for the state pension?

Which is safer, state or private pension?

They mean the state pension may disappear at some point as the government of the time believe that with everyone being in auto enrolment the need to pay out a state pension has ceased to exist.

Woe betide anyone who opted out of auto enrolment