Cutting hours better off?

Emmia

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?

You should have both,  enough NI contributions to give you a full state pension (of whatever value that might be) and a private pension formed from your contributions and employer contributions.

Relying solely on your state pension is a gamble that it will be enough to sustain your preferred lifestyle.

R200

I don’t know there is a lot of talk these days about third party risk. Any of these companies could collapse and everyone loses everything they paid into for years even decades 

penners324

R200 said:

I don’t know there is a lot of talk these days about third party risk. Any of these companies could collapse and everyone loses everything they paid into for years even decades 

There isn't any 3rd party risk. What nonsense have you been reading?

Pensions are protected by the FSCS

R200

FSCS is the third party risk. Ever heard of bail ins?

Strummer22

R200 said:

FSCS is the third party risk. Ever heard of bail ins?

This comment makes no sense. In what sense is FSCS a third party risk? 

martinbuckley

I'm struggling to understand why you feel that your decision to reduce your income should mean me and my fellow taxpayers should up our contribution to fund your lifestyle choice.  Unless you are prepared to self-fund the shortfall and come off taxpayer-funded welfare, you should work.

[Deleted User]

Hi,

you say ''we could just about scrape together the rent every month but have not had enough left over for utilities, council tax or any other bills at all actually.'' in this THREAD, so is that not a reason to work more and earn more, or do you just want handouts?

Andy_L

R200 said:

I don’t know there is a lot of talk these days about third party risk. Any of these companies could collapse and everyone loses everything they paid into for years even decades 

Company DB pension funds are held separately from the company itself and would still exist if the sponsoring company collapsed.
There's an issue if the pension is underfunded when that happens but that's were, as said, the FSCS steps in and even without that everyone won't lose everything they paid into for years even decades

superbigal

This poster is either a troll or one of the people the hideous Tories are trying to root out.  
A lazy bar steward.

Simes122

Fed up with folk who expect others to contribute to the system such that they don't have to.  I think we are doomed as a country.