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Apparently IHT on may not be too bad?

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  • MallyGirl
    MallyGirl Posts: 7,201 Senior Ambassador
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Somebody said:
    I think the article says that £59k is not too out of reach when taking into account 2 lots of state pension totalling c£23k.
    Just the 36k after tax 45k before tax, so about 1m pot needed.

    Personally I think 59k is way too much, we need 30k after tax,so basically half that suggestion, not sure how I would spend 59k after tax.
    Move to the South East within commuting distance of London - and get a dog!
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • Albermarle
    Albermarle Posts: 27,762 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Somebody said:
    I think the article says that £59k is not too out of reach when taking into account 2 lots of state pension totalling c£23k.
    Just the 36k after tax 45k before tax, so about 1m pot needed.

    Personally I think 59k is way too much, we need 30k after tax,so basically half that suggestion, not sure how I would spend 59k after tax.
    I live near to a very wealthy area. I am sure some of the people there would happily spend £59K on a birthday party, or on racehorse training fees, or a luxury family holiday, or cosmetic surgery, or a box at Royal Ascot etc
    For them living on £59K a YEAR would only be for the great unwashed.
  • Albermarle
    Albermarle Posts: 27,762 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Reference that 59K net figure, just put that on a younger couple with say no children and paying 2K PM or 24K PA mortgage.

    That looks like 83K net is required. 

    Fagg packet is showing me household gross income of 120K PA. 

    A very strange article in many ways. 
    Even more strange that is a Daily Mail article, putting almost a positive spin on something in Rachel Reeves budget.
    Normally their articles are heavily twisted in the other direction.
  • SouthCoastBoy
    SouthCoastBoy Posts: 1,079 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    Somebody said:
    I think the article says that £59k is not too out of reach when taking into account 2 lots of state pension totalling c£23k.
    Just the 36k after tax 45k before tax, so about 1m pot needed.

    Personally I think 59k is way too much, we need 30k after tax,so basically half that suggestion, not sure how I would spend 59k after tax.
    I live near to a very wealthy area. I am sure some of the people there would happily spend £59K on a birthday party, or on racehorse training fees, or a luxury family holiday, or cosmetic surgery, or a box at Royal Ascot etc
    For them living on £59K a YEAR would only be for the great unwashed.
    Yes I'm sure there are plenty of people who could spend well beyond the 59k a year, I used to live in Sevenoaks, and now not that far from sandbanks, so understand there are plenty of people who like to flash the cash. I'm just not one of them.
    It's just my opinion and not advice.
  • QrizB
    QrizB Posts: 18,076 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    Somebody said:
    I think the article says that £59k is not too out of reach when taking into account 2 lots of state pension totalling c£23k.
    Just the 36k after tax 45k before tax, so about 1m pot needed.

    Personally I think 59k is way too much, we need 30k after tax,so basically half that suggestion, not sure how I would spend 59k after tax.
    I live near to a very wealthy area. I am sure some of the people there would happily spend £59K on a birthday party, or on racehorse training fees, or a luxury family holiday, or cosmetic surgery, or a box at Royal Ascot etc
    For them living on £59K a YEAR would only be for the great unwashed.
    There was someone on this forum (I can't find the thread now) who was planning to spend £50k pa on riding lessons for their granddaughter. So yes, they exist.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.
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  • AlanP_2
    AlanP_2 Posts: 3,517 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 10 January at 4:24PM
    incus432 said:
     the inclusion of pensions in IHT is a serious issue... affect those with property whose pensions and other assets put them over the 1 million mark.
    That's about a quarter of all pensioners.
    BikingBud said:
    Tell me again how house price inflation was good for us all!

    Do you have a source for that statistic as it sounds extremely high to me?

    Out of 7 pensioner couples I am familiar with I can think of only one couple whose assets would get to that level and the main factor there  is a large house 2 miles outside the M25 in Hertfordshire.
  • Albermarle
    Albermarle Posts: 27,762 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Somebody said:
    I think the article says that £59k is not too out of reach when taking into account 2 lots of state pension totalling c£23k.
    Just the 36k after tax 45k before tax, so about 1m pot needed.

    Personally I think 59k is way too much, we need 30k after tax,so basically half that suggestion, not sure how I would spend 59k after tax.
    I live near to a very wealthy area. I am sure some of the people there would happily spend £59K on a birthday party, or on racehorse training fees, or a luxury family holiday, or cosmetic surgery, or a box at Royal Ascot etc
    For them living on £59K a YEAR would only be for the great unwashed.
    Yes I'm sure there are plenty of people who could spend well beyond the 59k a year, I used to live in Sevenoaks, and now not that far from sandbanks, so understand there are plenty of people who like to flash the cash. I'm just not one of them.
    Neither am I, but when people are throwing up their hands in horror at a couple spending £59K pa , it is useful to get some perspective by looking at how some sections of society live.
  • SouthCoastBoy
    SouthCoastBoy Posts: 1,079 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    AlanP_2 said:
    incus432 said:
     the inclusion of pensions in IHT is a serious issue... affect those with property whose pensions and other assets put them over the 1 million mark.
    That's about a quarter of all pensioners.
    BikingBud said:
    Tell me again how house price inflation was good for us all!

    Do you have a source for that statistic as it sounds extremely high to me?

    Out of 7 pensioner couples I am familiar with I can think of only one couple whose assets would get to that level and the main factor there  is a large house 2 miles outside the M25 in Hertfordshire.
    1M isn't much when you sum up a house and a DC pension, different if there is a DB pension involved. 
    It's just my opinion and not advice.
  • Hoenir
    Hoenir Posts: 7,714 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 10 January at 4:54PM
    QrizB said:

    BikingBud said:
    Tell me again how house price inflation was good for us all!
    It used to be good when you bought a house at the limit of affordability and over time inflation and wage increases made it a lower and lower proportion. Since salaries stopped keeping up with inflation, its made mortgages for the current generation much more expensive in real terms over time.

    I'd rather like to see house prices fall by 50%, despite the fact it would reduce my paper assets by several £100k. But that would be quite the bursting bubble.

    Best thing that could happen for this country (and some others) is significant real fall in house prices allowing money to go to more productive areas of the economy. 
    Totally agree. We appear to be living in an illusory world. Where money is made , and subsequently spent,  by simply purchasing an "asset" . Watching it inflate in price then selling it on to somebody else who funds this with an ever increasing level of debt. While the number of people actually working productively diminish in number.  
  • SouthCoastBoy
    SouthCoastBoy Posts: 1,079 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    Hoenir said:
    QrizB said:

    BikingBud said:
    Tell me again how house price inflation was good for us all!
    It used to be good when you bought a house at the limit of affordability and over time inflation and wage increases made it a lower and lower proportion. Since salaries stopped keeping up with inflation, its made mortgages for the current generation much more expensive in real terms over time.

    I'd rather like to see house prices fall by 50%, despite the fact it would reduce my paper assets by several £100k. But that would be quite the bursting bubble.

    Best thing that could happen for this country (and some others) is significant real fall in house prices allowing money to go to more productive areas of the economy. 
    Totally agree. We appear to be living in an illusory world. Where money is made , and subsequently spent,  by simply purchasing an "asset" . Watching it inflate in price then selling it on to somebody else who funds this with an ever increasing level of debt. While the number of people actually working productively diminish in number.  
    I'm quite happy to jump on this band wagon and see house prices significantly reduce in real terms, however been wanting that to happen for over 20 years, can't see it ever happening as the economy is based on rising house prices.
    It's just my opinion and not advice.
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