Is High Taxation influencing your retirement date or plans?

Albermarle

Organgrinder said:

kinger101 said:

Organgrinder said:

Tax is a complicated matter. Many things inform our views on it. Much depends I would suggest on your views on how we pay for things that benefit society. 

In any event our tax system is largely misunderstood. We have income tax. We have national insurance. Etc.

Now if you earn £30k and get offered a £10k rise. Great. You get to keep £8k of it. Except no you don't because of national insurance. You get to keep £7,200 of it. An effective rate of 28%.

If you earn £60k and get offered a £10k rise you get to keep £5,800 of it. A 42% effective rate. 

Now let's assume you divert all of the increase into a pension fund.

The lower earner still pays £800 in NI (8%). The higher earner pays only £200 in NI (2%).

As a way of saving money, pension funds (currently) are a very cost effective way of managing your tax bill.

This ignores the fact that NI might be saved if via salary sacrifice.  And pension income is taxable.

It was an example of our complicated tax system. That is all 

I think in some other countries it is even more complicated, like in Germany 

missile

Alnat1 said:

Forget about the financial side of things and simply ask yourself - am I happy?

If yes, carry on doing what you are now.

If not, think about what would need to change to make you content with life.

It's only really complicated if money is what makes you happy. 

Money cannot buy happiness, but it can buy a new 911. After all the hype and the initial glow wore off, I was really disappointed with mine