Budget looks grim

poseidon1

JoeCrystal said:

Dazed_and_C0nfused said:

If the +2%/-2% idea comes true I wonder how long it will take before a £2,808/£3,600 thread appears to replace the £2,880/£3600 one 🤔

To be fair, I understand that Torsten Bell is quite involved with the budget, so I am really hoping there will be significant reforms or something similar relating to pension elements such as tax relief, closing loopholes and so on. I got a day off on budget so I can be ready to read the background briefing notes and documents since they are great places to hide the stings rather than actual budget document! 

It has been confirmed (ha!) that they won't change the auto-enrolments contribution rates for the parliament until after general election, but the government got to do something to encourage retirement savings considering how miserable it is for employees who do not have access to actual good pension schemes or get high employer's contributions rates. I think it is more likely that they will make it compulsory or encourage the self-employed to do it, considering a pretty high percentage of self-employed do not bother to contribute into the pension scheme. I did see a figure such as much as 80% of the self employed does not contribute into a private pension scheme.

The following article maybe a condemnation of Nest as the biggest auto enrolment provider, but the staggering numbers who have ceased making contributions, suggests a significant cohort of the current employed working population are sleep walking into a pretty miserable retirement.

https://moneyweek.com/personal-finance/pensions/nest-pensions?utm_term=88C8D3AB-801A-4BA2-9121-A59535747136&lrh=729ccc0544986d89d4ca75a2cc0e78738e9a6c52dec9dc1d0eab4f12ebe5bf8f&utm_campaign=3854FBCB-FE1F-457E-9C9A-87C5805A0127&utm_medium=email&utm_content=7CF90AF5-2779-4F80-BBCF-8F1FB263C723&utm_source=SmartBrief

Seems you can lead a horse to water but.............?

NorthYorkie

Keep_pedalling said:

There are a lot of well off pensioners who don’t really pay their fair share of taxes (including me) but there is alway such an outcry if anyone dares to target us, that political parties of all shades are scared of doing it (too many of us vote). 

How would you define what a 'fair share' is?

itsthelittlethings

BlackKnightMonty said:

itsthelittlethings said:

I don’t know how much you earn, I reckon I’m probably looking at £500 more a year. Obviously not ideal but if it goes to the NHS and schools then fair enough.

Was on +£130k but taken a new role on much less but with big upside. Now on £90.

VAT is £2.5k a term, Employer NI was costing me £50 a week, and my fag packet calcs say and extra £800 a year for the income tax bump, and probably the same again for salary sacrifice.

So it’s not the budget, as VAT on school fees accounts for the majority of that and was brought in a while ago.

BlackKnightMonty

poseidon1 said:

JoeCrystal said:

Dazed_and_C0nfused said:

If the +2%/-2% idea comes true I wonder how long it will take before a £2,808/£3,600 thread appears to replace the £2,880/£3600 one 🤔

To be fair, I understand that Torsten Bell is quite involved with the budget, so I am really hoping there will be significant reforms or something similar relating to pension elements such as tax relief, closing loopholes and so on. I got a day off on budget so I can be ready to read the background briefing notes and documents since they are great places to hide the stings rather than actual budget document! 

It has been confirmed (ha!) that they won't change the auto-enrolments contribution rates for the parliament until after general election, but the government got to do something to encourage retirement savings considering how miserable it is for employees who do not have access to actual good pension schemes or get high employer's contributions rates. I think it is more likely that they will make it compulsory or encourage the self-employed to do it, considering a pretty high percentage of self-employed do not bother to contribute into the pension scheme. I did see a figure such as much as 80% of the self employed does not contribute into a private pension scheme.

The following article maybe a condemnation of Nest as the biggest auto enrolment provider, but the staggering numbers who have ceased making contributions, suggests a significant cohort of the current employed working population are sleep walking into a pretty miserable retirement.

https://moneyweek.com/personal-finance/pensions/nest-pensions?utm_term=88C8D3AB-801A-4BA2-9121-A59535747136&lrh=729ccc0544986d89d4ca75a2cc0e78738e9a6c52dec9dc1d0eab4f12ebe5bf8f&utm_campaign=3854FBCB-FE1F-457E-9C9A-87C5805A0127&utm_medium=email&utm_content=7CF90AF5-2779-4F80-BBCF-8F1FB263C723&utm_source=SmartBrief

Seems you can lead a horse to water but.............?

The expectation is that other people will fund their retirement. Those with the nice broad shoulders…

elsien

BlackKnightMonty said:

SVaz said:

Nobody knows what’s happening with the budget yet.🙄
Maybe save the whinging for when we do know something eh? 

If it’s potentially going to cost you an extra £10k then you are obviously in a position to afford it. 

Yes why not make it 20k or 30k even

Those with the broadest shoulders must subsidise those content to live off the hard work of others.

the UK is screwed.

I work extremely hard. I do not live off the hard work of others. I will also never earn enough that I will lose 10 K from budget changes. Please don’t stereotype those who earn less than you. 

Cobbler_tone

Sounds like Monty is going to have to sell a kidney.
Hold your nerve, it won’t be that disastrous. 

Always best to not moan and worry about things you have absolutely no control over. Wasted energy.

itsthelittlethings

elsien said:

BlackKnightMonty said:

SVaz said:

Nobody knows what’s happening with the budget yet.🙄
Maybe save the whinging for when we do know something eh? 

If it’s potentially going to cost you an extra £10k then you are obviously in a position to afford it. 

Yes why not make it 20k or 30k even

Those with the broadest shoulders must subsidise those content to live off the hard work of others.

the UK is screwed.

I work extremely hard. I do not live off the hard work of others. I will also never earn enough that I will lose 10 K from budget changes. Please don’t stereotype those who earn less than you. 

I didn’t read that bit.

BlackKnightMonty

itsthelittlethings said:

BlackKnightMonty said:

itsthelittlethings said:

I don’t know how much you earn, I reckon I’m probably looking at £500 more a year. Obviously not ideal but if it goes to the NHS and schools then fair enough.

Was on +£130k but taken a new role on much less but with big upside. Now on £90.

VAT is £2.5k a term, Employer NI was costing me £50 a week, and my fag packet calcs say and extra £800 a year for the income tax bump, and probably the same again for salary sacrifice.

So it’s not the budget, as VAT on school fees accounts for the majority of that and was brought in a while ago.

January 2025

BlackKnightMonty

Cobbler_tone said:

Sounds like Monty is going to have to sell a kidney.
Hold your nerve, it won’t be that disastrous. 

Always best to not moan and worry about things you have absolutely no control over. Wasted energy.

Thanks - I am trying my best.

It’s the Financial Times I take my news from. So pretty clued up in terms of what is coming…

SVaz

The usual trick is to leak ‘2%’  then, when it comes out at  ‘only’ 1%,   the masses will be forever grateful at small mercies.