Pie in the sky pension question

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  • enthusiasticsaver
    enthusiasticsaver Posts: 15,566 Ambassador
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    Silvertabby wrote: »
    Council tax for our Band E house (nowhere near London) is just under £19K.

    Band E for:

    Kensington and Chelsea = £1298.03

    Tower Hamlets = £1523.89

    I presume you mean £1900?

    I don't think OP would get a band E house for £220k anywhere in the country. That would be more like a band C. Our Band D house in Cornwall is £1700 per annum. I am surprised at how low that council tax is for London boroughs though.
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  • scaredofdebt
    scaredofdebt Posts: 1,640 Forumite
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    enthusiasticsaver wrote: »
    I presume you mean £1900?

    I don't think OP would get a band E house for £220k anywhere in the country. That would be more like a band C. Our Band D house in Cornwall is £1700 per annum. I am surprised at how low that council tax is for London boroughs though.

    My house is band "F" and the neighbours house is too. It was bought for £227,500 a couple of years back, the decor was a bit dated and the vendors wanted a quick sale, but still. There are cheaper areas than mine in the country too - I live near Barnard Castle in Co Durham, ie the North East.

    My Council Tax is £3,200.
    Make £2018 in 2018 Challenge - Total to date £2,108
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    enthusiasticsaver wrote: »
    I presume you mean £1900?

    I don't think OP would get a band E house for £220k anywhere in the country. That would be more like a band C. Our Band D house in Cornwall is £1700 per annum. I am surprised at how low that council tax is for London boroughs though.

    Council tax banding depends on the area, the actual value will vary hugely dependent on the local market.

    It's also very much cheaper in London, pound for pound, partially due to the fact that the concentration of housing in London makes many council spend aspects much cheaper and also a legacy political issue, just think what happened when Shirley porter managed to get away with for many years.
  • martinsurrey
    martinsurrey Posts: 3,368 Forumite
    enthusiasticsaver wrote: »
    I am surprised at how low that council tax is for London boroughs though.

    London councils make a LOT of money out of parking, and the richer boroughs dont have as many spending needs.

    Westminster is only £600 for a band D house, they also get around £40m in parking revenue...
  • Terron
    Terron Posts: 846 Forumite
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    edited 11 October 2017 at 5:15PM
    For a few months in 2014 I was living on £900 a month in Reading. It was enough for day to day living but I was having to tap savings for yearly expenses like MOT. So I don't think 10k is quite enough to live on.

    I have since moved back to the North West. I have quite a nice 3 bed end-terrace house in a conservation area on the edge of the Peak District I paid ~£180k. My current income comes from letting properties. This year I bought a recently refubished 2 bed terrace for £90k.

    Note heating costs are likely to be a bit higher in the North.

    You could very likely achieve you target when you get your, but I guess you are looking at doing it earlier. Pensions can cover from 55 onwards currently. That may be increased later, but existing schemes might well be allowed to continue starting at 55.

    To retuire before then you would require other savings to cover the gap, but I would look to get a pension to cover 55 to SP age first.

    Actually first I would get a stocks and shares ISA to replace your cash one.

    Then pay as much as possible into pensions until you have added £100k.

    The review how things are going.
  • Silvertabby
    Silvertabby Posts: 9,010 Forumite
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    “ Council tax for our Band E house (nowhere near London) is just under £19K.

    Band E for:

    Kensington and Chelsea = £1298.03

    Tower Hamlets = £1523.89
    Originally posted by Silvertabby ”
    I presume you mean £1900?
    I don't think OP would get a band E house for £220k anywhere in the country. That would be more like a band C. Our Band D house in Cornwall is £1700 per annum. I am surprised at how low that council tax is for London boroughs though. Posted by enthusiasticsaver

    Sorry - our £19K is per annum, so £1900 per month (over 10 months). Kensington and Tower Hamlets curtesy of google.

    Our (band E) house is probably worth about £300K so council tax for a £220K house in our area would probably be on a par with London.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Silvertabby wrote: »
    I presume you mean £1900?



    Sorry - our £19K is per annum, so £1900 per month (over 10 months). Kensington and Tower Hamlets curtesy of google.

    Our (band E) house is probably worth about £300K so council tax for a £220K house in our area would probably be on a par with London.

    You are paying £1900 per month council tax?

    I'd check your figures and definitely appeal if they are correct.
  • GT1979
    GT1979 Posts: 2 Newbie
    Lots of food for thought there. Thank you. Some clarifications:

    - I'd hope for income of £10,000 but would work part time soon something more enjoyable and stress-free than current situation.

    - I do live relatively frugally now. Save quite a bit and regularly knock a bit off the mortgage.

    One question: when people say the 40% pension relief is a no-brainer, what do they mean? Previously I've had a DC pension while earning much less and a DB pension. My new job is currently organising a pension scheme (new company so isn't sorted yet - should start by December) and I'm unsure what they'll contribute. What is the 40% relief and is there a min/max that I should put in myself to avoid some pitfall?
  • Silvertabby
    Silvertabby Posts: 9,010 Forumite
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    edited 12 October 2017 at 10:05AM
    You are paying £1900 per month council tax?

    I'd check your figures and definitely appeal if they are correct. Posted by bigadaj

    Senior moment - well spotted! £1900 per year !
  • Triumph13
    Triumph13 Posts: 1,730 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
    GT1979 wrote: »
    One question: when people say the 40% pension relief is a no-brainer, what do they mean? ... What is the 40% relief and is there a min/max that I should put in myself to avoid some pitfall?

    If you are on £50k then you would be paying 40% tax on the top £5k of that. If you put it into a pension instead then you avoid paying that 40% tax - it's a choice between £3k of cash of £5k in the pension. Particularly attractive in your case as it looks likely that you won't be paying tax on that pension on the way out so the £2k is straight profit - though you will have to wait a long while to get at it as the age 55 limit for accessing a pension will probably have gone up to something closer to 60 by the time you get there.
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