keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Sept 8, 2021 13:27:57 GMT
We all know it's gone, for me a serious breach of trust....
Pensions may go up by £5 a week
The Energy Cap increase will take £2.50 of that, my Council tax ( proposed ) increase another £1. For some the £5 will also trigger a fall of other benefits. I think it is likely that the Energy Price cap will go up again in May.
Why oh why can't a rich country like the UK give our pensioners a decent pension.
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hazellend
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Post by hazellend on Sept 8, 2021 13:38:15 GMT
We all know it's gone, for me a serious breach of trust.... Pensions may go up by £5 a week The Energy Cap increase will take £2.50 of that, my Council tax ( proposed ) increase another £1. For some the £5 will also trigger a fall of other benefits. I think it is likely that the Energy Price cap will go up again in May. Why oh why can't a rich country like the UK give our pensioners a decent pension. They could but NI/tax would need to be higher to pay for it. Countries with high state pension tend to have quite high contributions for it but don’t really provide the means for private pensions (and tax savings) like SIPPs in this country. To be fair the wage increase this year is a statistical blip and should be discounted.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Sept 8, 2021 14:28:32 GMT
And if average incomes goes up another 8% next year will that still be a blip...
It would seem that the effective 32% rate in the UK paid by most is lower than most in the EU, personally I think the NI should perhaps taper down more slowly.
People complaining that they have to pay taxes to support the pensioners and "it's unfair" well a lot of those pensioners paid in, took very little out of the system during their working life and didn't moan when we had income tax at much higher rates than now, and more expensive ( in terms of percentages ) mortgages etc.
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Post by Deleted on Sept 8, 2021 14:31:05 GMT
The way I see it is that we have done the country great financial damage to keep a lot of pensioners alive, and yes not everyone made it, but the young and the workers have had to pay a heavy price to keep me safe.
I see no reason why I should not pay something back especially if only for 1 or 2 years.
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agent69
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Post by agent69 on Sept 8, 2021 14:47:28 GMT
We all know it's gone, for me a serious breach of trust.... Pensions may go up by £5 a week The Energy Cap increase will take £2.50 of that, my Council tax ( proposed ) increase another £1. For some the £5 will also trigger a fall of other benefits. I think it is likely that the Energy Price cap will go up again in May. Why oh why can't a rich country like the UK give our pensioners a decent pension.Rich? Last time I looked the country was in hock big time.
And lots of people have very good pensions. They're called public sector final salary pensions.
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Balder
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Post by Balder on Sept 8, 2021 14:52:47 GMT
We all know it's gone, for me a serious breach of trust.... Pensions may go up by £5 a week The Energy Cap increase will take £2.50 of that, my Council tax ( proposed ) increase another £1. For some the £5 will also trigger a fall of other benefits. I think it is likely that the Energy Price cap will go up again in May. Why oh why can't a rich country like the UK give our pensioners a decent pension.Rich? Last time I looked the country was in hock big time.
And lots of people have very good pensions. They're called public sector final salary pensions.
and it is the funding of those from current tax receipts that is the real problem that never gets admitted!
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hazellend
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Post by hazellend on Sept 8, 2021 15:53:31 GMT
We all know it's gone, for me a serious breach of trust.... Pensions may go up by £5 a week The Energy Cap increase will take £2.50 of that, my Council tax ( proposed ) increase another £1. For some the £5 will also trigger a fall of other benefits. I think it is likely that the Energy Price cap will go up again in May. Why oh why can't a rich country like the UK give our pensioners a decent pension.Rich? Last time I looked the country was in hock big time.
And lots of people have very good pensions. They're called public sector final salary pensions.
Public sector funds salary is around 33% contribution from gross remuneration for higher earners in the NHS. If we all paid 33% NI then everybody could get the same benefit.
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shimself
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Post by shimself on Sept 8, 2021 16:28:01 GMT
They are saying it's about the wages statistical blip, and I can see their point; even Steve Webb the LibDem inventor of the triple Lock agrees. BUT they've also cut the link to inflation (probably would have been ~3%)
And that tells us (again and again and again) the BJ and crew never tell the truth
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jonno
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nil satis nisi optimum
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Post by jonno on Sept 8, 2021 16:44:27 GMT
They are saying it's about the wages statistical blip, and I can see their point; even Steve Webb the LibDem inventor of the triple Lock agrees. BUT they've also cut the link to inflation (probably would have been ~3%)
And that tells us (again and again and again) the BJ and crew never tell the truth
Whilst I don't particularly disagree on your final point, hasn't the lock been set at 2.5% or CPI which ever is HIGHER?
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agent69
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Post by agent69 on Sept 8, 2021 17:06:46 GMT
They are saying it's about the wages statistical blip, and I can see their point; even Steve Webb the LibDem inventor of the triple Lock agrees. BUT they've also cut the link to inflation (probably would have been ~3%)
And that tells us (again and again and again) the BJ and crew never tell the truth
If you are looking for a politician that never lies you're probably going to be disapointed, and in fairness to the Government, the 2019 manifesto could hardly have predicted the current mess we are in.
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corto
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one-syllabistic
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Post by corto on Sept 8, 2021 17:09:47 GMT
I'll have one of those final salary pensions when I retire, but let me tell you that had I paid the same money into a private scheme over the same time I would get out *way* more, by a factor larger than two. The advantage is that it's safer than managing your own portfolio; the assumption that it is "higher" than other schemes is not generally correct.
When I say "safer" that actually also needs moderation as the current situation shows. Over the years different governments have meddled with pensions several times, basically already reducing my expected pension by at least 30% compared to what I would have forecast on base of the rules about 20 years ago when I started paying into the English pension schemes.
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agent69
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Post by agent69 on Sept 8, 2021 17:35:04 GMT
Rich? Last time I looked the country was in hock big time.
And lots of people have very good pensions. They're called public sector final salary pensions.
Public sector funds salary is around 33% contribution from gross remuneration for higher earners in the NHS. If we all paid 33% NI then everybody could get the same benefit. NHS and UNISON web sites say employee contributions are between 5% and 14.5% depending on salary. However, I suspect that most people (particularly lower paid) wouldn't want their employee NI contribution to increase by 20%.
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hazellend
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Post by hazellend on Sept 8, 2021 17:55:48 GMT
Public sector funds salary is around 33% contribution from gross remuneration for higher earners in the NHS. If we all paid 33% NI then everybody could get the same benefit. NHS and UNISON web sites say employee contributions are between 5% and 14.5% depending on salary. However, I suspect that most people (particularly lower paid) wouldn't want their employee NI contribution to increase by 20%. My contribution is 33%. In all honesty I’d like the option to opt out and keep the pre tax salary to invest as I see fit, but they’ve not allowed that in Scotland yet. You need to include the employer contribution in the calculation because it is part of your remuneration package.
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travolta
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Post by travolta on Sept 8, 2021 18:28:52 GMT
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IFISAcava
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Post by IFISAcava on Sept 8, 2021 19:08:11 GMT
NHS and UNISON web sites say employee contributions are between 5% and 14.5% depending on salary. However, I suspect that most people (particularly lower paid) wouldn't want their employee NI contribution to increase by 20%. My contribution is 33%. In all honesty I’d like the option to opt out and keep the pre tax salary to invest as I see fit, but they’ve not allowed that in Scotland yet. You need to include the employer contribution in the calculation because it is part of your remuneration package. Mine was even higher (34.5% - 14.5% me, 20% employer) and I had no control over how much it was (it was all or nothing), and because it was so high it triggered an additional tax payment for breaching the annual allowance, even though the assumed accrued pension was not even guaranteed as a third of the salary on which the contributions were based could be withdrawn, thereby also reducing the pension (on which tax had been paid over several years) by a third. And then things got even worse as they introduced a taper to the annual allowance, as well as cutting the lifetime allowance, and and the upshot was that it worked out I earned more if I worked fewer hours. Literally. Not just per hour - in absolute terms. My income including pension accrual was higher if I worked about a third fewer hours. So I did. And then I realised my life was better working fewer hours, and then COVID hit. And that is how the NHS lost many of its most senior staff. There is no way that senior NHS staff are going to work extra hours now to make up the backlog. Once bitten, twice shy.
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