Lost thousands on Lloyds wife worked for them so we we had thousands of them but up overall.
and don't worry about investments...We have enough in pensions to do want we want,,,few bob and i mean a few in the bank,,,,but you cant take it with you,,Sold our cottage 16 years ago to fund travelling,,,rent from a Housing Association so have a secure tenancy.Usually manage to travel Europe 6 months a year and up to now other than acute RA for me we are pretty healthy so very happy with life..Been retired 21 years.BUSBY.
Only if you have the full 35 years with no years "opted out"
I have another friend where both are higher rate tax payers on pension & investment income. Why does he work up to 14 hrs /day ,some times 6 days a week for minimum wage? What's that all about?
I can never understand why people pay in to a pension once retired?
Ah the old - you shouldn't be allowed to work once you have drawn a pension.
If you're referring to the £3600 gross contribution, anyone can pay that amount into a UK pension each year, even if you have no earned income. You contribute £2880 and HMRC give you £720 tax relief to make a £3600 gross contribution. You can then take 25% tax free (£900) and the balance of £2700 at your income tax rate, which could be zero if your income plus drawdown is entirely within the personal allowance.
Excellent news well done and good luck.I told my employer this week that I`ll be retiring 31st March when I`ll be 63, woopie.
I still got three years to state pension age but did some figures and we`ll be ok, but not flush.
My thinking was if I worked another three years, we`d just have another few £k`s in the bank, everything else stays the same.
I`d rather have those years doing the things I want to do
Roll on March and by then I hope we can all continue with out travel dreams.
No , a perfectly serious question. Why would you pay in once retired?
How?
Excelllent reply & now this has been explained I can see how it works.If you're referring to the £3600 gross contribution, anyone can pay that amount into a UK pension each year, even if you have no earned income. You contribute £2880 and HMRC give you £720 tax relief to make a £3600 gross contribution. You can then take 25% tax free (£900) and the balance of £2700 at your income tax rate, which could be zero if your income plus drawdown is entirely within the personal allowance.
So, if you pay no tax, you've just received £3600 for an outlay of £2880, or £720 profit.
If you pay tax at 20%, you get £900 tax free and £2160 after tax, a total of £3060 for £2880 or £180 profit.
If you have earned income, you can pay more, and correspondingly receive more. When I took my first pension, I carried on working for another 6 years. For illustrative purposes say that my pension and salary would have given me a higher rate tax liability on around £10000 of annual income, meaning that I would only get £6000 of that money after tax. By continuing to make pension contributions to at least that level I only had to contribute £8000 to make a gross contribution of £10000, with HMRC making up the additional £2000 from tax relief. It also reduced my annual income calculation by the amount of the gross contribution, taking it below the higher rate threshold and saving me another £2000 in income tax. So effectively, £10000 in my pension cost me £6000. I can take £2500 (25%) of that tax free, and if I draw the balance before SPA when I would be liable to 40% income tax again, I receive the balance less £1500 tax. So I take £8500 in pension income for an initial outlay of £6000.
There aren't many places you can get a guaranteed profit for no cost and very little effort
I could do it myself but won't be as it just appears to be morally wrong.
I retired 5 years before I drew my first pension, life is too short to work longer than you need,,plus I had chronic RA.. BUSBY.If you're referring to the £3600 gross contribution, anyone can pay that amount into a UK pension each year, even if you have no earned income. You contribute £2880 and HMRC give you £720 tax relief to make a £3600 gross contribution. You can then take 25% tax free (£900) and the balance of £2700 at your income tax rate, which could be zero if your income plus drawdown is entirely within the personal allowance.
So, if you pay no tax, you've just received £3600 for an outlay of £2880, or £720 profit.
If you pay tax at 20%, you get £900 tax free and £2160 after tax, a total of £3060 for £2880 or £180 profit.
If you have earned income, you can pay more, and correspondingly receive more. When I took my first pension, I carried on working for another 6 years. For illustrative purposes say that my pension and salary would have given me a higher rate tax liability on around £10000 of annual income, meaning that I would only get £6000 of that money after tax. By continuing to make pension contributions to at least that level I only had to contribute £8000 to make a gross contribution of £10000, with HMRC making up the additional £2000 from tax relief. It also reduced my annual income calculation by the amount of the gross contribution, taking it below the higher rate threshold and saving me another £2000 in income tax. So effectively, £10000 in my pension cost me £6000. I can take £2500 (25%) of that tax free, and if I draw the balance before SPA when I would be liable to 40% income tax again, I receive the balance less £1500 tax. So I take £8500 in pension income for an initial outlay of £6000.
There aren't many places you can get a guaranteed profit for no cost and very little effort
It's not morally wrong, and perfectly legitimate. It is the government incentive to encourage people to contribute to pensions.Excelllent reply & now this has been explained I can see how it works.
& I won't be mentioning it to my working mate as he certainly doesn't know of it & I've already earnt him 10's of 000's this year giving him links & passing on advice.
I have a pension from my main job. We have offspring back at home and are running 2 cars as well as the moho. The wife is a number of years young than me and could retire but enjoys socialising with her friends and is happy to work on for a couple of years rather than charge for rent or food. I work 2 days a week driving newish Germanic cars about which I thoroughly enjoy, normally going away for 8 weeks in the summer. Why not get the company contributions and pay less tax. The concept that you cannot use a pension to slow down or do something less well paid but more enjoyable rather than stop working is more puzzling.
Not quite, I took fixed protection in 2014 so I can’t, not that I’d want too really. Rules are slightly different now I think.
my advice is go for it as soon as possible,youll be surprised what you can easily live without, i think the pandemic has taught people that, luckily im not a high maintenance gal altho i do like my lippy and mascara 
Would you agree with me that our definition of a “Rainy Day” changes as we get older? Mine certainly has
Yes I would, as you get older spending alters from pleasure provision to pain alleviation, comfort and care and it’s a whole other argument as to who should and how that’s paid for.Would you agree with me that our definition of a “Rainy Day” changes as we get older? Mine certainly has
We did exactly the same as you.After reading much of the above i am glad we are financially poor,,well in comparison to many
Yes, providing you do it/spend it early enough, the state cannot prove/class it as an intentional ”deprivation of assets”. Just a case of a couple enjoying what they’ve got. Not a deprivation.
Those courses can be very variable in my experience. The first one I attended through my employer, 5 years before my earliest permitted retirement age, was excellent. I went as partner to my wife's NHS retirement course several years later, and to be frank it was quite poor. The third, again via my employer, was even worse, and quite frankly just a sales exercise by a finance company to try and take people's money from them.
Had similar experience
Yes i appreciate that but for me it is. I do not consider anything that is unearned as correct. Stuff like that would keep me awake at night agonising over whether it was actually right.
So you still have to pay rent out of your pension/savings? I thought that was the good thing about owning your house in retirement is not having a largish outlay each month for mortgage? I guess on your plus side any repairs that ned doing are covered by the housing authority.
But why should you go without when your young fit and healthy to gamble on staying fit and living a long retirement..We always had good holidays with the kids and on our own when the kids left home,,,regulars in our village pub,,dined out regularly and tried to run decent cars whilst working..Luckily been retired 21 years now and enjoyed every bit of it and long may it last..Could have saved more money and gone without when younger but why ?? we dont need more,,,I dont want to be the richest one in the graveyard..BUSBYIt's not morally wrong, and perfectly legitimate. It is the government incentive to encourage people to contribute to pensions.
Surprising that a lot of people, even when made aware of it, have "better" things to do with their money. When I announced to the three work colleagues in my office (all similar age or older than me) that I was retiring, they couldn't understand how I could afford it, all citing various debts. I told them to look out of the window.
They did, and much puzzlement followed. I pointed to their cars, and said, "New Jaguar, new Mercedes, nearly new Range Rover, 15 year old Mondeo".
Guess which one was mine
Lifestyle choices. Whenever my wife and I started earning substantially more, we continued to live on what we were used to having, and saved and invested the rest. We still have a mortgage, and I've got a new car now, or at least it was new when I bought it. But we seem to have more money than when I retired. Can't seem to spend it fast enough - old habits die hard!
Did you ever have a company pension? They operate in exactly the same way, except that because your contributions are made at source before tax on your pay, the benefits are not obvious because what you receive in your pay packet has already been calculated to include them. The boost to your contribution and reduction in income tax as a result of contributions is exactly the same though.
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