Can we retire please? How much money do you really need need?

AFAIK you can only top up the past six years NI missing contributions.

So, if you think it might affect you, don't delay because once it's gone it's gone.

Very easy to do, if not a little time consuming, hanging on the phone.
 
Started self employment at 21 and never looked back.
I have no pensions whatsoever except what the government will give me at 68 plus Im 50 so I reckon I will be allowed to retire at oh hmm 78. Luckily I have never trusted pensions so mine is bricks and mortar which will be paid off when I’m 60 and I will pay tax on that till I die so I say f££k em I’m sorted. I just hope we don’t get 90% tax rate for those that have worked for a living.
 
Mr porky said:
Started self employment at 21 and never looked back.
I have no pensions whatsoever except what the government will give me at 68 plus Im 50 so I reckon I will be allowed to retire at oh hmm 78. Luckily I have never trusted pensions so mine is bricks and mortar which will be paid off when I’m 60 and I will pay tax on that till I die so I say f££k em I’m sorted. I just hope we don’t get 90% tax rate for those that have worked for a living.
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So it seems you've made provisions for your retirement?
Perhaps not the conventional way - but nevertheless, not reliant on the State.

Why have you "never trusted" pensions?
 
Been tracing my pensions over the last couple of weeks. I have to say I’ve been really surprised (positively) by how relatively modest sums have grown very significantly (compound interest effect) over time. Nice to have got some good news for once!! 👌

I am in a position at the moment where I learnt something the other day which I did not realise. One can use maximum annual pension contribution (£40k currently) allowances back dated two previous tax years. Effectively maximum contributions are £120k in that period. I’ve paid nothing like that amount put in through my ‘normal’ monthly contributions, but will be company bonus rich (comparatively) in the next month.

For context, I’m 52 and retiring this year. I’m in a position where I don’t ‘need’ the bonus right now. I also have a healthy amount of pension built up.

So the modus operandi is this. If I maximise the pension contributions for the last three years with my bonus, I can then extract that from 55 years of age onwards by leveraging the 25% tax free lump sum. Effectively via at source and through tax return tax relief, that gives me 40-45% (higher tax bands) tax avoidance through sticking the money in the pension. Also all my pensions are doing way better on returns than any other saving method ‘easily’ accessible to me at the moment, so there will be some capital gain value too..

just thought I would put it out there in case it’s useful to others. I knew the £40k in year limit, but didn’t realise the two previous tax year was available.

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Carpmart said:
Been tracing my pensions over the last couple of weeks. I have to say I’ve been really surprised (positively) by how relatively modest sums have grown very significantly (compound interest effect) over time. Nice to have got some good news for once!! 👌

I am in a position at the moment where I learnt something the other day which I did not realise. One can use maximum annual pension contribution (£40k currently) allowances back dated two previous tax years. Effectively maximum contributions are £120k in that period. I’ve paid nothing like that amount put in through my ‘normal’ monthly contributions, but will be company bonus rich (comparatively) in the next month.

For context, I’m 52 and retiring this year. I’m in a position where I don’t ‘need’ the bonus right now. I also have a healthy amount of pension built up.

So the modus operandi is this. If I maximise the pension contributions for the last three years with my bonus, I can then extract that from 55 years of age onwards by leveraging the 25% tax free lump sum. Effectively via at source and through tax return tax relief, that gives me 40-45% (higher tax bands) tax avoidance through sticking the money in the pension. Also all my pensions are doing way better on returns than any other saving method ‘easily’ accessible to me at the moment, so there will be some capital gain value too..

just thought I would put it out there in case it’s useful to others. I knew the £40k in year limit, but didn’t realise the two previous tax year was available.
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I think it is but only once you have used up all the max contribution in the latest year. So if you had say higher rate tax on 10 k this year if you put in 10 k you get higher rate tax relief but if you had 10 k higher rate tax last year you would have to put in 10 at higher rate this year and 30k at standard rate this year before you can use the 10 at higher rate last year. I should check with someone who is an expert first.
I didn't get around to my pension contributions last year and thought I could use them this year but I'm more or less retired and lettings income is not allowable as pension contributions for tax relief. To access last year I would need to contribute 40k first this year even though I would get no tax relef at all on most of it!
 
The Wino said:
I think it is but only once you have used up all the max contribution in the latest year. So if you had say higher rate tax on 10 k this year if you put in 10 k you get higher rate tax relief but if you had 10 k higher rate tax last year you would have to put in 10 at higher rate this year and 30k at standard rate this year before you can use the 10 at higher rate last year. I should check with someone who is an expert first.
I didn't get around to my pension contributions last year and thought I could use them this year but I'm more or less retired and lettings income is not allowable as pension contributions for tax relief. To access last year I would need to contribute 40k first this year even though I would get no tax relef at all on most of it!
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Completely follow you and you are correct. TBH the accountant will work out the tax attributed in previous years based on proportion of income and tax paid in each year and across each tax band. My objective is to get it paid in before the end of the current tax year. The tax return exercise will balance the process.

The primary reason for my post was that back dating of maximum pension contribution allowances wasn’t something I was previously aware one could do, so I wanted to share, but it may be well know already? This also all needs to stay within maximum £1.07m lifetime pension allowances as well, which doesn’t impact me.
 
Mr porky said:
Started self employment at 21 and never looked back.
I have no pensions whatsoever except what the government will give me at 68 plus Im 50 so I reckon I will be allowed to retire at oh hmm 78. Luckily I have never trusted pensions so mine is bricks and mortar which will be paid off when I’m 60 and I will pay tax on that till I die so I say f££k em I’m sorted. I just hope we don’t get 90% tax rate for those that have worked for a living.
Click to expand...
Similar to me, I wouldnt say "didnt trust" so much but wasnt expalined and didnt understand properly, plus "tomorrow" would be fine, but it soon comes around
 
Carpmart said:
One can use maximum annual pension contribution (£40k currently) allowances back dated two previous tax years.
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It probably won't affect [m]any but just a heads up that the HMRC have a cap on how much pension contribution overall - LifeTime Allowance [LTA].
I don't know what it is currently - but I do recall it being lowered.
 
Langtoftlad said:
It probably won't affect [m]any but just a heads up that the HMRC have a cap on how much pension contribution overall - LifeTime Allowance [LTA].
I don't know what it is currently - but I do recall it being lowered.
Click to expand...
It is £1.0M now. Used to be £1.5M.

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Mr porky said:
Started self employment at 21 and never looked back.
I have no pensions whatsoever except what the government will give me at 68 plus Im 50 so I reckon I will be allowed to retire at oh hmm 78. Luckily I have never trusted pensions so mine is bricks and mortar which will be paid off when I’m 60 and I will pay tax on that till I die so I say f££k em I’m sorted. I just hope we don’t get 90% tax rate for those that have worked for a living.
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I thought it was 67, im 55 and hope they haven’t sneaked the bleeding thing back another year.
 
So, I just checked my state pension forecast and it says £235.37 per week - do they say that or do they only pay to the maximum of £175.20 - I am confused
 
ceejayt said:
So, I just checked my state pension forecast and it says £235.37 per week - do they say that or do they only pay to the maximum of £175.20 - I am confused
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You may be getting that figure because your NI contributions weren't contracted out - and you're getting SERPS...

I'd give the Future Pensions Forecast Team a call for clarification - they're very good, don't use jargon.
0800 731 0175
 
Garfields said:
You need to consider how much pension you are willing to sacrifice to never have to attend another Team Building event or Power Point presentation BS
Must be worth a thousand or two
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completely and utterly agree!!! 🙏

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Garfields said:
You need to consider how much pension you are willing to sacrifice to never have to attend another Team Building event or Power Point presentation BS
Must be worth a thousand or two
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Well Garfields , going forward, and thinking outside the box with an inherently joined-up team approach (singing from the same song-sheet) you need to focus on the cost-based savings that can be made during this un-foreseen down-turn....... and consider your position (y)
 
Cheshirecat57 said:
Well Garfields , going forward, and thinking outside the box with an inherently joined-up team approach (singing from the same song-sheet) you need to focus on the cost-based savings that can be made during this un-foreseen down-turn....... and consider your position (y)
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Basically, ensure you take a helicopter view of the entire situation before drilling down and pushing that idea down the corporate pipe.

That's what I do
 
Garfields said:
You need to consider how much pension you are willing to sacrifice to never have to attend another Team Building event or Power Point presentation BS
Must be worth a thousand or two
Click to expand...
Yes I couldn’t agree more that would be bliss
 
Cheshirecat57 said:
Well Garfields , going forward, and thinking outside the box with an inherently joined-up team approach (singing from the same song-sheet) you need to focus on the cost-based savings that can be made during this un-foreseen down-turn....... and consider your position (y)
Click to expand...
I liked the people that did the same work as myself and a get together was good as we did not meet regularly
I had plenty of stuff that I had to be at without the corporate nonsense
My manager was fairly good at keeping me away from it when he could
It was the sitting through the all employee events that drove me daft
There is only so many games of buzz word bingo you can do
I can't remember any that I came away from invigorated
 
Garfields said:
You need to consider how much pension you are willing to sacrifice to never have to attend another Team Building event or Power Point presentation BS
Must be worth a thousand or two
Click to expand...
I'll be forwarding them some photos of Real blue sky thinking. From outside the box obviously :ROFLMAO:
 
Fragle said:
I'll be forwarding them some photos of Real blue sky thinking. From outside the box obviously :ROFLMAO:
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As long as you circle back round to ensure you maximise synergies and collect on the low hanging fruit and well done for your thought leadership and keep leaning in to drive maximum value!

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St piran said:
Funny you say that. Because of lockdown I been chatting to the wife more than usual and I only found out last week that she no longer works at Woolworths.
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That is a double like :LOL: :LOL:

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