md1987:
Interesting reading this, genuinely. Some good points posted. I’m 35, no pension. No dependants. Honestly not something I think of much.
Take wee bitta friendly advice:
When you get to mid 50s and not put something into a pension the VERY last thing you’ll “look forwards” to is working until 67/68yrs to receive a piddly state pension weekly sum!!!
The Gov will gladly “top up” your SIPP monthly pension contributions by 20% so
“money for aul rope” etc etc.
Socketset:
Deferring your pension is madness - just a con by the government.
Think about it - pension is about 8k a year - defer it say for two years 16k.
Enhanced pension is what, say an extra £20 a week divide that into 16k…
You would have to live 'til you’re about 82 before you break even.
No, claim it and salt it away - savings account whatever.
If the worst happens and you die before you claim it then the government is laughing and your loved ones have nada.
Grab it while you can at least it’s there stashed even if you don’t need it to live on.
If only it was that simple. For example, if you are currently in a well-paid job (or have other income streams in addition to your job) it may well be that your £9600 (that’s a bit more than 8k…) State Pension would be taxed at 40% rather than 20%. That’s almost £75 a week in tax (£7700 over the two years mentioned). Also bear in mind that if you do defer it, the whole amount you get is subject to the “triple lock” annual increase, so the extra £21 a week you get by deferring for two years gets boosted every year for as long as you live. Also remember that savings you’ve stashed away can impact upon other Benefits you may become entitled to in later years, as well as being hoovered up should you need care (either at home or in a residential setting) in your dotage. Get some professional advice (even if you have to pay for it).
You don`t pay tax on your state pension, only pay tax on private pension if you exceed income limit,
You don`t pay tax on your state pension, only pay tax on private pension if you exceed income limit,
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I think you’ll find that if you elect to.take your state pension whilst continuing to work, and the combined income exceeds your personal allowance which will almost certainly be the case, that your pension will be considered part of your income and you will be taxed accordingly. If you remain in a fairly well paid job whilst also taking your pension, that could be sufficient to put you into a higher tax bracket,(40%),so its maybe not such a bad idea to defer, depending of course, on your circumstances.
Socketset:
Deferring your pension is madness - just a con by the government.
Think about it - pension is about 8k a year - defer it say for two years 16k.
Enhanced pension is what, say an extra £20 a week divide that into 16k…
You would have to live 'til you’re about 82 before you break even.
No, claim it and salt it away - savings account whatever.
If the worst happens and you die before you claim it then the government is laughing and your loved ones have nada.
Grab it while you can at least it’s there stashed even if you don’t need it to live on.
If only it was that simple. For example, if you are currently in a well-paid job (or have other income streams in addition to your job) it may well be that your £9600 (that’s a bit more than 8k…) State Pension would be taxed at 40% rather than 20%. That’s almost £75 a week in tax (£7700 over the two years mentioned). Also bear in mind that if you do defer it, the whole amount you get is subject to the “triple lock” annual increase, so the extra £21 a week you get by deferring for two years gets boosted every year for as long as you live. Also remember that savings you’ve stashed away can impact upon other Benefits you may become entitled to in later years, as well as being hoovered up should you need care (either at home or in a residential setting) in your dotage. Get some professional advice (even if you have to pay for it).
You don`t pay tax on your state pension, only pay tax on private pension if you exceed income limit,
Depends how you look at it. No you don’t pay tax on a state pension because that on its own won’t take you above the tax threshold.
But what it does do is count towards your allowance before paying tax so your £9627 comes out of your £12570 tax free allowance.
That means if you claim your state pension but carry on working, or have other private pensions etc, you can then only earn another £2943 before you pay tax on your income.
Socketset:
Deferring your pension is madness - just a con by the government.
Think about it - pension is about 8k a year - defer it say for two years 16k.
Enhanced pension is what, say an extra £20 a week divide that into 16k…
You would have to live 'til you’re about 82 before you break even.
No, claim it and salt it away - savings account whatever.
If the worst happens and you die before you claim it then the government is laughing and your loved ones have nada.
Grab it while you can at least it’s there stashed even if you don’t need it to live on.
If only it was that simple. For example, if you are currently in a well-paid job (or have other income streams in addition to your job) it may well be that your £9600 (that’s a bit more than 8k…) State Pension would be taxed at 40% rather than 20%. That’s almost £75 a week in tax (£7700 over the two years mentioned). Also bear in mind that if you do defer it, the whole amount you get is subject to the “triple lock” annual increase, so the extra £21 a week you get by deferring for two years gets boosted every year for as long as you live. Also remember that savings you’ve stashed away can impact upon other Benefits you may become entitled to in later years, as well as being hoovered up should you need care (either at home or in a residential setting) in your dotage. Get some professional advice (even if you have to pay for it).
You don`t pay tax on your state pension, only pay tax on private pension if you exceed income limit,
You pay tax on your income - doesn’t matter whether it’s from employment, private or State pension, interest on savings, rental income, share dividends or even a good many state benefits. It’s all added together to produce a figure for “income”. You pay tax on any income above your personal allowance, regardless of where it came from.
Happy Trucker1:
.got a about £50,000 left on mortgage but thinking about going down the equity line to get it payed off ,gives me more disposable income . Kids all doing well with good pensions . .
Are you talking about taking out an Equity release mortgage to pay off your residential mortgage? Please discuss with your kids first before you do this! Your kids will lose their inheritance.
Alternatively you could gift the house to them while you retain a right to live in it for your lifetime and they could take on/take out a new mortgage at a much better interest rate than equity release.
I’m 70 and a half - I work part time delivering mainly telehandlers and mid range excavators max 14t. Just passed my medical and a bit of plastic turned up in the post the other day to give 'til October next year.
Mrs is 63 and works full time and I do the cooking, cleaning, shopping.
My view is that if I can safely continue working I should to contribute to the finances.
Using binders and ratchet straps isn’t hard work unlike say cage or pallet work.
And no I don’t need a nap in the afternoon or time off for a sing song round the piano or bingo.
I think if there was a survey there would be many veterans still out there working for whatever reason.
There is a general misconception that at the age of sixty you have to get a Honda Jazz with a National Trust sticker in the rear window and a walking stick
Socketset:
Deferring your pension is madness - just a con by the government.
Think about it - pension is about 8k a year - defer it say for two years 16k.
Enhanced pension is what, say an extra £20 a week divide that into 16k…
You would have to live 'til you’re about 82 before you break even.
No, claim it and salt it away - savings account whatever.
If the worst happens and you die before you claim it then the government is laughing and your loved ones have nada.
Grab it while you can at least it’s there stashed even if you don’t need it to live on.
If only it was that simple. For example, if you are currently in a well-paid job (or have other income streams in addition to your job) it may well be that your £9600 (that’s a bit more than 8k…) State Pension would be taxed at 40% rather than 20%. That’s almost £75 a week in tax (£7700 over the two years mentioned). Also bear in mind that if you do defer it, the whole amount you get is subject to the “triple lock” annual increase, so the extra £21 a week you get by deferring for two years gets boosted every year for as long as you live. Also remember that savings you’ve stashed away can impact upon other Benefits you may become entitled to in later years, as well as being hoovered up should you need care (either at home or in a residential setting) in your dotage. Get some professional advice (even if you have to pay for it).
You don`t pay tax on your state pension, only pay tax on private pension if you exceed income limit,
Depends how you look at it. No you don’t pay tax on a state pension because that on its own won’t take you above the tax threshold.
But what it does do is count towards your allowance before paying tax so your £9627 comes out of your £12570 tax free allowance.
That means if you claim your state pension but carry on working, or have other private pensions etc, you can then only earn another £2943 before you pay tax on your income.
Don’t forget, that due to the Con Gov not increasing allowances until 2025/26 and with ‘fiscal drag’ more pensioners will pay tax.
Glad to finish at 65 after 44 years of lorry driving. I don’t think I’d last 5 minutes if I went back; just couldn’t take the BS anymore.
I still love trucks and driving; lucky to have an old hobby truck to play with but it is an expensive toy.
I’m 71 and just renewed my hgv for another 5 years.I work the odd weekend or odd days but would not consider going back full time,too much crap and stress.And before anyone comments I live in Sweden where the rules are different and it is still possible to renew for 5 years after 65.
At 63 I’m already semi-retired in that I only work six months a year. Just started my Winter stint last week and will be working until Easter 2023. I will probably carry on doing this for as long as I can pass the HGV medical, particularly as the job I’ve been doing for the last three Winters involves hardly any effort at all, in an 8.5 hour shift today I doubt I drove 20 miles, the rest of the time is just spent surfing the net.
Harry Monk:
At 63 I’m already semi-retired in that I only work six months a year. Just started my Winter stint last week and will be working until Easter 2023. I will probably carry on doing this for as long as I can pass the HGV medical, particularly as the job I’ve been doing for the last three Winters involves hardly any effort at all, in an 8.5 hour shift today I doubt I drove 20 miles, the rest of the time is just spent surfing the net.
Any vacancies going? I currently do 3 x 8-9 hour shifts a week but I drive about 40 miles each shift. Looking to cut down the driving…
Happy Trucker1:
.got a about £50,000 left on mortgage but thinking about going down the equity line to get it payed off ,gives me more disposable income . Kids all doing well with good pensions . .
Are you talking about taking out an Equity release mortgage to pay off your residential mortgage? Please discuss with your kids first before you do this! Your kids will lose their inheritance.
Alternatively you could gift the house to them while you retain a right to live in it for your lifetime and they could take on/take out a new mortgage at a much better interest rate than equity release.
Thanks for the advice stu you are right , but before we do anything we do have a decent financial adviser who we have been with for about 20 years now , still not definite yet but it is an option , kids should be ok without the house inheritance as we have drummed it into them to get into a private pension ( something that we never done , our choice ) very young , all in there 30s now 2 with decent jobs , obviously we will make sure whatever we do the house will end up with the kids , saying that I’m not working my nuts off to look after them when we’re gone , I’m looking after me & wife they get what’s left , I know some people who leave there self short to pass down to kids and grandkids , no me thanks
I’m 69 and still grovelling around under lorries and trailers outdoors, ■■■■■■■ wheels, roadsprings and hubs about or climbing stacks of pallets to reach the inside of trailer roofs to change internal straps and tighten corner post bolts. I alternate this with overhaul and repair work on vintage buses, which are usually ‘indoors’ although that means a barn on a farm. For lighter work I do relief lorry driving, 90% of the time very local - three or sometimes only two, loads a day never more than 10t on the trailer. This mainly comes out the side although the heavier stuff can sometimes need to pump truck out of the back doors. I do it because they are very good customers for whom I’ve worked for many years now and we have a good and trusting relationship. I’m home every night and I don’t usually start or finish either early or late. At present it suits me although everyone knows that I intend to pack up full time when I reach 71. This gives me the chance to eke out a limited private pension in a way that will provide for my younger (by 5years) but sick wife and perhaps leave some for our children. That last of course dependent upon neither of us ending up in a care home and funding the hordes swarming all over our beaches.
Happy Trucker1:
.got a about £50,000 left on mortgage but thinking about going down the equity line to get it payed off ,gives me more disposable income . Kids all doing well with good pensions . .
Are you talking about taking out an Equity release mortgage to pay off your residential mortgage? Please discuss with your kids first before you do this! Your kids will lose their inheritance.
Alternatively you could gift the house to them while you retain a right to live in it for your lifetime and they could take on/take out a new mortgage at a much better interest rate than equity release.
Thanks for the advice stu you are right , but before we do anything we do have a decent financial adviser who we have been with for about 20 years now , still not definite yet but it is an option , kids should be ok without the house inheritance as we have drummed it into them to get into a private pension ( something that we never done , our choice ) very young , all in there 30s now 2 with decent jobs , obviously we will make sure whatever we do the house will end up with the kids , saying that I’m not working my nuts off to look after them when we’re gone , I’m looking after me & wife they get what’s left , I know some people who leave there self short to pass down to kids and grandkids , no me thanks
Ok, as long as you, and your kids go into it with your eyes wide open, you can do what you like! [emoji23]
I guess it comes down to the interest rates actually available, having a quick look, 4.8% seems to be available and is reasonable.
Socketset:
Deferring your pension is madness - just a con by the government.
Think about it - pension is about 8k a year - defer it say for two years 16k.
Enhanced pension is what, say an extra £20 a week divide that into 16k…
You would have to live 'til you’re about 82 before you break even.
No, claim it and salt it away - savings account whatever.
If the worst happens and you die before you claim it then the government is laughing and your loved ones have nada.
Grab it while you can at least it’s there stashed even if you don’t need it to live on.
When I reached 65 (then pension age) I decided to defer. I had to take a punt on my life expectancy, but both my parents lived well into their 90s so I thought it looked pretty good to defer. Also, note that NI is not payable after pension age which gives you an automatic 10% (or so) pay rise. My calculation at the time was that by deferring for two years I would need to live to 80 to “win”, but that was based on interest rates above 3% compared with the 1 or 2% that has ruled over the last decade.
My current state pension is £248.26 a week, but it is based on the pre-2016 rules. Of course, I also have another pension which makes me reasonably comfortable.
Santa:
Also, note that NI is not payable after pension age which gives you an automatic 10% (or so) pay rise.
ISTR that this has changed now or is going to change, possibly for those retiring after a certain date?
I think all we can say at the moment is that this is unclear until after the Filthies conference is over and Journalists have delved into the full detail of recent or impending announcements.
I know Tim Barrington well; he and I often exchange phone calls on technical matters. The last one of these engines I took apart is AFAIK still in bits 15 years later. I think this project is likely to run into parts availability difficulties, but if anyone can find them Tim will.
Only the very brave take on the restoration of an RT. Deep, deep and deep again pockets required. They are often refered to as rust and dust. These two links give an idea of the bodywork involved.
