Things you want to share with P&B

[TxRover]

3 hours ago, Sergeant Wilson said:

State retirement pension isn't social security. The UK government have been making changes to reduce the burden, but it would take generation, at least to do away with it and none of them think that long term.

It's not massively different either...you pay more at first, less later, then more again.

[scottsdad]

1 minute ago, TxRover said:

Seem ideal for @scottsdad

My missus once bought me a pen with a drawing of a cock on it.  Apparently to remind me "not to be a knob"

I never did take it to my office.

[Sergeant Wilson]

Just now, TxRover said:

It's not massively different either...you pay more at first, less later, then more again.

I was thinking more about social security is non-contributory, a safety net if you have nothing. They could do away with that tomorrow.

Retirement pension, in theory, is paid for and is proportionate to your contributions. We pay in to a government guaranteed scheme.

I realise, with an aging population, present day pensioners are being paid by those currently in work, as their contributions were used a while ago.

I think it the government reneged on contributory state pension, they'd be as well declaring the country bankrupt.

[Thane of Cawdor]

22 minutes ago, Sergeant Wilson said:

I was thinking more about social security is non-contributory, a safety net if you have nothing. They could do away with that tomorrow.

Retirement pension, in theory, is paid for and is proportionate to your contributions. We pay in to a government guaranteed scheme.

I realise, with an aging population, present day pensioners are being paid by those currently in work, as their contributions were used a while ago.

I think it the government reneged on contributory state pension, they'd be as well declaring the country bankrupt.

I don't know if this is still the case, but it certainly was back in the day. I think this example is quite close to the idea of means-testing a benefit that has supposedly been earned through National Insurance contributions.

Contribution-based JSA and pensions

Contribution-based JSA is not means-tested as such, but the amount of JSA payable is reduced on a pound for pound basis by any regular income the claimant receives from an occupational or private pension in excess of £50 a week. At current JSA rates (£73.10 a week from April 2015), contribution-based would therefore be withdrawn completely from those with pension payments totalling £123.10 a week or more.

[tamthebam]

1 hour ago, scottsdad said:

My missus once bought me a pen with a drawing of a cock on it.  Apparently to remind me "not to be a knob"

I never did take it to my office.

Would it have leaked in your pocket....?

[TxRover]

1 hour ago, Sergeant Wilson said:

I was thinking more about social security is non-contributory, a safety net if you have nothing. They could do away with that tomorrow.

Retirement pension, in theory, is paid for and is proportionate to your contributions. We pay in to a government guaranteed scheme.

I realise, with an aging population, present day pensioners are being paid by those currently in work, as their contributions were used a while ago.

I think it the government reneged on contributory state pension, they'd be as well declaring the country bankrupt.

Social Security (FICA) is certainly contributory. I paid 6.2% every year I worked on all of my earnings at first, and toward the end I'd get a peek above the cap for a month or two. There's also Medicare, with the total rate being 7.65% on every dollar until you reach the FICA cap ($168,800 for 2024), and then it drops to 1.45% on the rest. The pension payment from Social Security is a arduous calculation that heavily weights the first dollars versus the last dollars, so someone hitting the cap can net about three times what someone paying about 20% of the cap every year does. Also, employers have to pay the same amount as employees...which is why identifying workers as "independent contractors" is so popular, they have to pay 15.3% in taxes then.

[tamthebam]

We have the red and green man here. In Skopje they have... 

[Sergeant Wilson]

7 hours ago, TxRover said:

Social Security (FICA) is certainly contributory. I paid 6.2% every year I worked on all of my earnings at first, and toward the end I'd get a peek above the cap for a month or two. There's also Medicare, with the total rate being 7.65% on every dollar until you reach the FICA cap ($168,800 for 2024), and then it drops to 1.45% on the rest. The pension payment from Social Security is a arduous calculation that heavily weights the first dollars versus the last dollars, so someone hitting the cap can net about three times what someone paying about 20% of the cap every year does. Also, employers have to pay the same amount as employees...which is why identifying workers as "independent contractors" is so popular, they have to pay 15.3% in taxes then.

We're talking about 2 different systems in 2 different countries. 

The Main difference between us, is I won't go mental with a gun if my giro doesn't turn up.

[Melanius Mullarkey]

How much is the pension these days anyway?

[Leith Green]

41 minutes ago, Melanius Mullarkey said:

How much is the pension these days anyway?

I was doing my tax return yesterday and had to check my NI record, so this is bang up to date - £221 per week (assuming you were born after the mid 1950s).

It also rises (at the moment) by the triple lock which inflation proofs it for them. I struggle to see that still being in operation by the time I get to 67 tho.................

[Melanius Mullarkey]

34 minutes ago, Leith Green said:

I was doing my tax return yesterday and had to check my NI record, so this is bang up to date - £221 per week (assuming you were born after the mid 1950s).

It also rises (at the moment) by the triple lock which inflation proofs it for them. I struggle to see that still being in operation by the time I get to 67 tho.................

 

[alta-pete]

On 08/04/2024 at 16:03, BFTD said:

Our neighbours have a Bassett Hound that's the size of a St Bernard. Is this normal? I'd always thought they were fairly wee. Freaks me out when I'm doing the dishes and it's out in the garden, as I think my sense of depth perception has fucked up due to a tumour or something.

I'd take a picture but I don't want @Hedgecutter knowing where I live.

 

On 09/04/2024 at 14:29, BFTD said:

Not seen him yet today, but I don't remember them looking proportionally different to what I'd expect from a Bassett.

Apparently it's not that uncommon for them to grow to that size and they're considered a medium/large breed, so I guess I've only seen the wee ones. He's quite a chonky boy too, which probably helps with the overall Dogzilla look.

I'll just try to grab a picture. As DA says, Hedgecutter has detailed files on us already.

 

On 09/04/2024 at 22:25, BFTD said:

I'm having a Mandela Effect moment with this - I swear Bassett Hounds were a small breed in the dimension I used to live in. Then again, I could probably count the number of them I've seen in person on one hand.

The owner was out in the garden earlier with their other dog, the breed of which I'd forgotten, but it's a smallish Labrador and it gets dwarfed by Kaiju Droopy. Really hoping he's not on P&B  

 

[Hedgecutter]

18 hours ago, GordonD said:

Don't see how they could make that one fly. If you've been paying your National Insurance as well as into a private scheme then how can they refuse to give it back to you?

Unfortunately NICs aren't used exclusively for the state pension.  The NIC pot is also used for various other benefits, which are of course already means tested.

Political suicide aside seeing as polling days are in every pensioner's kitchen calendar, all that's going to happen if they threaten to make it means tested is that most people will say "what's the point in a private pension then?" and spend what would have been private contributions elsewhere.  Even with a private pension fund well above the average worker's retirement pot, most rely on the state pension top-up to live at a 'comfortable' level.  So the state one alone wouldn't be much different to a private pension minus the state one.  There's zero incentive to throw money away to opt for the latter.

I think Australia has a means tested state pension scheme, but I'm too lazy to check the details of how exactly it's means tested (total estate value, private pension pot value, whatever).

Edited April 11 by Hedgecutter

[Swarley]

31 minutes ago, Hedgecutter said:

 

I think Australia has a means tested state pension scheme, but I'm too lazy to check the details of how exactly it's means tested (total estate value, private pension pot value, whatever).

I've been here 16 years and I still don't really know. I leave all the money stuff to the Wife. 

My understanding is that there's a state pension which is a pittance and is means tested on income and assets. So the richer you are when you retire the less you'll get. 

Your employer pays money into a Super fund (Superannuation). That's a percentage of your salary and is compulsory. It's currently 11% and rises each year. So the higher your salary, the more you'll get. You can also voluntarily contribute more of your salary to your Super fund. 

You can also contribute to your own private retirement fund. 

@Eednud does that sound about right? 

Edited April 11 by Swarley

[Hedgecutter]

52 minutes ago, Swarley said:

I've been here 16 years and I still don't really know. I leave all the money stuff to the Wife. 

My understanding is that there's a state pension which is a pittance and is means tested on income and assets. Do the richer you are when you retire the less you'll get. 

Your employer pays money into a Super fund. That's a percentage of your salary and is compulsory. You can access that fund when you retire. 

You can also contribute to your own private retirement fund. 

@Eednud does that sound about right? 

It's compulsory here for employers to pay X amount too, but even with that your average British worker is well below the recommended target.

A fundamental issue to understand is what exactly is 'rich'? You'd imagine that somebody asset poor and cash rich would have a more enjoyable retirement than somebody asset rich but cash poor.

Is the lesson here 'do not buy a big house and spend everything on holidays instead'?

 

ETA: to play Devil's Advocate here, if people on lower incomes already pay less tax that than those on higher rate wages, should it be a big deal if the former should receive a better state pension?

Edited April 11 by Hedgecutter

[tamthebam]

6 hours ago, Sergeant Wilson said:

We're talking about 2 different systems in 2 different countries. 

The Main difference between us, is I won't go mental with a gun if my giro doesn't turn up.

Normal for Lanarkshire though

[Eednud]

3 hours ago, Swarley said:

I've been here 16 years and I still don't really know. I leave all the money stuff to the Wife. 

My understanding is that there's a state pension which is a pittance and is means tested on income and assets. So the richer you are when you retire the less you'll get. 

Your employer pays money into a Super fund (Superannuation). That's a percentage of your salary and is compulsory. It's currently 11% and rises each year. So the higher your salary, the more you'll get. You can also voluntarily contribute more of your salary to your Super fund. 

You can also contribute to your own private retirement fund. 

@Eednud does that sound about right? 

Sounds about right. A brief version of the means test is below. There are some additional benefits such as a Commonwealth Seniors Health Card entitles the holder to cheaper health care and discounts for some utilities but think they vary for each state or territory. This card is now available to some who don’t receive a state pension but meet an income test which is different from the pension test. Surprisingly despite being self funded retirees we qualified and get/will get a discount on electricity, council rates and state emergency services levy. 

If you draw a pension from your super fund there is a minimum you have to withdraw based on age, 4% pa below 65, 5% 65-74, 6% 75-79, 7% through to 14% 80 to 95 and older. 

As you say you can voluntary contribute more than your employer’s contribution to super but there is an upper limit which includes the employer contribution. Paying too much has tax implications. SMSF (Self Managed Superannuation Funds) are popular here but you’d need to be a financial whizz or have a good and trusted financial advisor.

It’s a complex system.

 

 

Assets test

To qualify for a full Age Pension as a single person your assets must also be valued below $301,750 if you own your own home, or $543,750 if you don’t own your own home.

You can still be eligible for a part Age Pension if your assets are worth less than $674,000 if you own your own home, or $916,000 if you don’t own your own home.

For a couple to qualify for the full Age Pension, your combined assets must be below $451,500 if you own your own home, or $693,500 if you don’t own your own home.

You can still be eligible for a part Age Pension if your assets are worth less than $1,012,500 if you own your own home, or $1,254,500 if you don’t own your own home.

Edited April 11 by Eednud

[Bert Raccoon]

My life insurance will pay out early if I lose a limb or an eye so I'm glad I have that to fall back on if all else fails 

[RawB93]

9 minutes ago, Bert Raccoon said:

My life insurance will pay out early if I lose a limb or an eye so I'm glad I have that to fall back on if all else fails 

You up for going halfies?

[Venti]

Pretty sure my neighbour is an Uruk-hai. Bald heid & pointy ears.