Pensions

[Cream Cheese]

31 minutes ago, Suspect Device said:

What kind of account? Banks can go bust as well and at the moment they're paying a pitiful amount of interest anyway.

Only £75k of your money is guaranteed at the moment and that will change after Brexit because it was an EU law.

Also, the pension schemes are normally backed by the financial services compensation scheme I think.

I think it's 80k. I don't see that really changing much tbh. Banks that pull away from this are going to be hit hard if they do. It would require all banks to do the same thing and I don't see that happening. 

For me, pension schemes are too much of a grey area. I've seen people lose out on their pension funds because of some hidden technicality, or misinterpretation of the agreement.

[Suspect Device]

3 hours ago, Cream Cheese said:

I think it's 80k. I don't see that really changing much tbh. Banks that pull away from this are going to be hit hard if they do. It would require all banks to do the same thing and I don't see that happening. 

For me, pension schemes are too much of a grey area. I've seen people lose out on their pension funds because of some hidden technicality, or misinterpretation of the agreement.

 

It changed to £75k in January. Basically it was because of changing exchange rates to the Euro. It's meant to be about €100k.

 

Also the banks can't change the rules. They have to do what they're told.

 

Edited August 26, 2016 by Suspect Device

[Cream Cheese]

4 hours ago, Suspect Device said:

 

It changed to £75k in January. Basically it was because of changing exchange rates to the Euro. It's meant to be about €100k.

 

Also the banks can't change the rules. They have to do what they're told.

 

That's correct. But as you said yourself, that's about to change. I don't see banks choosing to reduce or remove protected savings within that kind of range, even after the UK takes the plunge. There's too much competition and if some banks did decide to do that, other banks would seize the competitive opportunities. I won't be withdrawing savings from my bank any time soon. Certainly not to invest into a pension scheme. My old man has already lost his pension savings through the whole BHS fiasco. I won't make the same mistake.

[Zetterlund]

The problem with the savings protection is that the compensation pot would only cover a fraction of the deposits affected by a bank default. The likelihood is that larger depositors would take a haircut to cover the deficit, as in Cyprus.

[Grim O'Grady]

Serious Q.

I've taken early retirement through a voluntary redundancy from work, what happens about my state pension, obvz not paying any stamp anymore, so will it be reduced when I hit state pension age?

Have any of you older c***s done anything similar & know the answer?

Thank you in advance. 

G-Bo(re) 

[Sergeant Wilson]

1 hour ago, Grim O'Grady said:

Serious Q.

I've taken early retirement through a voluntary redundancy from work, what happens about my state pension, obvz not paying any stamp anymore, so will it be reduced when I hit state pension age?

Have any of you older c***s done anything similar & know the answer?

Thank you in advance. 

G-Bo(re) 

How many years have you had covered by NI contributions and/or credits to date? If you're short of qualifying years you'll need to get credits by signing on or going sick. You could also pay class 2 NI ie Self employed. I don't know if you can still pay Class 3 NI, which would also protect your entitlement to pension while non employed. 

Edited August 28, 2016 by Sergeant Wilson

[Zetterlund]

As I understand it, you need to have been paying NI contributions for 30 years to get the full state pension. Less than this and you will get a reduced pension, but you can top it up with voluntary NI contributions. I got a letter about this after living & working overseas for a year in my 20's.

[Sergeant Wilson]

Just now, Zetterlund said:

As I understand it, you need to have been paying NI contributions for 30 years to get the full state pension. Less than this and you will get a reduced pension, but you can top it up with voluntary NI contributions. I got a letter about this after living & working overseas for a year in my 20's.

I think it's a good bit more than 30, unless it's been reduced recently, which I would doubt in the present climate.

[Zetterlund]

Just now, Sergeant Wilson said:

I think it's a good bit more than 30, unless it's been reduced recently, which I would doubt in the present climate.

I've not really thought about it since getting this letter about 12 years ago so not sure if it has changed.

Quick google -

You need 30 qualifying years of National Insurance contributions or credits to get the full basic State Pension. This means for 30 years at least one of the following applied to you:

you were working and paid National Insurance

you were getting National Insurance Credits, eg for unemployment, sickness or as a parent or carer

you were paying voluntary National Insurance contributions

If you have fewer than 30 years, your basic State Pension will be less than £119.30 per week but you might be able to top up by paying voluntary National Insurance contributions.

[Grim O'Grady]

3 minutes ago, Zetterlund said:

I've not really thought about it since getting this letter about 12 years ago so not sure if it has changed.

Quick google -

You need 30 qualifying years of National Insurance contributions or credits to get the full basic State Pension. This means for 30 years at least one of the following applied to you:

you were working and paid National Insurance

you were getting National Insurance Credits, eg for unemployment, sickness or as a parent or carer

you were paying voluntary National Insurance contributions

If you have fewer than 30 years, your basic State Pension will be less than £119.30 per week but you might be able to top up by paying voluntary National Insurance contributions.

Ta lads. Left skoo at 15 worked til I was 18 had 2 year on the rock n roll then worked until I was 53. So that's 30+ years. I'm not taking my shoes & socks off. 

G-Bo(re)

[Sergeant Wilson]

1 minute ago, Zetterlund said:

I've not really thought about it since getting this letter about 12 years ago so not sure if it has changed.

Quick google -

You need 30 qualifying years of National Insurance contributions or credits to get the full basic State Pension. This means for 30 years at least one of the following applied to you:

you were working and paid National Insurance

you were getting National Insurance Credits, eg for unemployment, sickness or as a parent or carer

you were paying voluntary National Insurance contributions

If you have fewer than 30 years, your basic State Pension will be less than £119.30 per week but you might be able to top up by paying voluntary National Insurance contributions.

My Pension calculation days are behind me. Maybe I was think you'd get more than the basic if you had more qualifying years. I think they done away with the earnings related part as they would never be able to afford to pay it.

[resk]

I'm paying some pretty hefty additional employee contributions now. The key thing for me is that you don't pay income tax on these contributions.

If your employer will pay "up to a maximum of x%" on condition that you put in y%, then you absolutely should put in that y% if you can at all afford it. If you don't do that then you're effectively allowing your employer to underpay you.

[welshbairn]

10 hours ago, Sergeant Wilson said:

My Pension calculation days are behind me. Maybe I was think you'd get more than the basic if you had more qualifying years. I think they done away with the earnings related part as they would never be able to afford to pay it.

It's if you opted out of the earnings related part that you get screwed, like everyone was encouraged to do in the Eighties. 

[energyzone]

On another note, it's scary how many people my age (32) have never stated saving for a pension. Lots don't see it as a priority and just something they'll do nearer time.

[SlipperyP]

I've now accumulated enough years to receive a state pension her in Thailand.

When I reach 65, I shall be entitled to 600 Baht per month and will increase by 500 baht every 5 years or so.

Sorted

[SlipperyP]

I've now accumulated enough years to receive a state pension her in Thailand.

When I reach 65, I shall be entitled to 600 Baht per month and will increase by 500 baht every 5 years or so.

Sorted

Sorry 100 baht every 5 years.

Getting old and fingers/mind not what it used to be.

[Grim O'Grady]

1 hour ago, energyzone said:

On another note, it's scary how many people my age (32) have never stated saving for a pension. Lots don't see it as a priority and just something they'll do nearer time.

Thatcherism coming home to roost mate. Her Govt was so anti-Union. When I was 30 (actually a lot younger) I didn't have to think about a pension, the union had already thought about it for me & done a good deal with my employers to sort out a pension for me. My missus is 45 she's worked over 20 years in a non Union place & has got no pension plan sorted, been telling her to get one, she's going to have f**k all by the time she hits state pension age & she's not going to be the only one. 

I'm going to building some massive institution on the edge of town in the next 10 years & call it the Poor House & get state funding to look after all the auld c***s with no pension. 

G-Bo(re)

 

[Sergeant Wilson]

17 minutes ago, Grim O'Grady said:

 

I'm going to building some massive institution on the edge of town in the next 10 years & call it the Poor House & get state funding to look after all the auld c***s with no pension. 

G-Bo(re)

 

Then burn it down?

[SlipperyP]

Then burn it down?

Tories would probably fund that idea.

[Grim O'Grady]

7 hours ago, Sergeant Wilson said:

Then burn it down?

 

7 hours ago, SlipperyP said:

 

Tories would probably fund that idea.

 

It's all I've got & an insurance policy etc etc. 

G-Bo(re)