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Frugal Git

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  1. What was the problem with what she said? I heard it, it was just someone giving an emotional speech, at an emotional time for them. No big deal.
  2. More or less this. Great post. I feel incredibly sorry for the people who've been working throughout in our local shops for buttons. If people were going to get 2k for nothing, anyone working and earning less than that in 'key worker' roles should at least have been topped up to that too, if they weren't already via UC or tax credits. In terms of the (max) amount though, yeah I think it was about right.
  3. yeah, pretty much. All that would happen would be different loopholes for the rich and poor to navigate. The rest is a sideshow. Either way you’re voting for puppets. Corporations run things now, and no amount of national protectionism would change that (re the referendum vote).
  4. 😂 yeah it's terrible that every debate on here doesn't immediately descend into 'immigrants innit' any more. What we need is more socially ultra left, fiscally ultra right people, like this chap. An almost perfect description of me Anyone who votes, full stop, is kidding themselves.
  5. Actually, the same was just about possible for the last gen X'ers too. However, it was bizarrely better not to go into further education - and get straight into the workforce in 95. Those years spent at university totally f**ked me over in terms of house prices, and then immediately graduating into the tail end of the dotcom boom.....what an utter sh*tshow.
  6. I've always maintained that UK Gen X ers - especially early - mid, have the best position of all. Better than boomers. So much so I've been very surprised that there isn't any ire or memes towards them. Perhaps because they weren't necessarily in 'Power' to make the rules when the fantasy was first being created. If you got in the workforce around 1987-96, got a house in 94-99 (should have been doable), and got in the tail end of final salary pensions.... ...You're utter laughing. And you still have relative youth too.
  7. Look, the vast majority of young people are going to be f**ked in retirement unless they are lucky to inherit. It's choice between one of a house, kids, or retirement. Some families might be able to do two of those, but only very few will manage all three. That *will* be a problem for governments to come, where pension age benefit payments are going to have to be a lot greater than today. A much bigger problem than a few people who might have worked out they'll take their pension jam today, and manage it themselves tomorrow. Prioritising being able to look after yourself when you're old *is* a good thing. Use all the tools available.
  8. 😂 Where is the deprivation of capital? Anyone who does this has *less* money now and nothing to show for it for many years ahead. There is no Ferrari spent from savings. This is an allowed deferral of income. Why is it that the rules allow this? Go check every HMRC site. Go check tax credit and UC calculators. There is no limit on you doing this. It is a personal choice. Where do you draw the line? Is £100 into the pension OK, but 40K not? Should anyone entitled to benefits not be allowed to make pension payments at all, because it has this effect? Who says you cannot prioritise your retirement? This is an effect of doing so, not a reason to do it - it's a by product. I'd be prioritizing it anyway. Why are there people in government, and at HMRC who know about this, who happily say it's within the rules, not jumping up and down?
  9. Of course, the above assumed that family 2 can take that 8k p/a hit on their net income now, but when the carrot is 32k in the pension.... Certainly I'd consider that an easy choice before saving £700 p/m into an ISA....
  10. I explained it in the post. But here goes if you want the explicit version. Pension contributions are deducted from the figure used to calculate entitlement to benefits. This applies to both tax credits and universal credit. If your income is 50k, and you salary sacrifice 30k, you see all of that 30k into your pension. £1 for each pound of gross income. If your company offers their NI saving in full, that £1 turns into £1.138 Now, of course, you could just take the net income instead If you are a lower rate tax payer, you would see 68p out of that £1 In your hand right now if you took it. But wait...here's the thing. If your life situation is such that you rent and have kids, then guess what? If you also have a low income - say £20k - you may qualify for tax credits and universal credit. Let's use tax credits. For each £1 gross you earn you lose 32p in tax, and 41p is clawed back from your benefit payment. A 73% effective marginal rate. This is because of the taper rate on that benefit. Instead, you put that £1 in your pensionc which turns into £1.138. plus you keep the benefit payment. Thus for a 27p net loss in income today, £1.138 goes into the pension. Another Quick example which I've used before Family one earns 18k gross, family 2, 50k. Both rent, both have 3 kids. Gross difference between their incomes 32k. What's the net difference? Around 8k, thanks to Universal credit. Family 2 would be crazy not to dump that 32k into a pension. Dyor.
  11. My dear dad had a private sector final salary pension. He was one of the few who actually realised it was utter nonsense and how lucky he was. I thank him for being a sensible, thinking person and not someone who thinks he got it because 'he was worth it'.
  12. Final salary pensions were *always* a fantasy land Of promises that could never be fulfilled. They should not come back. They are imho part of the reason why young people's salaries are so rubbish - because our current t efforts are being used to plug the promises of those blackhole schemes. Deal with reality. There is no point in harking back to the good old days when things were created by actuaries who lived in cloud cuckoo land. The best you can do now is to take control. Control is good. A DC pension/SIPP gives you that.
  13. Partial Transfer into a sipp annually. Often nets you a bonus for doing so, lowers the fees and you can access the 800 lb gorilla that is vanguard funds a lot easier..most WP schemes don't have those I've found. With salary sacrifice, DC pensions can be are awesome if you're a lower rate tax payer too - especially because *current* benefit eligibility takes your P60 figure to calculate entitlement. 27p from net salary to get £1.138 into pension? Thank you very much. Crazy not to do so. Actively keep housing artificially inflated, but allow us to do this? Then do it. Sigh. A good pension scheme is a liquid as running water. You can choose to hold cash, gold, bitcoin (it does make sense), real estate, funds that rebalance themselves, direct equities. Whatever you want, whenever you want. Try selling an actual house on a whim.
  14. Exactly this..make hay whilst the sun shines.
  15. 1) open sipp. 2) get your tax relief and employer contributions into their scheme. 3) do a partial transfer annually out of company scheme into said sipp. 4) invest however you like, relax and understand that because you are doing something that 90% (or probably 99%) of the population are not, you are very unlikely to be the tax target. Check out just how damn good pension death benefits are. The reason people don't understand it is informational appartheid for the benefit of rich people. Property investment on the other hand...
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