State Pension Could Run Out Next Year

[porca misèria]

Corporate and Wealth taxes such as CGT, Mansion Tax etc. are more likely than income taxes. When you add in NI, the governments taxes everyone at least 40% on everything earned over the personal allowance, and at the cliff edges 65%. It would be difficult to get much more out of people.

Have you looked at what regular income tax rates were post-war Blighty?

Being taxed at up to 99.25% (plus a supplement of up to 15% on some income) helped give rise to the real Brain Drain.

[Hail the Tripod]

Do you really think future governments will resist the temptation to grab people's large private pension pots? I don't.

Postal workers will be puzzled by the use of the future tense there.

[porca misèria]

This reminds of the Equitable Life saga, older boomers who had put in diddly squat

Interesting terminology there.

The winners in the Equitable case[1] were people who were pensioners at the time. So men born before 1935, women born before 1940.

The losers were anyone born after 1935/1940. The big losers being those with many years contributions and little time to make up the losses.

[1] And pensions in general, since that case was part of the start of the more general pensions crash.

[porca misèria]

They wouldn't have much to spend. For a higher rate tax payer putting £10,000/ annum into their pensions at best they would only get less £6,000/annum net and in many cases far less than that. If taxes were reduced then people would put less into their pensions and spend more.

You won't get me spending more until I can afford a house.

Oh, wait. That's now! Only it no longer really matters since rentals have become a real option.

[R K]

Taxy taxy.

You can either vote for those taxes to be paid by the wealthy home owners and millionaires in the South East or pay them yourself.

Be careful with your vote axe Eugene.

[crashmonitor]

Interesting terminology there.

The winners in the Equitable case[1] were people who were pensioners at the time. So men born before 1935, women born before 1940.

The losers were anyone born after 1935/1940. The big losers being those with many years contributions and little time to make up the losses.

[1] And pensions in general, since that case was part of the start of the more general pensions crash.

The Equitable Life valuations were a complete nonsense...even through the eighties and early nineties the annual bonuses approached 20%.

Although those that were born in the 1930s/ 1940s, indeed, took haircuts, and it was too late to make up the difference, they still enjoyed stellar returns. My father put in £5,000 in 1985 and it became £50,000 by the time he retired, whence he took a haircut of about a third. Those that joined a decade later barely got their money back.

Ponzi top.....Big winners

Middle Ponzi...big winners with hair cut

Lower Ponzi.....paying the piper.

Edited October 10, 2014 by crashmonitor

[VeryMeanReversion]

Do you really think future governments will resist the temptation to grab people's large private pension pots? I don't.

They will try to grab some but I don't think they will confiscate all of it. Whatever is left will give me a better standing of living than whatever will be left of the state pension. Pension benefits are huge for 40% tax payers using salary sacrifice. (Sacrificed income is nearly tripled in my case),

As a backup, I have a building that I could convert to residential use.

[19 year mortgage 8itch]

Bail-ins, bail-ins, bail-ins,

Bail-ins, bail-ins, bail-ins,

Keep those pensions bailed in, UK.

I hope everyone's higher rate tax relief gave them a warm glow of smugness when they made their contributions.

Because it's the biggest sense of warmth you'll ever get back.

[porca misèria]

Although those that were born in the 1930s/ 1940s, indeed, took haircuts, and it was too late to make up the difference, they still enjoyed stellar returns. My father put in £5,000 in 1985 and it became £50,000 by the time he retired, whence he took a haircut of about a third. Those that joined a decade later barely got their money back.

A lump sum? Most people would've paid in regularly over the years. £5k in 1985 was quite a lot of money: outside the London area it could've been a FTB house deposit.

I put in a small amount of money in the 1980s. Now written that off: it's more likely to be £50 than £50k by the time I retire. Would've been a big loss if I'd contributed through the '90s too, though I guess if I'd also been in Blighty to buy a house in the '90s I'd've effectively made that up.

[dpg50000]

A lump sum? Most people would've paid in regularly over the years. £5k in 1985 was quite a lot of money: outside the London area it could've been a FTB house deposit.

I put in a small amount of money in the 1980s. Now written that off: it's more likely to be £50 than £50k by the time I retire. Would've been a big loss if I'd contributed through the '90s too, though I guess if I'd also been in Blighty to buy a house in the '90s I'd've effectively made that up.

Late 80's in Lancashire, 3 bed terraces weren't much more than about 10K in some areas (and I don't just mean the worst areas).