FabSwingers.com > Forums > The Lounge > So this new pension thing ...
So this new pension thing ...
Jump to: Newest in thread
 | |||
| |||
| |||
Mr ddc | |||
| |||
| |||
| |||
"Are you in a public sector pension scheme? If so it's the end of contracting out. You used to get a rebate on NI contributions because you weren't entitled to the second state pension (due to paying into a public sector scheme) - but now that there's the new flat state pension the rebate has ended. So, you are paying more to not get any more. Sorry. " right with the 1st bit........ slight wrong with the second bit... if you were "contracted out" you would have been playing an NI rate of 10.6% instead of 12%...... now that perk is now longer available.... actually with the new state pension each year under the new scheme is worth more in real pension money then was under the old system (and a lot more for those people who for example were low paid, self employed, and those women who stayed home to look after children....) | |||
"Are you in a public sector pension scheme? If so it's the end of contracting out. You used to get a rebate on NI contributions because you weren't entitled to the second state pension (due to paying into a public sector scheme) - but now that there's the new flat state pension the rebate has ended. So, you are paying more to not get any more. Sorry. right with the 1st bit........ slight wrong with the second bit... if you were "contracted out" you would have been playing an NI rate of 10.6% instead of 12%...... now that perk is now longer available.... actually with the new state pension each year under the new scheme is worth more in real pension money then was under the old system (and a lot more for those people who for example were low paid, self employed, and those women who stayed home to look after children....)" I stand corrected, thanks Fabio. All I know is it's costing me about £50 extra a month in NICs for something where there is not a hope in hell of it still existing in any form when I'm 70. | |||
| |||
| |||
| |||
| |||
| |||
"To clarify I am in full time permanent employment and pay tax and NI thru normal PAYE deductions. I earn a reasonable crust (above average, but below super duper) This month I appear to have had NI deducted AND a pension deduction. Knowing my employer, wherever they can, they will pay the minimum they can get away with. All I know is I have £77 quid less going in the bank this month than I had last which is say my council tax or most of my weekly grocery bill or my car insurance or my utility bill So, where has my £77 gone or what's it going to ? That's the bit that is perplexing me." are you absolutely sure it is not your council tax... just because my council take council tax over 10 payments as opposed to 12... so i get march and april off... | |||
"You pay a minimum of 0.8% rising to 4% in 2018. Your employer pays 1% of your qualifying earnings, rising to 3% in 2018. The government pays tax relief at 0.2%, rising to 1% by 2018. " that is going to be the big jump that i think is going to shock everyone in a workplace pension in oct 18...... | |||
| |||
"You pay a minimum of 0.8% rising to 4% in 2018. Your employer pays 1% of your qualifying earnings, rising to 3% in 2018. The government pays tax relief at 0.2%, rising to 1% by 2018. that is going to be the big jump that i think is going to shock everyone in a workplace pension in oct 18......" My problem is that because I do some jobs on PAYE and most of my work is invoiced I'm going to have all these odd little amounts all over the place and I have no idea what they're invested in or how I access them. | |||
"You pay a minimum of 0.8% rising to 4% in 2018. Your employer pays 1% of your qualifying earnings, rising to 3% in 2018. The government pays tax relief at 0.2%, rising to 1% by 2018. " Towards what though ? That's what I would like to understand Is this the first step towards us being rid of state provided pensions ? In other words, am I 'saving up' so I can have a pension of some sort when I retire rather than adding to a pension that the state provides ? Apologies if I am being thick here | |||
"You pay a minimum of 0.8% rising to 4% in 2018. Your employer pays 1% of your qualifying earnings, rising to 3% in 2018. The government pays tax relief at 0.2%, rising to 1% by 2018. Towards what though ? That's what I would like to understand Is this the first step towards us being rid of state provided pensions ? In other words, am I 'saving up' so I can have a pension of some sort when I retire rather than adding to a pension that the state provides ? Apologies if I am being thick here " I think it is the beginning of the end of state pensions. The original rhetoric was that the state pension doesn't give you enough and the government needed to get people to start saving. This bit is supposed to be the non-state pension element. | |||
"To clarify I am in full time permanent employment and pay tax and NI thru normal PAYE deductions. I earn a reasonable crust (above average, but below super duper) This month I appear to have had NI deducted AND a pension deduction. Knowing my employer, wherever they can, they will pay the minimum they can get away with. All I know is I have £77 quid less going in the bank this month than I had last which is say my council tax or most of my weekly grocery bill or my car insurance or my utility bill So, where has my £77 gone or what's it going to ? That's the bit that is perplexing me. are you absolutely sure it is not your council tax... just because my council take council tax over 10 payments as opposed to 12... so i get march and april off..." No, sorry Fabio, I meant the amount less in my wages is (roughly) equivalent to a months council tax for me | |||
" Towards what though ? That's what I would like to understand Is this the first step towards us being rid of state provided pensions ? In other words, am I 'saving up' so I can have a pension of some sort when I retire rather than adding to a pension that the state provides ? Apologies if I am being thick here " in effect what the government want people to have are in effect 2 pension pots.... 1 state pot and 1 private pot, because people were leaving it well into their late 30s/early 40's before they were thinking about pensions..... obviously the earlier people start, the bigger pots are going to be, and the less reliant they will be on the state in later life.... | |||
" Towards what though ? That's what I would like to understand Is this the first step towards us being rid of state provided pensions ? In other words, am I 'saving up' so I can have a pension of some sort when I retire rather than adding to a pension that the state provides ? Apologies if I am being thick here in effect what the government want people to have are in effect 2 pension pots.... 1 state pot and 1 private pot, because people were leaving it well into their late 30s/early 40's before they were thinking about pensions..... obviously the earlier people start, the bigger pots are going to be, and the less reliant they will be on the state in later life...." I started my pot in my early 20s. As I now start the approach to being able to draw on that pot (at 55 if need be) it's worth bugger all as a pension. It is a lump sum that's worth more if I die. The kids will benefit. | |||
| |||
| |||
"Simple. You are paying for the illusion that one day, in the future, you may be able be retire on a generous pension. Eventually you will come to realise that the future is a moveable date, and the word 'generous' is a matter of opinion, not a defined figure.... I wouldn't worry about it.
Mr ddc" | |||
"... what exactly am I paying for ? All I know is that I have 'x' amount less in my net pay than I had last month. Am I now paying for my own state pension on a monthly basis or am I paying for some sort of booster pension that will pay me more than the state pension would be when I hit retirement age ? I know I should really understand these things better but hey, we can't be up to speed on everything "I was gonna pm you about this but I'm outside your age range...lol. If you still don't quite get it then feel free to pm me. | |||
 | |||
"Let's face it we'll all be working till were 80 "I'm planning to die at 60 to avoid that. | |||
"To clarify I am in full time permanent employment and pay tax and NI thru normal PAYE deductions. I earn a reasonable crust (above average, but below super duper) This month I appear to have had NI deducted AND a pension deduction. Knowing my employer, wherever they can, they will pay the minimum they can get away with. All I know is I have £77 quid less going in the bank this month than I had last which is say my council tax or most of my weekly grocery bill or my car insurance or my utility bill So, where has my £77 gone or what's it going to ? That's the bit that is perplexing me." Was there a pension deduction in the previous month? If so, was the same amount in March? How do the PAYE and NI payments in March compare to the payments in April? | |||
| |||
 | |||
