Other people's facepalm financial management
Discussion
walm said:
In fairness the money comes in (as you pay your taxes) and then goes out again (as rebates), so it is an income and expenditure for them.
And it does mostly go to higher rate payers!
And it does mostly go to higher rate payers!
It doesn't go anywhere. Higher rate tax payers pay more tax and are therefore deferring more. It isn't some kind of advantage.
Dr Jekyll said:
walm said:
In fairness the money comes in (as you pay your taxes) and then goes out again (as rebates), so it is an income and expenditure for them.
And it does mostly go to higher rate payers!
And it does mostly go to higher rate payers!
It doesn't go anywhere. Higher rate tax payers pay more tax and are therefore deferring more. It isn't some kind of advantage.
I am just talking about the way they have to account for it.
And of course higher payers, pay more (as the name suggests!) the point is that pissing off that small group (by say, reducing the shield from £50k to £10k in a matter of years) is politically astute since it's a SMALL group!
Pensions...
I get sent a summary of the financial news each day.
Close Brothers have issued a report saying that the average pension pot is now £15,579, just below the record of £16k.
Would be interesting to see what population the average covers, seems very low!!
The tick tock of a DC timebomb?
I get sent a summary of the financial news each day.
Close Brothers have issued a report saying that the average pension pot is now £15,579, just below the record of £16k.
Would be interesting to see what population the average covers, seems very low!!
The tick tock of a DC timebomb?
Struggling to find the report (deleted the mail).
Money Facts adds some details
http://m.moneyfacts.co.uk/news/pensions/uk-pension...
Money Facts adds some details
http://m.moneyfacts.co.uk/news/pensions/uk-pension...
ThunderGuts said:
Pensions...
I get sent a summary of the financial news each day.
Close Brothers have issued a report saying that the average pension pot is now £15,579, just below the record of £16k.
Average of all pension pots in existence? Or average of the total (from multiple pots) at retirement?I get sent a summary of the financial news each day.
Close Brothers have issued a report saying that the average pension pot is now £15,579, just below the record of £16k.
I imagine the numbers would be very different.
People job change a lot, and likely have a separate pension pot from each employment. I'm not sure what the average length of service is these days, but I'd be surprised if it's more than 10 years. For the younger generation it may be very short.
If that's really the average total that people retire on, then it's horrifying.
Mr E said:
Average of all pension pots in existence? Or average of the total (from multiple pots) at retirement?
I imagine the numbers would be very different.
People job change a lot, and likely have a separate pension pot from each employment. I'm not sure what the average length of service is these days, but I'd be surprised if it's more than 10 years. For the younger generation it may be very short.
I have about 10 pensions split across previous employees and AVC's. Longest is just over 10 years so the individual pots will be low.I imagine the numbers would be very different.
People job change a lot, and likely have a separate pension pot from each employment. I'm not sure what the average length of service is these days, but I'd be surprised if it's more than 10 years. For the younger generation it may be very short.
A pot is a pot so one value regardless how many separate pensions you have.
However im not surprised at such a low figure.
I expect the next generation average figure to be worse and that includes inflation. This generation have spent all their money on cars and holidays.
Should there be a law prohibiting the purchase of cars over £10k till you can show ISA savings of £200k? A bit extreme but you get the idea.
However im not surprised at such a low figure.
I expect the next generation average figure to be worse and that includes inflation. This generation have spent all their money on cars and holidays.
Should there be a law prohibiting the purchase of cars over £10k till you can show ISA savings of £200k? A bit extreme but you get the idea.
Jockman said:
"...the average pot of £29,417 held by today's 65-year-old..."
Now that's worrying.
I can see a lot of house downsizing on the horizon.
Loads of people have a range of retirement provision outwith pensions, though. Now that's worrying.
I can see a lot of house downsizing on the horizon.
There are even people (shock, horror) for whom the cultural norm is that children look after their parents in old age. Why would you need a big pension pot if you knew your kids would make sure you were ok just like you did for your parents and they did for theirs etc?
drainbrain said:
Loads of people have a range of retirement provision outwith pensions, though.
There are even people (shock, horror) for whom the cultural norm is that children look after their parents in old age. Why would you need a big pension pot if you knew your kids would make sure you were ok just like you did for your parents and they did for theirs etc?
I have a feeling the sum of those two populations will still be pretty insignificant in the wider picture though. Sadly.There are even people (shock, horror) for whom the cultural norm is that children look after their parents in old age. Why would you need a big pension pot if you knew your kids would make sure you were ok just like you did for your parents and they did for theirs etc?
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