Pension stuff, how's it all looking ? HAve you prepared ?

[Greenman]

In the budget they announced a new £5k ISA allowance, so that's £50k a year between a couple.

Plus some NS&I fixed deposit schemes, it said they will be three year products for now, but they're taking a long term view of things, so if I can tie a million quid up in an NS&I 5% fixed deposit for the next three years I'll do that for my retirement income, it's an easy guaranteed 5%.
If I could I'd sign up for 40yrs and that would be me very happily tucked up with a retirement income.

Hopefully they use it exactly for people like me who want to create a very simple pension from a fixed deposit income stream.

So, and please correct me if i'm wrong here, they are once again opening up doors for people who already have a fair chunk of money to be able to make more money for doing fuck all?

Right?

But that's a large chunk of people now... You only have to look on here to see that people without money are the minority these days.

Your just pulling my pisser right?

[weeksy]

So, and please correct me if i'm wrong here, they are once again opening up doors for people who already have a fair chunk of money to be able to make more money for doing fuck all?

Right?

But that's a large chunk of people now... You only have to look on here to see that people without money are the minority these days.

Your just pulling my pisser right?

Nope. Look on any thread about money on here, the majority of people have £20k, £50k, £100k away in different 'funds' that's how it is. You and I not having that are very much in the minority.
Of course, part of that is down to the majority on here being at or near retirement and the perks of finances that allows for.

But i'd bet that a fair chunk on here don't have a mortgage to speak of.

[Greenman]

So, and please correct me if i'm wrong here, they are once again opening up doors for people who already have a fair chunk of money to be able to make more money for doing fuck all?

Right?

Yes mate, if you get off your arse and make some money, the government (at least in this instance) are trying to put things in place to help you keep hold of it and even invest it wisely.

E.g. my lad is twenty, doesn't do drugs/alcohol, works hard, saves hard, he's got £26k in savings, so this will help him.
My daughter is the same, a bit older, more than double in savings, doesn't drink/smoke/drugs, has worked hard since uni and knows she's responsible for her future, so doesn't waste her money.

If you don't want to work hard and you want other people to do the work for you, or have stuff handed to you, then you need to vote for the other lot.

Does working full time since i was 16 not count as hard work?

Your lad has had the advantage of having you and your mrs, you have both earned quite a good wage, no doubt this has helped your child very much!

I was born into a family with fuck all. My dad worked 3 jobs 6 days a week to support me and my 2 sisters, they will die without hardly any savings what so ever, just as their parents did, i have never been given a penny of inheritance.

Most people i know have savings purely from inheritance, nothing else. Working your tit's off unless you are in a very well paid job means fuck all now, i earn a half decent wage but live almost hand to mouth due to cost of living etc, how the fuck do i save?

When i was running the old business at startup doing 8am till 10pm most days i managed to save up about 20k over 10 years, which was then pretty much taken away from me over covid and the MD fucking me over when he went into Insolvency.

Anyway, i just don't think it's right that people who chunks of money such as £50k can be given options to move there money about and make 5% a year for doing nothing. All it does is increase the divide between those who and those who don't have.

I wouldn't mind it so much but all they seem to do is provide loopholes for people who are already fairly well off, and never really reward the other hard working demographic who are working just as hard, in fact, probably even harder!

[mangocrazy]

These days the Tory party exists solely to funnel more and more money and assets into the pockets of the rich and super-rich. It's called inequality and it's getting worse at a scary rate.

[gremlin]

Anyway, i just don't think it's right that people who chunks of money such as £50k can be given options to move there money about and make 5% a year for doing nothing. All it does is increase the divide between those who and those who don't have.

Just for balance, what do you think 'the government' do with the money people invest in govt. backed savings? The spread between what is paid out and earned is used to invest in housing, infrastructure, etc. It's not a get-rich-quick scheme for chancers, quite the opposite: it's risk-free savings for small investors, for example the 'hard working people' you make reference to.

[weeksy]

Oi, wind it in you pair of plums.

[Couchy]

In the budget they announced a new £5k ISA allowance, so that's £50k a year between a couple.

Plus some NS&I fixed deposit schemes, it said they will be three year products for now, but they're taking a long term view of things, so if I can tie a million quid up in an NS&I 5% fixed deposit for the next three years I'll do that for my retirement income, it's an easy guaranteed 5%.
If I could I'd sign up for 40yrs and that would be me very happily tucked up with a retirement income.

Hopefully they use it exactly for people like me who want to create a very simple pension from a fixed deposit income stream.

I’ll put nothing in nsandi when retired. When my dad passed all the financial institutions released funds just from a death certificate, nsandi wouldn’t and still haven’t released funds until the grant of probate is complete. Call me cynical but this is because a grant of probate publishes the value of a persons estate, this could be of interest to others. So for me I’ll have my money and investments outside a govt run savings scheme.

[Mr. Dazzle]

For balance like, Lloyd's also required probate to deal with my FIL estate whereas other banks didn't...for bigger sums!

Seems to be a bit random.

[Couchy]

For balance like, Lloyd's also required probate to deal with my FIL estate whereas other banks didn't...for bigger sums!

Seems to be a bit random.

Def random as Lloyd’s didn’t for us, there goes that plan. I’ll keep it in gold bars instead, put them on a chain and they’re jewellery so not counted as capital if you go into a home

[mangocrazy]

When Mum died she had about £20k in various investments and I was the executor on behalf of me and my Sis. Sis had heard that we might be able to claw back some of the care home fees; I wasn't convinced. But Sis wouldn't let it lie so I reluctantly started the process (not my Sis...) As part of that process we had to apply for Probate and in doing so that alerted DWP to start trawling through Mum's affairs. The upshot was that we had to shell out about £5k of Mum's £20k estate for whatever it was that DWP had levied.

Had we not applied for probate, DWP would have been none the wiser. And we never saw a penny of the care home fees refunded. There's a moral to this story...

[Mr. Dazzle]

My experience of the DWP and estates is that they don't know their own bloody rules and they'll try and take far more than they're entitled to, hoping you won't notice/care/be inclined to fight back.

It was worth us paying a specialist to check the DWP's sums.

Only leave gold bars to your kids

[Dodgy69]

So, and please correct me if i'm wrong here, they are once again opening up doors for people who already have a fair chunk of money to be able to make more money for doing fuck all?

Right?

Yes mate, if you get off your arse and make some money, the government (at least in this instance) are trying to put things in place to help you keep hold of it and even invest it wisely.

E.g. my lad is twenty, doesn't do drugs/alcohol, works hard, saves hard, he's got £26k in savings, so this will help him.
My daughter is the same, a bit older, more than double in savings, doesn't drink/smoke/drugs, has worked hard since uni and knows she's responsible for her future, so doesn't waste her money.

If you don't want to work hard and you want other people to do the work for you, or have stuff handed to you, then you need to vote for the other lot.

Does working full time since i was 16 not count as hard work?

Your lad has had the advantage of having you and your mrs, you have both earned quite a good wage, no doubt this has helped your child very much!

I was born into a family with fuck all. My dad worked 3 jobs 6 days a week to support me and my 2 sisters, they will die without hardly any savings what so ever, just as their parents did, i have never been given a penny of inheritance.

Most people i know have savings purely from inheritance, nothing else. Working your tit's off unless you are in a very well paid job means fuck all now, i earn a half decent wage but live almost hand to mouth due to cost of living etc, how the fuck do i save?

When i was running the old business at startup doing 8am till 10pm most days i managed to save up about 20k over 10 years, which was then pretty much taken away from me over covid and the MD fucking me over when he went into Insolvency.

Anyway, i just don't think it's right that people who chunks of money such as £50k can be given options to move there money about and make 5% a year for doing nothing. All it does is increase the divide between those who and those who don't have.

I wouldn't mind it so much but all they seem to do is provide loopholes for people who are already fairly well off, and never really reward the other hard working demographic who are working just as hard, in fact, probably even harder!

Yep...you can definitely work hard and still have fcukall in modern day Britain.

[JackyJoll]

In the budget they announced a new £5k ISA allowance

Interesting that it has to go into UK investments. Many people have been choosing stocks and shares ISA funds that exclude UK businesses, because of lack of confidence.

[Count Steer]

In the budget they announced a new £5k ISA allowance

Interesting that it has to go into UK investments. Many people have been choosing stocks and shares ISA funds that exclude UK businesses, because of lack of confidence.

Main thing is it's another £5k each pa in a tax free wrapper. Be interesting to see what the fund growth figures are like over time though. I suppose if you can dodge a slab of tax at 40% it doesn't need to be great. If it wasn't for the ISA thing I don't think I'd be looking at 'UK only' funds for a while yet tbh.

[Mr. Dazzle]

You wouldn't pay tax at 40% on stock/share earnings though, it'd be CGT?

Based on recent performance I think you'd largely be better off investing in foreign companies and paying the tax!

Maybe that's his plan. Everyone goes "sod off Jeremy, that's not worth much, I'm gonna invest in foreign firms and make more!" and then he gets a wedge of CGT

[Count Steer]

You wouldn't pay tax at 40% on stock/share earnings though, it'd be CGT?

Based on recent performance I think you'd largely be better off investing in foreign companies and paying the tax!

Yeah, soz, that was a bit sloppy of me. I was making a basic comparison with tax on share dividends (and that's not 40% either, it's 34% at the higher rate). It's early and I haven't had my third cuppa yet.

[Count Steer]

Apparently there are details to iron out but it looks like you can choose the fund, as long as it’s UK based. So I don’t know what’s not to like, as you say you get to bung another five grand into a tax free wrapper.

I was hoping that it’s been misrepresented and it’s actually just a blanket increase of the ISA limit, but atm it appears not.

The consultation period runs until June 6th, so it’s anyone’s guess. It’ll probably end up like the old PEP because that’s the easiest route for them to take.

Yup. I just tried to read the consultation document. I guess we have to wait and see what the consultation comes up with. I'll even be interested to see how they define 'UK company' tbh.
I'll have another read of the doc later...on a bigger screen.

[Mr. Dazzle]

I'm just assuming they mean a PLC listed in the UK?

[Mr. Dazzle]

Does seem a bit circularly perverse to pay tax on interest the government paid you

[Count Steer]

I'm just assuming they mean a PLC listed in the UK?

I imagine that's what it will end up as...which is very unimaginative to have multinationals like of Shell, HSBC, Unilever etc included when rapid growth/jobs will probably come from smaller outfits. Maybe there'll be 'UK Incubator Funds' ie funds available that invest beyond the FTSE 250?

Oh well, we'll have to wait and see I suppose.