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General Chat Thread, The spring Budget in General; ...
  1. #61

    nephilim's Avatar
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    BBC News - Budget calculator: How will Budget 2014 affect you? < according to this, my household will be £269 better off a year...or £22.42 a month (rounding to nearest penny).

  2. #62
    zag
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    Looks like I'm 140 better off.

    I pay less Income tax and less National Insurance next year. Happy days.

  3. #63

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    Quote Originally Posted by zag View Post
    Looks like I'm 140 better off.

    I pay less Income tax and less National Insurance next year. Happy days.
    ah but are you better off in real terms than you were in 2010?

  4. #64

    nephilim's Avatar
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    in real terms compared to 2010, I am better off by £50 a year...so thats not bad. This is not counting that I am in a higher paying job than then though, if you factor that in, you are looking at a real term improvement of £2000ish a year better off.

  5. #65
    zag
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    Quote Originally Posted by JJonas View Post
    ah but are you better off in real terms than you were in 2010?
    I would hope so yes, I'm paying less tax and have more money deposited into my account each month.

    You cant fight inflation though, not sure why anyone thinks you can.

  6. #66
    hardtailstar's Avatar
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    im £167 better off roughly....

    i'd like to see that as i dont have money!

  7. #67
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    I think the Tory's are trying to go for the OAP vote! The removal of the requirement to buy an annuity seems like a massive change especially coupled with the increased ISA limit and 'pensioner bonds'!

  8. #68
    zag
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    Quote Originally Posted by flyinghaggis View Post
    I think the Tory's are trying to go for the OAP vote! The removal of the requirement to buy an annuity seems like a massive change especially coupled with the increased ISA limit and 'pensioner bonds'!
    Yep, hopefully it will get Britain saving.

    I couldn't be happier that the ISA limit has gone up, you could potentially save 1.2 million quid tax free in a lifetime now.

  9. #69

    nephilim's Avatar
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    @zag how is that possible? Please explain.

  10. #70

    sparkeh's Avatar
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    The pensions change is a double edged sword. Whilst the annuity market is terrible and making a lot of money out of pensioners (see how much the pensions companies shares fell when this measure was announced!) just handing over people's pension pot might not be good in the long term.

    Whilst responsible people will plan and use their money wisely, there is, rightly, concern that people could just blow all their money and fall back on the state. However:
    Quoth Pensions minister Steve Webb (BBC News - Minister fuels pension debate with Lamborghini comment) when talking about pensioners using their pot to buy a Lamborghini
    "If people do get a Lamborghini, and end up on the state pension, the state is much less concerned about that, and that is their choice."
    Would it have made sense to reform the annuity market to stop ripping off pensioners?

  11. #71

    localzuk's Avatar
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    People have the right to spend their money how they see fit. So, if they want to spend it all on 100,000 ice cream cones, that's up to them. There's no further assistance after that point, other than the normal state pension.

    Why should there be different rules regarding money for OAPs compared to younger people? Someone can't stop you spending your £200k savings on a giant model of a platypus right now, why should they when you're an OAP?

  12. Thanks to localzuk from:

    ButterflyMoon (21st March 2014)

  13. #72
    zag
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    Quote Originally Posted by nephilim View Post
    @zag how is that possible? Please explain.
    You can save 15,000 a year into an ISA which is tax free forever.

    If you save the full amount in for 40 years that's over a million pounds when you take into account the compound interest you get.

    By the time you retire you would be getting around £2,500 interest a month.

    EDIT: try this

    https://www.moneyadviceservice.org.u...ngs-calculator

    By just saving £500 a month assuming 4% average interest over your lifetime you could have half a million by retirement.
    Last edited by zag; 21st March 2014 at 11:07 AM.

  14. Thanks to zag from:

    nephilim (21st March 2014)

  15. #73
    E_G_R2's Avatar
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    I'm £127 a year better off but if I spend the £12 per month on wine i'm worse off

    Re pensions like many i've got a number of small pensions doing 4**k all and have been advised to cash them in when allowed rather than scrape £7 to £20 a month from them. The pension advisor said live a little because though you may live longer your quality of live may not be all its cracked upto be

  16. #74

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    Quote Originally Posted by zag View Post
    You can save 15,000 a year into an ISA which is tax free forever.

    If you save the full amount in for 40 years that's over a million pounds when you take into account the compound interest you get.

    By the time you retire you would be getting around £2,500 interest a month.

    By just saving £500 a month assuming 4% average interest over your lifetime you could have half a million by retirement.
    Which is exactly how pensions work; save a modest amount for a long time and get a big pot at the end. Up until 1998 pension investment was predominantly tax free too, until Gordon Brown decided to tax all share dividends which saw a 10% drop in income to those funds.

    Compound interest is also useful for paying the bill at the Restaurant At The End of The Universe.

  17. #75

    sparkeh's Avatar
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    Quote Originally Posted by localzuk View Post
    People have the right to spend their money how they see fit. So, if they want to spend it all on 100,000 ice cream cones, that's up to them. There's no further assistance after that point, other than the normal state pension.

    Why should there be different rules regarding money for OAPs compared to younger people? Someone can't stop you spending your £200k savings on a giant model of a platypus right now, why should they when you're an OAP?
    Ok, Devil's Advocate.

    Pensions are different to normal investments. Unless you have built your pot up solely on your own, the Government and your employer have also contributed to a fund that is designed to give you money throughout your retirement. Buying an annuity guarantees a level of income for the rest of your life. Handing over a large sum of money does not.

    Why? Because evidence from other countries indicates that quite a percentage of pensioners blow their pots on holidays, cars and real estate. Some of these will end up in a retirement home with no cash, regretting their decisions. Some are too scared to spend and leave a large amount of money in a low interest account that has a worse return than an annuity.

    Another side effect of this (again evidenced in other countries) that retirees plough their cash in to the buy to let market and further inflate the housing market making it harder for first time buyers which is the last thing we need at the moment.

    Some sources:
    Pension shakeup in budget leaves £14bn annuities industry reeling | Money | The Guardian
    http://www.challenger.com.au/funds/T...have_Apr12.pdf
    Osborne



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