The Big Finance, Money and Economics thread

Strummer

Orel Mangala Fan Club
Forget it and live your life.
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This reminds me of why around 90% of Germans rent, and don’t give a fuck.

Granted, tenant rights are significantly more protected here than in the U.K., but there is nothing to stop the U.K. implementing similar controls of rents and landlords as the Germans do.

The system here, whilst not perfect, and also suffering from a lack of available properties, does mean that as a renter, your rights are fully protected, with the full weight of law on your side, rather than the landlord.
 

Phooey

Jack Armstrong
Any advice for someone saving for their first family home??

Got most savings in crypto, some in stocks, no cash.

Still got at least 6 months before I can afford anywhere. Ideally save a bit longer to get somewhere bigger, but moving targets…
Have you got a Lifetime ISA yet? Tax free saving and the Government throw in an extra 25% when you go to buy your house.
 

Phooey

Jack Armstrong
Forget it and live your life.
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So houses were £50 in 1970 but everyone was paid nothing? Surely that's worse than now?

In reality the graph should show average monthly mortgage payments compared to average salary over the years. It will still look bad but takes into account the early 80's and 90's rates that nearly broke people.
 

Any Time Now

Viv Anderson
Hold onto your hats boys and girls
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Rzar

Ian Bowyer
Starting to feel glad I just went for the boring low risk method of just keeping the cash in my bank and putting the spare in a Lifetime ISA to save for a house.

I made a fake money account on one of the investment apps and it has lost loads.

A friend of mine put all his money into crpyto pretty much when it was at it height, he's lost over half of it now and I would imagine it won't be getting better any time soon. But what do you expect with crypto.
 

Project Zeus

Stuart Pearce
The cost of a house is growing faster than I can save, so I invested my money to try and close the gap.

I only have a small % in crypto, so I'm not too worried about that, but my MSCI All World index funds are fucked as well.

If I'm lucky I'll be able to pay a mortgage still when I'm 70

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Rzar

Ian Bowyer
I am in the same boat as you, although I am managing to save a lot at the minute so should be okay to buy a decent place in Summer 2023 as long as the world doesn't explode.

What banks will lend is my big issue. I am self employed and don't pay myself much as guarenteed incoming, they are even stingier to the self employed so I am looking at a 60-70% deposit at the very least for a place.

The cost of housing rising is extremely frustrating but I just want to get on the ladder so I can keep up, but it's inventiable when that happens - the market is crashing the very next day.
 

Barry

Where's me hammer?
Anybody got any advice on making larger pension contributions from you salary and the pros and cons of it?

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S Peel from Gedling

Stuart Pearce
Anybody got any advice on making larger pension contributions from you salary and the pros and cons of it?

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Your pension contributions will be tax free. If your employer matches that’s free money.

You’ll pay tax when you take it out though - once you’ve past your personal allowance (currently £12570).


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Barry

Where's me hammer?
Your pension contributions will be tax free. If your employer matches that’s free money.

You’ll pay tax when you take it out though - once you’ve past your personal allowance (currently £12570).


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Thanks, how do you go about it though?

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Judge

A. Trialist
Anybody got any advice on making larger pension contributions from you salary and the pros and cons of it?

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Depends what kind of pension scheme you are on ie auto enrolment, personal pension, sipp etc.
Realistically you need professional advice, not asking a predominantly group of strangers on a footie forum.
The only thing I can add to that is if you have any gaps in your NI contributions it's surprisingly easy and cheap to plug ant holes.
 

Captain Sinister

Senior doom Monger
Your pension contributions will be tax free. If your employer matches that’s free money.

You’ll pay tax when you take it out though - once you’ve past your personal allowance (currently £12570).


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As pension regulations stand now, when you start to draw on your pension (regulations currently state you must be at least 55 years of age before taking any of your pension; scheme specific rules may not allow you to access your pension until you reach an age that is greater than 55) you can take up to 25% of the accumulated pension pot as a tax free sum. When you start to draw the monthly income, the amount of the monthly drawing will go into the calculation of the income tax you will have to pay. And remember: if you qualify for a State Pension, the Government tells you it is "tax free". However this is misleading. Your annual State Pension is paid gross, without deduction of income tax, but the annual amount is taken as the first tranch of income against your personal tax allowance, meaning if your State Pension is (say) £8,000 per annum, then you will only receive £12,750-£8,000 of tax free pension incime. Anything over that will bear income tax.
 

Barry

Where's me hammer?
The jist of it is I've just gained a massive pay rise that puts me on around 63k, I know I'm gonna get dicked on it by the tax man especially on anything over 50k but was told you could salary sacrifice into your pension more than I already pay and it works out roughly the same... sounds like bullshit to me.

This ain't a willy waving exercise either Id never earnt more than 20k two years ago, and 30k last year so this is a massive and unexpected leap for me. Just looking for pointers from others that may have experienced it what to do.

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Winnits

Viv Anderson
I’d think you can divert as much as you like into your works pension then it will come out before tax. You can also pay into a private pension and claim back the tax on it at the higher rate.

You’re best off seeing a financial advisor though for the best way to go about things. It’s an opaque puzzle to most of us.
 

Lefkasman

Steve Chettle
The jist of it is I've just gained a massive pay rise that puts me on around 63k, I know I'm gonna get dicked on it by the tax man especially on anything over 50k but was told you could salary sacrifice into your pension more than I already pay and it works out roughly the same... sounds like bullshit to me.

This ain't a willy waving exercise either Id never earnt more than 20k two years ago, and 30k last year so this is a massive and unexpected leap for me. Just looking for pointers from others that may have experienced it what to do.

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Would donating some of it to a poor pensioner help? Only so they could look after it for you, safe keeping and all that.
 
The jist of it is I've just gained a massive pay rise that puts me on around 63k, I know I'm gonna get dicked on it by the tax man especially on anything over 50k but was told you could salary sacrifice into your pension more than I already pay and it works out roughly the same... sounds like bullshit to me.

This ain't a willy waving exercise either Id never earnt more than 20k two years ago, and 30k last year so this is a massive and unexpected leap for me. Just looking for pointers from others that may have experienced it what to do.

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Salary sacrifice is this easiest, if that's a possibility, as the pension contributions come out of your salary before before it is taxed.

So, for example, if you decided to "sacrifice" £13K into your pension then you'd just be taxed on the remaining £50K as take home pay.

The possible downside is that some financial institutions would then consider your salary to be £50, so it might effect your borrowing power if you were after a new mortgage for example.

I think you can pay upto £40K into your pension each year.
 

Barry

Where's me hammer?
Salary sacrifice is this easiest, if that's a possibility, as the pension contributions come out of your salary before before it is taxed.

So, for example, if you decided to "sacrifice" £13K into your pension then you'd just be taxed on the remaining £50K as take home pay.

The possible downside is that some financial institutions would then consider your salary to be £50, so it might effect your borrowing power if you were after a new mortgage for example.

I think you can pay upto £40K into your pension each year.
Thanks for the response, that's what I'd been told but I thought it might be bollocks.

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Quntib Hollox

First Team Squad
The jist of it is I've just gained a massive pay rise that puts me on around 63k, I know I'm gonna get dicked on it by the tax man especially on anything over 50k but was told you could salary sacrifice into your pension more than I already pay and it works out roughly the same... sounds like bullshit to me.

This ain't a willy waving exercise either Id never earnt more than 20k two years ago, and 30k last year so this is a massive and unexpected leap for me. Just looking for pointers from others that may have experienced it what to do.

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I’m in a similar position so have increased my company pension contributions. All depends on your current spending needs etc. but I have a small mortgage left and the kids have started to earn their own money.
The way you should look at it is if you can live comfortably on £50k if you put the remaining £13k into a pension fund you keep 40% of that instead of the taxman getting his hands on it. Bear in mind when it comes to drawing on that pension fund you can take 25% as a tax free lump sum and at current rates take a pensionable salary of just over £12k a year before you pay lower level tax on it.
 
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