Freezing this Christmas

[firlandsfarm]

Thought you always make out you're winning fortunes , Firlands, didn't realise you were so screwed losing your £300 xmas spending money.

I don't see what I do or do not win has to do with the many pensioners who will feel the cold this winter (and I don't recall I have ever made out I'm winning fortunes). And I'm not at all screwed up about personally losing the payment. But do keep guessing about me if that pleases you.

The video actually plays the bit where KS recites someone who doesn't get up until midday for fear of the heating. How does that account with removal of the payment?

[firlandsfarm]

Thought you always make out you're winning fortunes , Firlands, didn't realise you were so screwed losing your £300 xmas spending money.

I thought Firlands was a farmer and Starmer couldn't give a fork about them either

I'm an ex hobby (pig) farmer ... pigs being the livestock, not me! But I live in a farming community so take an interest in what affects farming and the countryside.

[firlandsfarm]

Thought you always make out you're winning fortunes , Firlands, didn't realise you were so screwed losing your £300 xmas spending money.

I thought Firlands was a farmer and Starmer couldn't give a fork about them as well

What if you're a pensioner who farms in his spare time? Keir must REALLY hate you then.

Dunno, don't have any spare time these days.

[firlandsfarm]

- 64% of the self-employed between the ages of 60 & 65 have no private pension savings...

That doesn't surprise me. When I worked in the financial field many self employed would say they didn't need to build a pension pot because they had the value of the business. They would think that because they make say £30k profit each year they think the business is worth c,£300k. They all make the mistake that the buyer will deduct from the annual profit what they could earn by taking a job elsewhere, say £25k, so the actual profit in running the business is only £5k!

[sionascaig]

- 64% of the self-employed between the ages of 60 & 65 have no private pension savings...

That doesn't surprise me. When I worked in the financial field many self employed would say they didn't need to build a pension pot because they had the value of the business. They would think that because they make say £30k profit each year they think the business is worth c,£300k. They all make the mistake that the buyer will deduct from the annual profit what they could earn by taking a job elsewhere, say £25k, so the actual profit in running the business is only £5k!

Yup. I find it very worrying,

Two other groups in that age range (60 to 65) with over 50% having no private pension arrangements were: divorced women & single mums...

Hopefully they have other assets that can cover them but I suspect there are going to be a lot of future pensioners just relying on state benefits... Not a great place to be....

[ForFolksSake]

- 64% of the self-employed between the ages of 60 & 65 have no private pension savings...

That doesn't surprise me. When I worked in the financial field many self employed would say they didn't need to build a pension pot because they had the value of the business. They would think that because they make say £30k profit each year they think the business is worth c,£300k. They all make the mistake that the buyer will deduct from the annual profit what they could earn by taking a job elsewhere, say £25k, so the actual profit in running the business is only £5k!

Yup. I find it very worrying,

Two other groups in that age range (60 to 65) with over 50% having no private pension arrangements were: divorced women & single mums...

Hopefully they have other assets that can cover them but I suspect there are going to be a lot of future pensioners just relying on state benefits... Not a great place to be....

.... and still renting the property they live in today.

[Crazyskier]

FreezingThisChristmas.jpg


This is absolutely brilliant and make no excuse for giving it it's own thread. Does it make you feel proud Sir Keir?

Granny-harmer Starmer - Brilliant!

CS

[firlandsfarm]

Yup. I find it very worrying,

Two other groups in that age range (60 to 65) with over 50% having no private pension arrangements were: divorced women & single mums...

Hopefully they have other assets that can cover them but I suspect there are going to be a lot of future pensioners just relying on state benefits... Not a great place to be....

People generally don't pay attention to their retirement pot before it's too late to have any significant impact. They don't seem to realise just how much capital they need to generate an income. Let's say they can invest their pot in shareholdings expected to give long-term income growth. They may get a yield of say 3%. So for every £1,000pa of investment income to top up their paltry pension they would need over £30,000 capital.

Then you also have the "I want to retire 5 years early no-nothing". If you retire 5 years early this is the effect on your pension pot ...

You contribute 5 years less
Your fund is invested 5 years shorter at a time when it will be at it's maximum amount
If a final salary scheme the pension amount will have missed out on 5 years salary increases
The resulting pension will be payable for 5 years longer

The effect is that the pension will be about 50% of that expected at normal retirement! Now look at how much capital to cover that shortfall and remember the maximum original pension amount can only be 2/3rds of salary so the early pension will only be a maximum of 1/3rd of salary. And forget any notion of I'll be retired I won't spend as much. My experience was that clients had more time to spend!

Sorry for the long explanation (that is in agreement with you! ).

[firlandsfarm]

Granny-harmer Starmer - Brilliant!

CS

Yeah, "Starmer" is a very unfortunate name.

[ForFolksSake]

FreezingThisChristmas.jpg


This is absolutely brilliant and make no excuse for giving it it's own thread. Does it make you feel proud Sir Keir?

If you want to help get it to No1
You can buy it on:
Amazon Music, Itunes, Apple Music, Spotify,
If you want to donate directly there's a Just Giving page.
All money goes to Age UK

https://www.msn.com/en-gb/entertainment ... 41#details

[jimibt]

Yup. I find it very worrying,

Two other groups in that age range (60 to 65) with over 50% having no private pension arrangements were: divorced women & single mums...

Hopefully they have other assets that can cover them but I suspect there are going to be a lot of future pensioners just relying on state benefits... Not a great place to be....

People generally don't pay attention to their retirement pot before it's too late to have any significant impact. They don't seem to realise just how much capital they need to generate an income. Let's say they can invest their pot in shareholdings expected to give long-term income growth. They may get a yield of say 3%. So for every £1,000pa of investment income to top up their paltry pension they would need over £30,000 capital.

Then you also have the "I want to retire 5 years early no-nothing". If you retire 5 years early this is the effect on your pension pot ...

You contribute 5 years less
Your fund is invested 5 years shorter at a time when it will be at it's maximum amount
If a final salary scheme the pension amount will have missed out on 5 years salary increases
The resulting pension will be payable for 5 years longer

The effect is that the pension will be about 50% of that expected at normal retirement! Now look at how much capital to cover that shortfall and remember the maximum original pension amount can only be 2/3rds of salary so the early pension will only be a maximum of 1/3rd of salary. And forget any notion of I'll be retired I won't spend as much. My experience was that clients had more time to spend!

Sorry for the long explanation (that is in agreement with you! ).

very good explanation. i was self employed all my working life and rather than a pension fund, I opted to put it into small affordable properties that the kids lived in when studying/finding their feet. at the point where i have have need for it, these will be sold to fund my pension needs. the reason things ended up this way was due to me being a bit of a late starter -fanny arsed around playing in bands til late 20's and then got involved in small startups in my 30's. the thought of a private pension wasn't on my radar and with the extra income i had, i took advantage of cheapish flats with a view to it serving a dual purpose. 25 years later, it still doesn't seem like a bad approach to have taken but am fully aware that this option prolly isn't possible nowadays.

[ForFolksSake]

That doesn't surprise me. When I worked in the financial field many self employed would say they didn't need to build a pension pot because they had the value of the business. They would think that because they make say £30k profit each year they think the business is worth c,£300k. They all make the mistake that the buyer will deduct from the annual profit what they could earn by taking a job elsewhere, say £25k, so the actual profit in running the business is only £5k!

Yup. I find it very worrying,

Two other groups in that age range (60 to 65) with over 50% having no private pension arrangements were: divorced women & single mums...

Hopefully they have other assets that can cover them but I suspect there are going to be a lot of future pensioners just relying on state benefits... Not a great place to be....

.... and still renting the property they live in today.

.... and I suspect public sector pensioners will have there state pensions means tested just like the winter fuel payment.
Public sector pensioner's don't realise it yet but before long they will be bailing out the rest of us

[firlandsfarm]

very good explanation. i was self employed all my working life and rather than a pension fund, I opted to put it into small affordable properties that the kids lived in when studying/finding their feet. at the point where i have have need for it, these will be sold to fund my pension needs. the reason things ended up this way was due to me being a bit of a late starter -fanny arsed around playing in bands til late 20's and then got involved in small startups in my 30's. the thought of a private pension wasn't on my radar and with the extra income i had, i took advantage of cheapish flats with a view to it serving a dual purpose. 25 years later, it still doesn't seem like a bad approach to have taken but am fully aware that this option prolly isn't possible nowadays.

You made some good moves Jim and I'm sure you are very happy with the results. My only comment is that property will not be the right choice for everyone. The problem will be you cannot drip-feed realisations, like shares, it's an all or nothing asset. CGT is a very unfair tax when applied to property. You pay CGT even if there is no 'real' profit (not kept place with inflation). The CGT is a one year only calculation i.e. you only get one year's exemption with no credit for the previous annual exemptions you were unable to use. If the property value does keep up with inflation you are deemed to have made a profit whereas in real terms you have only broken-even so you are effectively being taxed on inflation! And don't sell at the moment, CGT singles out residential, and particularly BTL (and yes, that includes family if paying rent and of course that will be declared for IT purposes! ).

It seems you have owned the properties for many years so I assume you are sitting on some nice profits A favourite tactic going back a few years was to remortgage the property which releases some of the equity without creating a disposal. Note: I am referring to a normal remortgage, not an Equity Release scheme with high accumulating interest rates. Yes Interest rates were lower then so the cost of the remortgage was small, maybe they will return to those low levels again in the near future. The equation is ... can I create an investment return from the remortgage capital greater than the interest being charged.

[jimibt]

very good explanation. i was self employed all my working life and rather than a pension fund, I opted to put it into small affordable properties that the kids lived in when studying/finding their feet. at the point where i have have need for it, these will be sold to fund my pension needs. the reason things ended up this way was due to me being a bit of a late starter -fanny arsed around playing in bands til late 20's and then got involved in small startups in my 30's. the thought of a private pension wasn't on my radar and with the extra income i had, i took advantage of cheapish flats with a view to it serving a dual purpose. 25 years later, it still doesn't seem like a bad approach to have taken but am fully aware that this option prolly isn't possible nowadays.

You made some good moves Jim and I'm sure you are very happy with the results. My only comment is that property will not be the right choice for everyone. The problem will be you cannot drip-feed realisations, like shares, it's an all or nothing asset. CGT is a very unfair tax when applied to property. You pay CGT even if there is no 'real' profit (not kept place with inflation). The CGT is a one year only calculation i.e. you only get one year's exemption with no credit for the previous annual exemptions you were unable to use. If the property value does keep up with inflation you are deemed to have made a profit whereas in real terms you have only broken-even so you are effectively being taxed on inflation! And don't sell at the moment, CGT singles out residential, and particularly BTL (and yes, that includes family if paying rent and of course that will be declared for IT purposes! ).

It seems you have owned the properties for many years so I assume you are sitting on some nice profits A favourite tactic going back a few years was to remortgage the property which releases some of the equity without creating a disposal. Note: I am referring to a normal remortgage, not an Equity Release scheme with high accumulating interest rates. Yes Interest rates were lower then so the cost of the remortgage was small, maybe they will return to those low levels again in the near future. The equation is ... can I create an investment return from the remortgage capital greater than the interest being charged.

some very good points and if i'm honest, i'm kinda ducking the cgt for now, hence not planning to sell just yet. will investigate the options on that further down the track. funnily enough, i did remortgage one of them back in the mid noughties to pay for some repairs across them, but it was never a capital realisation in my head, just a cheap way to finance the work, but maybe my head was in that space .

anyway, this is all great free advice and gratefully received.

[ForFolksSake]

FreezingThisChristmas.jpg


This is absolutely brilliant and make no excuse for giving it it's own thread. Does it make you feel proud Sir Keir?

If you want to help get it to No1
You can buy it on:
Amazon Music, Itunes, Apple Music, Spotify,
If you want to donate directly there's a Just Giving page.
All money goes to Age UK

https://www.msn.com/en-gb/entertainment ... 41#details

Christmas parody song blasting Keir Starmer over winter fuel cuts tops iTunes chart