Winter fuel Allowance

absolutely the right answer and just a change in mechanism which would have avoided all the brouhaha. Starmer and Reeves are just very poor at politics. Still Raynor on manoeuvres. Leadership challenge not too far away.

 

They won't live longer - but it'll certainly feel like it lol.

 

I worked from 15 years old to 66 and got a decent pension, and with the state pension added together i get taxed,I've lost the WFA but i can live how i want so it doesn't bother me. I just hope it go's to the right people who do need it.

 

You've done well.

 

You must have been one of the last to leave school at 15 I’m guessing?

 

1972 the same year my Mam passed away. Finished school on the Friday started work on the Monday.

 

How would that work. A threshold of circa £12.5 k. (Which applies to nearly everyone. And create one for wfa which would be circa (based on £300 wfa) £11k. For those who recieve it and imo shouldn't. But that's a personal view.
Or increase the ones on credit to £14k no good to anyone if you are only on £10k income Not practical at all.

Means testing is the right way to go. imo.
I didn't get any this year and rightly so for me. Don't pay a penny in tax on £24k income. (Inc state pension) Totally legal and above board, using my crystallised and uncrystalsed pension pots.
So I would be penalised by £300. (Because i dont claim any allowances) If reduced to £11k.
It was easy for HMRC to evaluate.
Makes sense to me anyway. Lol.

 

How does someone earning £24k in pensions not pay tax? You lost me there.

 

Look at crystallised (Taxable above personal allowance) . and uncrystalised ( of which 25 % is non taxable. in pensions.)
I did not take all my tax free lump sum as most do in one go. And use that. Perfectly legit and just the way I use my pot.
You could say those that took out the lump sum In total. Could do the same.
Using state pension and savings (Lump sum ) To live on.

The reason I've not taken all the lump sum in one go (I used some to help my kids) is because pensions are doing well In general, (Far better than savings). In the market in my case. As are most of those that went the same route. (Not always the case btw. Basically not panicking at stock market drops helps) in real terms as stands. I had a tax free lump sum of 33k untouched. And have withdrawn over the last 3 years (upped it in Jan to 1k pm giving me £24k pa.inc sp) ). circa £14k. But due to my uncrystalysed (and crystalised I use that to take me up to my personal allowance. So not taxed. ) amount still rising in market terms. My tax free amount has only dropped 3k. So still able to use that as and when I want.

I hope that all makes sense. Nowt funny going on lol. Just the way I choose to do it. Not for all, as markets can go up and down as they say. but suits me and as I say, several others I know do the same, some with far bigger pots than mine.
Don't forget. I/we have drawdown pensions. If I didn't mention it.
Which works totally different to Annuities and Final salary.

The money in the pot, ( full amount) will pass on to my Mrs if I die first. And to mi kids when we both die. (Tax free if b4 75 in both our cases.)
I've started to make mi own tea lol.

Copied
When you die with a drawdown pension, any remaining funds are usually passed on to your nominated beneficiaries. If you die before age 75, these funds are typically passed on tax-free as a lump sum. If you die after 75, the funds may be subject to income tax when received by your beneficiaries.

Hence making my own tea lol.

And a reason I tell folk to seek financial/pension advice. If they can afford to invest. I'm not an advisor and do not pretend to be. Leave that to the experts. More than happy with mine. I They seem to have the finger on the pulse. Moving funds around. I have gone to low risk from medium. (Age related) But still getting great returns.

I have allus been interested in figures as maths was my favourite subject. And really understood most of the process of pensions as i was always interested even at works roadshows. And used my understanding to help others. But as i say, careful not to advise on how people should go. And tbh most companies I know will not allow anyone to press on without a reputable advisor. Plenty of scam artists out there. Been with mine for 20+yrs. Nationally recognised.

You did ask

 

Thanks Hooky, my pension was a final salary scheme and I took the highest lump sum I could which seemed to be the done thing in 2009. Cos I also like figures I have always managed my own investments in the main but I find now that age is impacting a bit and I now find it too much like hard work. I could do with a good advisor now I think.

 

I use Total financial services ossett. . A Local lad. Is our ( me and mrs) advisor. Young but very knowledgeable and backup If it's out of his remit. On which financial aspect is required.

There are things folk can easily do for themselves. Marriage allowance for example. If eligible. I've informed many over around 10yrs 1000s at work via what they called the hive. Many who weren't aware. Some replying they were successful.
My Niece another for example got around £1000 put in her bank last week and £300+ net going forward pa.
I told her about it. After finding out she and her husband were eligible.Only a month ago. Martin Lewis mentioned it this year. (May have done b4 as well)
Reason she got £1k btw. You can claim up to a max 3yrs back pay.

Other things like pension investing. My Mrs invested around £450pm net £570 - 20% tax relief. for around 3yrs when she did part time work. Circa £16.2k net. circa £20k gross
Market forces circa 8% pa made it around £24k+.
We then used Payback (drawdown) . Tax free over the next 3yrs.
An income of £670 pm . 50% more than her investments.

But even if market forces were 0% pa.
£550pm.

A market crash could affect it. But in the main recovers quickly. Happened on a few occasions. Eg outbreak of Russia Ukraine war. But was recovered fully within 2 months.
The trump fiasco with tarrifs reduced my pot by around £10k at the time.
My pot Is now fully recovered and £5k up. Many panic and withdraw as much as possible. (It does go up and down like a pro's knickers. Daily But generally up)
I remember a roadshow. On the financial crash early 2000s.
People who for example with £100k say. Saw it drop to £70k. Panicked and withdrew the lot with all the implications of tax in one financial yr.
Those that left it in. Were into the tune of nearly £200k in a decade or so. Circa 10% pa. Even though another crisis occurred late 2000s.
1984/85 made me aware we could survive on next to bugger all. So it hardened us to the fact owt happens we will survive.