Budget on the way

[JohnD]

I remember Johnson promising not to increase Income Tax, although his previous promise of income tax cuts worth £8 billion for Britain’s highest earners has been ditched

Our previous couple of chancellors (but not Cummings) said they were aiming for a balanced budget where spending = tax

Spending's on the up.

Where will it come from? People who've got money? Or people who haven't?

The people who've got the money are generally not the workers, as wages have not increased in real terms in ten years, but people with capital, mostly older people.

National insurance is paid on wages, but not on investment income, or by people over state pension age.

Quite a lot of people have got pension funds worth a million.

Pensions still get tax advantages.

I wonder where the axe will fall?

 

[noseall]

You have to admire elderly gammon Brexers enthusiasm for self harm. And they do it with such grace.

 

[Brigadier]

Perhaps they'd rather it stay in the UK?

 

[noseall]

Perhaps they'd rather it stay in the UK?

Who cares?

 

[EddieM]

Who cares?

But conversely, due to the huge swing to a massive Tory majority, the vast majority don't care what you think. Democracy huh!

 

[fillyboy]

I remember Johnson promising not to increase Income Tax, although his previous promise of income tax cuts worth £8 billion for Britain’s highest earners has been ditched

Our previous couple of chancellors (but not Cummings) said they were aiming for a balanced budget where spending = tax

Spending's on the up.

Where will it come from? People who've got money? Or people who haven't?

The people who've got the money are generally not the workers, as wages have not increased in real terms in ten years, but people with capital, mostly older people.

National insurance is paid on wages, but not on investment income, or by people over state pension age.

Quite a lot of people have got pension funds worth a million.

Pensions still get tax advantages.

I wonder where the axe will fall?

How's the EU getting on with their budget, I hear talks have broken down.

 

[motorbiking]

I remember Johnson promising not to increase Income Tax, although his previous promise of income tax cuts worth £8 billion for Britain’s highest earners has been ditched

Our previous couple of chancellors (but not Cummings) said they were aiming for a balanced budget where spending = tax

Spending's on the up.

Where will it come from? People who've got money? Or people who haven't?

The people who've got the money are generally not the workers, as wages have not increased in real terms in ten years, but people with capital, mostly older people.

National insurance is paid on wages, but not on investment income, or by people over state pension age.

Quite a lot of people have got pension funds worth a million.

Pensions still get tax advantages.

I wonder where the axe will fall?

You’ll be amazed how little a £1m pension buys you if you opt for a conventional index linked conversion. Plenty of working people in the top 10% and even 5%.

 

[JohnD]

I certainly won't be.
It is a mathematical result of exceptionally low interest rates on government bonds.

And it might be a foolish choice for many.

Are you hoping that the many millions of citizens who cannot even dream of a comfortable pension will sympathise with your plight?

 

[Brigadier]

You’ll be amazed how little a £1m pension buys you if you opt for a conventional index linked conversion. Plenty of working people in the top 10% and even 5%.

All irrelevant to me anyway - I'll have to work until I drop - but I sometimes thought that it wouldn't be too stupid to just spend the money straight from your account.
£1M is £50k p. a. for 20yrs.
Probably not "the best" way to do it, but what's the average septagenarian or octagenarian to do with 50k anyway?

 

[JohnD]

Many people of mottie's age will have bought (at least) one home by the time they retire, unlike younger people who may be paying rent forever out of their meagre pensions and have next to nothing to pass on to their grandchildren.

Generation gap is a serious problem in greying Britain.

 

[SirGalahad]

All irrelevant to me anyway - I'll have to work until I drop - but I sometimes thought that it wouldn't be too stupid to just spend the money straight from your account.
£1M is £50k p. a. for 20yrs.
Probably not "the best" way to do it, but what's the average septagenarian or octagenarian to do with 50k anyway?

Wait on. Why? You were never part of a final salary pension scheme?

Nowadays current private pensions really are not that great. I've opted to invest privately.

 

[Munroast]

Many people of mottie's age will have bought (at least) one home by the time they retire, unlike younger people who may be paying rent forever out of their meagre pensions and have next to nothing to pass on to their grandchildren.

Generation gap is a serious problem in greying Britain.

the age group I guess you speak of, probably worked hard with few holidays, did not squander all their money on the latest iPhone and drove an old third or forth hand car. Young people now seem to live for today.
Me and the wife shared a rusted out car and I cycled to and from work. what young person would do that now, they would have two new SUVs outside the house. There is more money sloshing around now than ever before. priorities have changed.

 

[Notch7]

the age group I guess you speak of, probably worked hard with few holidays, did not squander all their money on the latest iPhone and drove an old third or forth hand car. Young people now seem to live for today.
Me and the wife shared a rusted out car and I cycled to and from work. what young person would do that now, they would have two new SUVs outside the house. There is more money sloshing around now than ever before. priorities have changed.

generation rent doesnt just hit young people, lots of couples and younger families cant afford to buy. Many people in this country are suffering in work poverty due to rent absorbing such a high proportion of their income. Add in the fear that if they lose their job due to illness the cruel UC system means they could end up homeless.

I am lucky, I have the remains of a mortgage to pay off, less than £200 per month. A family renting a house would pay £1,500 or more a month. The cost of the rent stops them from saving enough to get a house of their own. Its not nice to be paying for the landlords asset rather than your own.

 

[EddieM]

Wait on. Why? You were never part of a final salary pension scheme?

Nowadays current private pensions really are not that great. I've opted to invest privately.

Most of them closed years if not decades ago.

 

[Brigadier]

Wait on. Why? You were never part of a final salary pension scheme?

No.

Nowadays current private pensions really are not that great. I've opted to invest privately.

I have a private pension, although I doubt I'll ever see it.