Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
Been saying this for ages. Anyone continuing working 65 to state pension 67 is in for a nice surprise. At least the " depressed and anxious" will have more beer and fag money while they bang out a few more kids.
Couldn't agree more..... This budget was only for two reasons. To pay for the ever increasing benefit bill and to appease the Labour back benchers.
We as workers have been absolutely hammered.
Genuine question have you ever received benefits. as im sure 99.9% have at some stage.
Well you can say I went to a state school.. Got a GCSE or two then worked till 60 plus to pay for it all. Many many postmen will deliver to estates and know exactly what I am talking about. Seen it with my own eyes. Can't miss it. Politicians do not live on these estates , they live In big North London houses. The workers vote for them because they say they are the party of the working man . I actually know people who left school same time as me and have lived their whole life on benefits. It's not kind. You're not feeding pigeons. Keeping people trapped like this is miserable. I'm " lucky " because Royal Mail was a great place to work years ago and plenty of overtime if you wanted to graft and get on. No chance today. I totally disagree with stealing pensions accumulated over a lifetime to pay for the few who decide work is not for them
Been saying this for ages. Anyone continuing working 65 to state pension 67 is in for a nice surprise. At least the " depressed and anxious" will have more beer and fag money while they bang out a few more kids.
Couldn't agree more..... This budget was only for two reasons. To pay for the ever increasing benefit bill and to appease the Labour back benchers.
We as workers have been absolutely hammered.
Genuine question have you ever received benefits. as im sure 99.9% have at some stage.
Yes.... I received supplementary benefit for about 3 months back in the early 90's. Took a while to get it as they said I had initiated my departure. I was only 21 at the time.
I had applied for a job with Royal Mail and was successful, but my start date wasn't for a few months. I told one of the girls who I worked with, who in turn told the boss. He paid me for the rest of the week, but sent me home there and then.
Will this change to tax relief in 2029 does that mean their will be better savings options out there than AVC's?
As the employer does not contribute, the attraction (for me) of paying into an AVC is not paying Tax/NI on contributions.
I think my investments will be directed elsewhere when the change comes into effect.
There is no change to tax relief – it's a change to salary sacrifice(PSE)!
It's important to realise they are different things!
Tax relief will still apply to pension payments in exactly the same way as it's always done, so each £1 gross you pay will still only cost you 80p(assuming the tax rate stays at 20%).
But the benefit of PSE, and therefore the savings in NIC's, will be drastically reduced.
Another advantage to salary sacrifice would be to keep you below the 40% tax threshold especially if you are still full time and receiving your NRA 60 + 65 pensions
Will this change to tax relief in 2029 does that mean their will be better savings options out there than AVC's?
As the employer does not contribute, the attraction (for me) of paying into an AVC is not paying Tax/NI on contributions.
I think my investments will be directed elsewhere when the change comes into effect.
There is no change to tax relief – it's a change to salary sacrifice(PSE)!
It's important to realise they are different things!
Tax relief will still apply to pension payments in exactly the same way as it's always done, so each £1 gross you pay will still only cost you 80p(assuming the tax rate stays at 20%).
But the benefit of PSE, and therefore the savings in NIC's, will be drastically reduced.
I incorrectly used the phrase "tax relief"
We currently pay pension/AVC contributions before tax an NI, from 2029 a limit of £2000 will be placed on that.
I currently pay over £2000 a year into my AVC alone.
My question is if anything over the £2000 limit is subject to tax and NI would it be better invested elsewhere?
I incorrectly used the phrase "tax relief"
We currently pay pension/AVC contributions before tax an NI, from 2029 a limit of £2000 will be placed on that.
I currently pay over £2000 a year into my AVC alone.
My question is if anything over the £2000 limit is subject to tax and NI would it be better invested elsewhere?
Paying your RM pension contributions via salary sacrifice/PSE doesn't save you any income tax, it only saves you NIC's.
From 2029, any contributions over the £2,000 limit won't benefit from the 8p in the pound benefit that PSE provides.
But all pension contributions will continue to benefit from 20% tax relief(as long as you don't pay in more than you earn).
Therefore from 2029, the overall tax treatment of any payments into your RM pensions over £2,000, will be the same as with a personal pension.
Been saying this for ages. Anyone continuing working 65 to state pension 67 is in for a nice surprise. At least the " depressed and anxious" will have more beer and fag money while they bang out a few more kids.
Couldn't agree more..... This budget was only for two reasons. To pay for the ever increasing benefit bill and to appease the Labour back benchers.
We as workers have been absolutely hammered.
Genuine question have you ever received benefits. as im sure 99.9% have at some stage.
Well you can say I went to a state school.. Got a GCSE or two then worked till 60 plus to pay for it all. Many many postmen will deliver to estates and know exactly what I am talking about. Seen it with my own eyes. Can't miss it. Politicians do not live on these estates , they live In big North London houses. The workers vote for them because they say they are the party of the working man . I actually know people who left school same time as me and have lived their whole life on benefits. It's not kind. You're not feeding pigeons. Keeping people trapped like this is miserable. I'm " lucky " because Royal Mail was a great place to work years ago and plenty of overtime if you wanted to graft and get on. No chance today. I totally disagree with stealing pensions accumulated over a lifetime to pay for the few who decide work is not for them
I think you might be misguided or in fact deliberately misled by much of our national print media, as well as whats now a truly toxic social media environment with X and Facebook.
Been saying this for ages. Anyone continuing working 65 to state pension 67 is in for a nice surprise. At least the " depressed and anxious" will have more beer and fag money while they bang out a few more kids.
Couldn't agree more..... This budget was only for two reasons. To pay for the ever increasing benefit bill and to appease the Labour back benchers.
We as workers have been absolutely hammered.
Genuine question have you ever received benefits. as im sure 99.9% have at some stage.
Well you can say I went to a state school.. Got a GCSE or two then worked till 60 plus to pay for it all. Many many postmen will deliver to estates and know exactly what I am talking about. Seen it with my own eyes. Can't miss it. Politicians do not live on these estates , they live In big North London houses. The workers vote for them because they say they are the party of the working man . I actually know people who left school same time as me and have lived their whole life on benefits. It's not kind. You're not feeding pigeons. Keeping people trapped like this is miserable. I'm " lucky " because Royal Mail was a great place to work years ago and plenty of overtime if you wanted to graft and get on. No chance today. I totally disagree with stealing pensions accumulated over a lifetime to pay for the few who decide work is not for them
I think you might be misguided or in fact deliberately misled by much of our national print media, as well as whats now a truly toxic social media environment with X and Facebook.
Keep burying your head in the sand.
We can all see what's going on with this Country.
"Government"? That's too complimentary for this bunch of inept chancers lurching from crisis to damage limitation to crack-papering over.
As Johnny Rotten said decades ago, "Ever felt like you've been had?"
Must be many who voted Labour hoping for the promised upturn in the UK's fortunes who feel like that.
It looks like the knives are out for Reeves after yet more fibs about her mythical black hole.
The sooner this dreadful government is gone the better.
Indeed, we must hope for Reform to come in as soon as possible The man who brought us Brexit and declared Kwasi Kwartengs budget as “the best Conservative budget since 1986” will surely make us great again.
"Government"? That's too complimentary for this bunch of inept chancers lurching from crisis to damage limitation to crack-papering over.
As Johnny Rotten said decades ago, "Ever felt like you've been had?"
Must be many who voted Labour hoping for the promised upturn in the UK's fortunes who feel like that.
I sort of agree with what you say but the daily bombardment of almost unbelievable levels of bias from the Mail, Telegraph et al doesnt half make their job of sorting out our country much much harder than it should be.
It looks like the knives are out for Reeves after yet more fibs about her mythical black hole.
The sooner this dreadful government is gone the better.
Indeed, we must hope for Reform to come in as soon as possible The man who brought us Brexit and declared Kwasi Kwartengs budget as “the best Conservative budget since 1986” will surely make us great again.
I doubt there'll be much of a Country left to inherit after Labour have finished.
Maybe we need more immigration, higher taxes on the workers to fund people who can't be bothered working.
Then keep the disgruntled workers quiet using digital i.d's and remove trial by jury for serious dissenters.
Labour are a total disaster and it's about time their supporters apologised.
I've not much faith in any of them, I'll probably grudgingly vote Reform, because they're the best of a bad bunch.
We're probably past the point of no return, Labour will have destroyed the Country before 2029.
No doubt Starmer's bosses at Blackrock will buy up the UK on the cheap after he's ruined it.
I sort of agree with what you say but the daily bombardment of almost unbelievable levels of bias from the Mail, Telegraph et al doesnt half make their job of sorting out our country much much harder than it should be.
So it's the media to blame now for the many and various cock-ups, cover-ups and unforced errors that Starmer and co have committed then?
Trouble with that old biased media argument is that for every Mail and Telegraph, there's a Grauniad, Mirror, BBC, SKY etc. spinning the opposing line.
. I actually know people who left school same time as me and have lived their whole life on benefits. It's not kind. You're not feeding pigeons. Keeping people trapped like this is miserable. I'm " lucky " because Royal Mail was a great place to work years ago and plenty of overtime if you wanted to graft and get on. No chance today. I totally disagree with stealing pensions accumulated over a lifetime to pay for the few who decide work is not for them
The man who brought us Brexit and declared Kwasi Kwartengs budget as “the best Conservative budget since 1986” will surely make us great again.