Page 2 of 5
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 6:55 am
by Tkydon
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 7:28 am
by Tsumitate Wrestler
Somehow I think if
"Near free retirement from the U.K government for a tenner a month" does not work, a YouTube playlist is not going to work.
It is just like those with lifestyle issues, (Health, weight etc). They often know what they need to do, or that they should do more to inform themselves.
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 8:20 am
by Tkydon
Tsumitate Wrestler wrote: ↑Thu Nov 30, 2023 7:28 am
Somehow I think if
"Near free retirement from the U.K government for a tenner a month" does not work, a YouTube playlist is not going to work.
It is just like those with lifestyle issues, (Health, weight etc). They often know what they need to do, or that they should do more to inform themselves.
Yeah, you can talk 'til you're blue in the face, but if they won't listen...
You can only try to SHOCK them into out of their malaise...
"What if you don't die? Then, what are you going to do? Well, you had better start planning for that scenario now!!!
Take a look at this Retire-Japan Forum!!!"
https://www.youtube.com/results?search_ ... +to+retire
https://www.cbsnews.com/news/retirement ... -bankrate/
https://www.cnbc.com/2023/09/08/56perce ... etire.html
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 9:50 am
by Moneymatters
Gareth wrote: ↑Wed Nov 29, 2023 2:52 pm
This evening, I was out with a few friends, four of us in total. Two of us pay into the Japanese and U.K. state pensions plus ideco/nisa but the other two don’t at all, despite being eligible. They say that they don’t believe there’ll be a pension in 20 years so they don’t pay it and they don’t trust the Japanese government with investments.
I’ve educated and then helped a few Brits get paying into the UK pension.
Well. It’s now year 3 and one has made back payments and is making regular payments. Another is making regular payments but yet to pay the back payments(they need to) And the least compliant has now has been accepted to make payments but hasn’t set that up yet.
What can I say. It’s a process... But I couldn’t have done this on my own. I’d like to thank my nagging coach for the endless guidance she’s given me. And my kids for the boundless opportunities to hone my skills. (“No. On the floor next to the washing basket isn’t in the basket! You don’t get food on the table next to the £#%*ing plate do you!” But I digress.)
My advice is to do some spaced repetition, don’t mention for a few occasions then BAM! ‘Holiday timeshare’ 2 hour locked room 50 page power point deck. Show them on your phone your projected pension.
Also praise even the slightest progress even a good question. Download the form and print/email it. Offer to sit and complete it with them. Explain that part costs nothing.
Oh. IMO, most people that say they doubt there will be a pension or they’ll die young don’t actually believe that. It’s to shut the convo down. So just ignore it. Maybe show how back payments cheat the system as they are treated the same as payments made decades ago. Same for voluntary payments to the Japan system after age 60. They have the same value as one made 40 years earlier.
And tell them once they get things in place, the next time their brother-in-law mentions their final salary pension they won’t need to try to blend with the wallpaper.
At the end of the day it also depends how close your relationship is. The closer it is the more you can push.
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 10:59 am
by Beaglehound
Entirely true about the non-trusting spiel serving to facilitate heads in sand. I used it myself until I was 30-ish. Of course they might be right while us sensible ones are being taken for a 'government-backed' ride, but the odds are on our side.
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 11:31 am
by Deep Blue
It's perfectly possible to be skeptical about the pension payments from the UK government, yet still contribute voluntary class 2 NIC's just in case. I'd very much count myself in this category - I think it's unlikely I'll get the UK state pension in its current form when I retire but I'm still happy to contribute given the huge pay-off if it does continue in the current form.
Re: How to talk to pension non-believers
Posted: Thu Nov 30, 2023 1:01 pm
by RetireJapan
Tkydon wrote: ↑Thu Nov 30, 2023 6:34 am
The problem of planning for retirement is, you don't know how long retirement will be...
So you need to hope for the best (an early sudden death) and plan for the worst (living to 150)
Re: How to talk to pension non-believers
Posted: Thu Dec 14, 2023 12:03 pm
by hana
I think there are many possible reasons why people don’t “invest”.
Regarding voluntary NI contributions in the UK, I don’t pay them because I think the UK government would tax at 40% the inheritance my Japanese wife would receive (given I’m likely to die before her).
In short, any assets in my name worldwide, including property, exceeding the nil rate band (325,000 pounds?), would be taxed at 40%, because the assets are passing from a UK domiciled person to a non-UK domiciled person.
Domicile = domicile for tax purposes, nothing to do with where you live. If born British, then UK IR treat you as UK domiciled, unless you can prove you have effectively cut links with the UK.
* I think paying into and claiming a UK government pension is quite a strong link. *
Years ago, I sought legal advice and had a document drawn up effectively renouncing UK domicile, ashes to be scattered in Japan, etc.
I am NOT an expert, don’t understand half the stuff on this forum, and may be completely wrong. But I guess that many readers are not aware of this potential trap of paying NI contributions. Of course, if you die in Japan, your spouse/partner inherits, and the UK never knows about it, then …
Reference:
https://assets.publishing.service.gov.u ... uk.pdf.pdf
https://taxscape.deloitte.com/article/i ... ouses.aspx
Re: How to talk to pension non-believers
Posted: Thu Dec 14, 2023 1:17 pm
by Deep Blue
Aren't Japanese inheritance taxes worse than UK ones? I know they are different, UK taxes the estate and then distributes... whereas Japan levies IHT on each recipient.
I also don't know if there IHT paid in the UK is offset against IHT paid here?
This is on my to-do list but it is incredibly painful to research and difficult to think about, especially as we don't know if we will end up living in Japan or the UK. Every time I have tried to go down the rabbit hole I have given up.
Re: How to talk to pension non-believers
Posted: Thu Dec 14, 2023 3:49 pm
by Tkydon
Deep Blue wrote: ↑Thu Dec 14, 2023 1:17 pm
Aren't Japanese inheritance taxes worse than UK ones? I know they are different, UK taxes the estate and then distributes... whereas Japan levies IHT on each recipient.
I also don't know if there IHT paid in the UK is offset against IHT paid here?
This is on my to-do list but it is incredibly painful to research and difficult to think about, especially as we don't know if we will end up living in Japan or the UK. Every time I have tried to go down the rabbit hole I have given up.
https://retirewiki.jp/wiki/Inheritance_tax