What would you call an average wage?

Bassmansam said:
How do people not have a pension, i thought all workplaces had to pay into one for you now.
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I took my first one out aged 17 (I am 53 now) and paid into it since, £40 a month. The pot's value is well over 200K and since then I have added another 5 pension pots, most of them significant. No excuse for not having a pension as £40 quid a month was a tonne when I earned £45 a week, pennies when you earn like I do today, £47.50 a week :D
 
Housey said:
I took my first one out aged 17 (I am 53 now) and paid into it since, £40 a month. The pot's value is well over 200K and since then I have added another 5 pension pots, most of them significant. No excuse for not having a pension as £40 quid a month was a tonne when I earned £45 a week, pennies when you earn like I do today, £47.50 a week :D
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Opportunistic question here - is the £1m lifetime pension limit solely based on contributions? Or pot value?
 
watercooledman said:
i love dags but cats are surely easier to replace ?
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lol as if its a toaster or summat. I prefer my cat to some people I know.

Bassmansam said:
How do people not have a pension, i thought all workplaces had to pay into one for you now.
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I love the assumption that people are making it to retirement, haha lifes short my friend, that being said spose I better get paying into one the wife keeps nagging me.
 
dowie said:
Yeah, that is presumably skewed by high earners, especially workers in London etc.. median might be better to look at.
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Interesting that a few people have pointed that out as a flaw. 'Better' is only true in the context of what you're trying to highlight. At the end of the day high earners are still part of the economy, so it's not necessarily correct to say that they skew the figure (in the sense that everyone who is included in an average figure is 'skewing' it) and I don't think you'd automatically want to exclude them. But yes of course the figure is influenced by everyone who is included, which is why I mentioned that it could be broken down by various factors which would be more sensible in a lot of cases.
 
R.P.L said:
Interesting that a few people have pointed that out as a flaw. 'Better' is only true in the context of what you're trying to highlight. At the end of the day high earners are still part of the economy, so it's not necessarily correct to say that they skew the figure (in the sense that everyone who is included in an average figure is 'skewing' it) and I don't think you'd automatically want to exclude them. But yes of course the figure is influenced by everyone who is included, which is why I mentioned that it could be broken down by various factors which would be more sensible in a lot of cases.
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It is correct to say they skew the figure, just look at the median and the mean, look at the shape of the distribution... obvious skew is obvious....

(in case anyone is confused see here: https://en.wikipedia.org/wiki/Skewness)
 
krooton said:
We had a grand's worth of vet bills last month, insurance is essential (if you love your pets).
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My dog is 9 and was referred to a neurologist last month because he has problems walking. £3300 for MRI + CT scans and initial consultations. Surgery is looking £6-8k. So looking around £10k+ for treatment and then ongoing for rest of his life if as hoped the surgery is successful.

adam cool dude said:
My Dog is 8 and cat 9 and never once needed a vet bar routine jabs and neutering. Guess I am one of the lucky ones.
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It is like any insurance, peace of mind.
 
I have many pet spiders, I don't need to do anything, they just come out when I have settled down to watch the telly to scare the bejeezus out of me.

Cost me nothing mind.
 
dowie said:
It is correct to say they skew the figure, just look at the median and the mean, look at the shape of the distribution... obvious skew is obvious....

(in case anyone is confused see here: https://en.wikipedia.org/wiki/Skewness)
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Cheers. I never really liked statistics so I guess that's why I don't know the ins and outs of it.

EDIT: Because I don't really like statistics I didn't bother to read the article apart from the first couple of lines so I still don't know the ins and outs, but I'll take your word for it that the link backs up what you're saying :p
 
It's not really the question but feeling comfortable can be done on a very low wage, I have no mortgage, never need to look in my bank account (app tells me what's going out security wise) and have savings far exceeding my annual salary also wouldn't give a damn if my job finished tommorow
 
moon man said:
It's not really the question but feeling comfortable can be done on a very low wage, I have no mortgage, never need to look in my bank account (app tells me what's going out security wise) and have savings far exceeding my annual salary also wouldn't give a damn if my job finished tommorow
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Great place to be and you are right.
 
I felt wealthier when I worked part time at uni compared to now. I had no expectations and just enjoyed life with whatever disposable income I had.

Lifestyle creep definitely is real. We technically have around 60% of our net pay as disposable income each month but it never feels like that, as there always seems to be some sort of large purchase and / or bill that comes along.

The first lockdown was brilliant as we had nothing to spend money on and it made us realise that you can live off a lot less, relatively easily. Then I got into doing up the house and it's become a money pit.
 
dLockers said:
Auto enrolment is an easy comfort blanket but you should check how it is performing and not just be contributing the bare minimum. Also, a lot of places (mine included) have worse terms for auto enrolment than for proactively selecting the scheme you want to be a part of.


Give us some example numbers. I just can't quite get where your confidence is coming from with this. Unless your house value is extremely low?
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Doesn't matter what house value is what matters is mortgage interest rate and investment return rate.

Mortgage rate is circa 1.25% I can't be bothered to verify the exact percentage it might be 1.24%. regardless for every £1 I overpay mortgage by I'm saving 1.24% per year on that £ which also compounds as interest is charged on interest.

Now every £1 I invest I need to make at least 1.24% a year on it and reinvest it all again and make at least 1.24% the following year so it compounds. So if I make 16% in a few weeks from those £ I've smashed it.

If you require figures then I can understand why you are struggling with the concept figures don't matter. ROI does Vs interest on mortgage.
 
Psycho Sonny said:
Doesn't matter what house value is what matters is mortgage interest rate and investment return rate.

Mortgage rate is circa 1.25% I can't be bothered to verify the exact percentage it might be 1.24%. regardless for every £1 I overpay mortgage by I'm saving 1.24% per year on that £ which also compounds as interest is charged on interest.

Now every £1 I invest I need to make at least 1.24% a year on it and reinvest it all again and make at least 1.24% the following year so it compounds. So if I make 16% in a few weeks from those £ I've smashed it.

If you require figures then I can understand why you are struggling with the concept figures don't matter. ROI does Vs interest on mortgage.
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Happy to admit I'm being really thick here. But a one off 16% on £100 versus 1.24% on £150000 are two very different beasts, no?
 
dLockers said:
Happy to admit I'm being really thick here. But a one off 16% on £100 versus 1.24% on £150000 are two very different beasts, no?
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The point is, if he overpaid with that £100, he would save £1.24 of interest for that year, vs the £16 profit he made investing it instead, so he is up a net of £14.76
 
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