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UK PENSION Rises and More with Blacktower Financial Management | Christina Brady on BayRadio
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Oct 29, 2024
The 'Triple Lock' on UK State Pensions doesn't reach expats in every overseas territory, but does benefit those living in Spain. However, is the British government keeping it in place? Christina Brady from @blacktowerfinancialmanagem7049 addressed this subject and more during her regular appearance with Moody this week. For any enquiries contact info@blacktowerfm FAO Christina or get in touch through the website: www.blacktowerfm.com Be sure to Like and Subscribe to our YouTube channel for more insights from BayRadio Spain, and follow us on Social Media: Website: http://www.bayradio.fm/ Facebook: https://www.facebook.com/BayRadioInSpain Instagram: https://www.instagram.com/bayradiospain/
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we specialize in protecting preserving
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and growing your wealth Black Tower
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financial management the team you want
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by your side visit Black toow fm.com
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Tuesday where we have Christina Brady on
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from Black Tower financial management
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just put back a week but uh all better
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now I said we'd um got a question from
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Mike who's listening in tenie just about
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the triple lock on pensions this is uh
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pensions obviously coming out of the UK
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and is it still a thing is that
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continuing I think it is yes it looks
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like it is yeah it looks like um that
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the state pension will increase by 88.5%
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in April
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2024 um as far as I know it's going to
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be honored uh barring some announcement
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from the government um I don't think
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they can go back on it now but I'm would
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expect if the rate carries on being that
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high they may try and do something going
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forward um because they just cannot
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sustain paying out that much there's not
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enough people paying into the state
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pension it's like a big pyramid scheme
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but people pay in and then they've got
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the money to pay out at the moment they
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haven't got the money but it is good for
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pensioners um it still doesn't beat
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inflation mind you but um you know it
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last year uh over 10% this year uh next
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year sorry over 8% um is good and as
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long as you live in one of the countries
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where you do get the Rises you're fine
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uh certain countries don't as we know
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like Australia Etc they don't get the
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Rises but if you're in Spain if you're
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an exper in Europe you do get the Rises
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on your state pension so hopefully that
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will help you in some way um as we said
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you know if you look at it Grace
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reinflation they're quite happy because
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it's only at
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9.7% yeah single digits but you know and
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they're going to give you 8.5 so still
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you know it but it's better than nothing
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and I think you know the trouble with
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that is though for some people it does
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now push them over the tax bracket in
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the UK in the UK you get a personal
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allowance of just over
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£12,000 um with the increase you've got
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this year and next year some people it
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could take them over the zero band and
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so you'll find yourself paying tax on
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the amount above that 12,000 I think
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it's 12,500 or 12,250 I can't remember
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because obviously I don't live in the UK
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but you will find yourself liable for
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tax if you live in the UK If you go
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above that obviously in Spain if you
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live in Spain it's different because the
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personal allowances are a lot less here
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unfortunately so you are most probably
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already paying tax on your state pension
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if you get it here in Spain okay so so
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yes so it's good news hopefully um at
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the moment it does look like they would
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be increased by 88.5% in April 2024 well
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if it is that date then that's likely to
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be pre-election so he's probably not
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going to uh mess with it before then I
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don't think no I don't think they'll
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want to upset um you know pensioners or
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anybody really coming up to an election
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no um anything you know that that they
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can do to try and win votes they will do
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so as I said I expected to stay in place
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for next year but after that I think
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there may be some adjustments to that no
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matter what the government is because
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they just cannot sustain that expense no
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and it's the same everywhere I mean same
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in Spain they're really struggling it's
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uh the weight on the pension system
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because of the just just ever increasing
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age of people but also you've got to
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look at the falling birth rate AC Europe
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in Spain in Italy the UK especially
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amongst the people that are paying into
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the pension so um yeah is it's a
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difficult thing people are cutting back
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on have having children because they
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don't think they can afford it or some
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of them don't think it's a good world to
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bring children into um so we are F
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seeing a falling birth rate which then
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means obviously there isn't the youth to
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come through to carry on pain into the
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system so as I said with UK State
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pensions I think if you're in your 40s
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50s 60s you will get a state pension I I
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think if you're below that I would be
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very very surprised if the state pension
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remains as it is and I think if it does
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carry on it will be means tested and the
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age you get the pension will rise
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substantially so I could see the ra
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raise age for getting your state pension
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rise to 70 even
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75 um and maybe being means tested so um
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I think the generations that are getting
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it now or the ones that are coming up to
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getting it I think you should count
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yourself lucky because things are going
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to change
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um you know there's too much debt for
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most countries and they cannot afford um
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to pay at the level they're paying at
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the moment yeah and hopefully and that
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also brings me to the thing is if you
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are uh sort of in your 40s or under you
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really need to make it start making your
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own pension Provisions um it sounds
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really cruel mentioning this but when
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people started working in the 80s '90s
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even early 2000 you got final salary
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pensions you didn't have to pay into
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them your employed La paid into them you
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got a pension unless you work in the
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public sector and then you're still on a
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cushy number but I'm sure that's going
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to change as well um I mean in yeah in
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for the yeah for the government like
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Civil Service Etc um you don't get final
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salary pensions anymore you have to
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contribute sometimes your employer
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contributes as well um but you really
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need to be putting money aside doesn't
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necessarily need to go into a pension it
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can go into a savings plan it can go
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into an investment plan they're more
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flexible than a pension and also when
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you take money out their tax differently
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so sometimes Investments and savings
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plans are more tax efficient when you
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want to draw money but you need to start
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doing that it's very hard to say that
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when you're when you're young because
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you think oh God why am I trying to save
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money for when I'm my old grayhair
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wrinkly but unless you want to be in
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poverty you need to think about it now
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and it's easier said than done I must
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admit I didn't start thinking about a
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pension really till I was in my 40s um
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and you know and I've worked in finance
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All My Life um so it but it's something
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people do need to look at and need to
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work on if you want to retire if you
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want to relax in your old age and you
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don't want to be working till you die
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you need to start doing something about
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it now yeah and there may be people in
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um situation I think we've mentioned
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this before as well where they they'll
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probably make up their 15 years in Spain
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if they've been contributing to get the
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minimum um Spanish state pension uh but
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it's worth if you can keeping up the
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payments if you've paid in enough
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already that it's worth while in the UK
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um keep the National Insurance
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contributions going so you'll get or
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topping it up you have till 2025 to top
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up your UK that that you get a forecast
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that tells you lots of people are doing
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that at the moment but also you're
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saying the minimum 15 years they keep on
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raising that minimum so at the moment
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it's 15 years but who says in 5 years
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time it may not be 20 years so what I'm
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saying is people cannot cannot
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necessarily you know count on getting a
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pension State Pension I I think you know
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if you are working at the moment and you
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are in your 40s 50s or 60s obviously
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you've got enough time to build up those
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years to get a state pension um in the
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UK please look at topping up for most
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people if you top it up it will pay off
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that top up within five years yeah once
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you start getting the state pension um
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so please please look at it it sometimes
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it is difficult to get hold of the um
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the department that deals with it but
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when you do they're very very helpful
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I've heard from people said you know
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once we've got through to them they're
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very very helpful at giving you
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information and sending it out so it's
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worthwhile looking into it you will need
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your UK uh obviously insurance number um
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and you sometimes you have to sign on to
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a Gateway um but if you go on there it
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does explain it all and you can always
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phone them you may have to hang on for a
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while but it is worth it so please look
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into that if you have got a slate pinion
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and if you're coming up even if you're
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in your 50s or 60s it may be worthwhile
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topping that up yeah yeah um okay let's
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get on to two one or two bits from the
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business news as always there's a
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picture of Elon Musk in the business
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news did you see him at the um the AI
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Summit AT lley park it was last week
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wasn't it he turned up with Rishi sunak
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and others and just I I I don't think he
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was taking it that seriously started
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talking about Killer Robots and the like
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he's in his own time zone Elon Musk he
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does what he want he's like Mr Burns he
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can just do whatever he wants I think he
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just sniffs tiex and then comes out yeah
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it was just F me but the thing is he's
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he knows his stuff anyone that tried to
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take him on in you know a sort of debate
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he timeing nuts doesn't matter who you
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are he is a genius but um otherwise you
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wanted to talk about we work which is
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quite a big deal this is a big news
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story it is we work which is the office
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sharing company has filed for bankruptcy
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in the US and once this was the most
8:47
valuable us startup company okay so and
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it's happened very very quickly what
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they did was obviously um they lent out
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office space and you could share office
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space due to coid the demand in that
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fell and it hasn't really recovered so
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as far for bankruptcy in the UK has it
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has obviously offices in the UK in the
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US sorry has offices in the UK so it
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just shows that I do say to people you
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know sometimes if you want to invest and
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you want to take a punt on something
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look at startup companies but that just
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shows one that shows so much promise if
9:21
you put money in there is now
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worthless so you have to be careful it's
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a bit like Bitcoin put in what you can
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afford to lose yeah I mean obviously the
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the pandemic was a massive part of that
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because people got comfortable working
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from home in a lot of cases but also the
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the co-founder of the company um he
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didn't seem to be too honorable a chap
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left left under a cloud and a
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multibillionaire people that leave under
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a cloud but but yeah so that's just to
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warn people you know obviously you know
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once Microsoft was a startup company
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Apple Etc so you do get good ones but
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when people invest in startup companies
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they usually spread what they're
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investing because they know you know 90%
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of what they invest in or more is going
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to fail but if 1% or 2% take off they
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could be you know Mega Rich also we've
10:10
got in the UK they're closing down
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another steel uh
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Works couple of those redundancies yeah
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oh yes that's yeah British steel yeah in
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scun yeah which I think is very sad I
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think you know we do need to keep these
10:25
industries going um and it most
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sometimes you get whole town a whole
10:30
area um that relies on that industry
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it's not just the the you know the the
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uh Works itself it's all the suppliers
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it's everything that goes with it so
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that's going to be a big big um knock on
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effect for that area especially coming
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up to Christmas and especially with
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times being so hard um it's just a shame
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that the government couldn't step in and
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do something as it would do if a bank
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was going under it just shows where
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their priorities are um you know certain
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industries should be supporting so that
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they can carry on and maybe make the
11:01
layoffs in a more structured way over a
11:03
period of time but the government is not
11:06
doing that and I think it's got his
11:07
priorities wrong if it was a bank um
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they'd be stepping in there either
11:11
secretly or you know it'd be out in the
11:13
press to try and bail it out if you look
11:14
what happened with UB with credit s UBS
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steing in and various other Banks
11:19
they're not allowed to go under yet
11:21
something that supplies an area with
11:23
work uh you know and and supports a huge
11:27
huge amount of people there's nothing
11:29
there to help them and I think that is
11:30
wrong um anything else on the markets I
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can't think of anything else at the
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moment young man I was just going to say
11:36
about um the the steel thing is that a
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case of where it's it becomes easier
11:41
cheaper to import steel than have it
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produced within the in your own country
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with the cost of Labor and the like yes
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but what you've got to think is the
11:48
stuff that's being imported is being
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subsidized by the government in that
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country and so this is where I think
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it's wrong you know they're not fair
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it's not an equal playing field oh no
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yeah yeah I'm just saying that's but
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it's you know that's what it comes down
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to sometimes it is there just it's just
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wrong um but that's just my thoughts and
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I think most people would agree with
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that but there's not a lot we can do
12:08
about it if governments are too weak to
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step in and actually tackle the problems
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you might argue that it's also it's in
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the north of England so they're not
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really that bothered too much anyway
12:16
let's get back to some more in just
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that's true I'm sorry if it was the city
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of London it' be completely different um
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but as I said I don't there's not that
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much positive news to make the markets
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go up at the moment I think people just
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need to sit tight with their investment
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obviously most people lost quite a lot
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in 2022 isn't recovering in 2023 you've
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just got to accept that you've just got
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to sit tight as I said all being well
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things will start to recover 2024 2025
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but with everything you've just got to
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sit tight and please don't panic if you
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sell once the Market's full you're
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crystallizing a loss please please don't
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do it and don't you know don't uh sit
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there and have a go your pension
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companies your financial advisors
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whatever because your pension has hasn't
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made that much money if the markets and
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and there isn't that growth there how
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are they going to make you money and be
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very very careful of scams at the moment
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do offer you returns that are way above
13:09
what you can expect in the market I've
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told you the rates you can expect if
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you're if you're offered anything like
13:14
more than that some people been offering
13:16
10 12% on different schemes please
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please it is too good to be true yeah
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okay well rather than make you sit
13:23
through another tune and maybe a break
13:24
and stuff we might as well unless
13:26
there's anything else you want to add um
13:28
how do we get in touch with you right if
13:30
you have any questions or you need any
13:31
advice at all please don't hesitate to
13:33
get in touch the best email is info@
13:36
blacktower FM that stands for financial
13:38
management.com if you put Bay radio or
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Christina or come through to me someone
13:43
should contact you almost straight away
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when you put in inquiry if you don't
13:46
hear within 24 hours for some reason
13:49
your inquiry hasn't got through and
13:50
please just put it in again you can
13:52
always go to our website which is
13:54
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