You're money and how you invest it

My exes mum worked every day of her life and lived a simple life. Worked, earned, paid tax and saved.

Worked side by side with someone who spent their wage as quickly as they earned it.

When they retired the other person got a state pension because they spent all their money. My exes mum didn't.

Once my exes mum died her savings got hit with inheritance tax.

Can someone tell me where the incentive is to save and look after your offspring?

Once you pay tax on your earnings why should you be taxed on it again years later?

 

It's unreal. They have the entire system set up so that you just cannot get ahead.....

It's the same with Supertax. Doubling your tax from 20% to 40% once you go over a certain salary bracket.
Where is the incentive for you to get promoted and make a good salary...when if you do then your tax doubles.? I'm sure people must have turned down wage rises for this reason, which is preposterous

 

Completely agree with you regarding income tax in general, though worth noting that new tax rates only apply to additional income. So when you get to 43% tax rates, your whole salary isn't charged 43%, just the amount over the threshold (43k at the moment). So never reject a pay rise for this reason alone.

Better yet, pay it into a pension. Pension contributions are paid before tax so very useful in allowing you to avoid these horrible cliff edges.

 

Losing out on compound interest * all over your plan though. I get the sentiment, but you cant ignore compounding.