Does anyone know anything aboutpensions? want to start one up but no idea who or what i should go with-all help appreciated!! cheers
Not all they're cracked up to be Tax-neutral (unless you're a higher rate tax payer). Annuities are rubbish (although may be reviewed soon). As illiquid as investments get (apart from perhaps stolen art treasures). Still, if you insist then first thing is to see if your employer offers a scheme that you can join. And seek independent financial advice (asking the BBS doesn't count).
I take this one Pensions are a total waste of f.u-cking money. Worth less than the money you put in. Annuity rate lottery. Dont bother, buy a house and rentitart.
RE: I take this one Certainly make sure you're using your ISA allowance each year, or as much of it as you can afford. It's only where your pension contributions will go, the charges are less and the return at the end of it is available whenever you want it and tax free.
I disagree In my opinion, a retirement plan of action should include Property, Liquid Investments (not ale) and pensions. Who wouldn't want the tax relief a pension gives ? summat for nothing that is. Granted theres little flexibility as to what you can do with your pot when you get to retirement but the fallen annuity rate is down largely to longevity so what do you expect ? Its obviously only worth less than was put in if the underlying investment gave a negative return which is not the fault of the pension itself ? I'm pumping large into a pension and my retirement feet and head will be adorned with the finest slippers and flat hat that man can buy
"Tax relief" As I say, tax neutral. The contributions attract tax relief but the income is taxable, apart from the option of a 25% lump sum.
My pension advisor is 63. Penions man: "Standard Life, good policy, cant go wrong." Me: "Why the f.u.ck are you still working at 63?" Pensions man: "Wibble."
RE: "Tax relief" So, as you say, 25% is completely tax free. What about the man who is a higher rate tax payer whilst working, getting 40% tax relief on contributions, who is then likely to be a basic rate tax payer in retirement ? he's quids in yes ? Or the fella who falls below the nil rate band in retirement ? thats pretty tax efficient in my mind I'm not saying that they're the be all and end all, but they aren't half as bad as some make out
I think what you mean is that I've been tossed off in the back of a taxi before. You'd be wrong. Train yes (standard class too)
Kinell. I'd have bet my house that you'd been fettled in the back of a hackney carriage. Dirk obviously has on the way back from Lovingstones. They pay a "munter levy" when they get in. "Two minutes frum Tarn love - an al pay t'munter levy". I've made all that up.
That's what I was getting at in my original post It's a much better proposition if you're a 40% tax payer. At basic rate I don't think the illiquid nature and the crap annuities return do enough to offset the 25%, even when you get to use your allowance after retirement. You'd have that if your income was coming from investments you'd made yourself where the charges are lower. And that 25% is at the point of retirement so you're in a hell of a mess if you want to start taking a personal pension and the market's in a slump. I don't want to be flippant here and you're right, for some people it is the best way forward but not for everyone. I'm semi-retired now and will retire fully when I'm 40. The last thing I need is retirement income that kicks in when I'm 65 (or 68, or 70, or whatever it will be). But, simplepeaches, the important thing is: whatever you do, DO SOMETHING! And the sooner you start the better. And seek impartial, professional advice. Be prepared to pay for it - if you get someone recommended who knows what they're talking about then you'll get the money back several times over in the long term.
