Top up your pension...
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  1. #11

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    Quote Originally Posted by DimPrawn View Post
    I think you'll find all the LibLabCon MPs are fully BTL loaded themselves, so it's the only true "safe in any economic event" form of investment.
    My last MP was, but then got rid of her BTL portfolio when she became an MP.

    I say "got rid of". What I mean to say is that the council (dominated by the party she represents) issued a load of compulsory purchase orders to buy the properties from her at above market rate and then demolish them.

    Allegedly.
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  2. #12

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    Everytime I look into pensions/annuities it just seems like a bit of a rip off/gamble. These new rules at first looked good but again just seem on closer inspection to be full of tax pitfalls and subject to the whim of future governments. Perhaps worth something if you are close to 55?

  3. #13

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    A pension is just a way to tie up your money so you can't get to it, under every changing rules, with large fees and high risk of loss, with tax deferred to when you take it rather than when you earned it.

    For public sector workers on final salary gold plated pensions (think Police for example) as wonderful thing. The Costa Del whatever is rammed with ex coppers playing golf all day aged 50.

    For everyone else it's the most stupid place to put their hard earned money possible.
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  4. #14

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    Quote Originally Posted by DimPrawn View Post
    For everyone else it's the most stupid place to put their hard earned money possible.
    Not quite. If you can get someone else to match your contributions it's sensible. Not great for contractors in my view, you might as well just put £15k in shares ISA each year.

    More broadly, it's a way to lock up your savings if you can't trust yourself not to spend them... for those on salaries that don't leave them able to have the standard of living they would like, that's probably quite valuable. The same principle as buying stamps or putting money in a special jar each week towards Christmas. Not necessary in theory, but people generally aren't great at budgeting, especially when you're saving far further into the future then you can really picture.
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    Quote Originally Posted by d000hg View Post
    Not quite. If you can get someone else to match your contributions it's sensible. Not great for contractors in my view, you might as well just put £15k in shares ISA each year.
    You'd need to get that £15k out of the company somehow first, which could well attract income tax. Having a company pension means you don't have to do that, plus it's an expense so you don't pay corporation tax on it.
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  6. #16

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    Unless you're a permie or public sector getting free money through matching contributions, standard pensions are a rip off. Property, investment isas, bonds and your own standard investments are the way to go. Property in particular offers inflation proofing. Diversification is key.

  7. #17

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    Quote Originally Posted by TheFaQQer View Post
    You'd need to get that £15k out of the company somehow first, which could well attract income tax. Having a company pension means you don't have to do that, plus it's an expense so you don't pay corporation tax on it.
    ... and, if it's a concern, that money is "Safe" from an IR35 investigation.

    I've put a fair bit into my SIPP in the last 18 months - it's grown by approx 15%. My cash ISA has earned 1.5% interest

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    Quote Originally Posted by mudskipper View Post
    ... and, if it's a concern, that money is "Safe" from an IR35 investigation.

    I've put a fair bit into my SIPP in the last 18 months - it's grown by approx 15%. My cash ISA has earned 1.5% interest
    Thats good but when can you get your money back? To me its no use ploughing in 1/2 million to get 30k a year for a few years, especially when allowing for inflation that will probably be worth little more than minimum wage. Ok new rules mean 125k is mine tax free (minus fees) but that leaves 375k that could end up tied in/lost or erroded. Meanwhile the opportunity cost of less liquid assets could be high

    Dimprawn is right the gold plated pensions were a no brainer everything else seems.to be poor by comparison

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    Quote Originally Posted by mudskipper View Post
    ... before the money grabbing bastards take more of your hard-earned

    Conservatives also announce plans to cut pension tax relief

    Assuming they do something along the lines of limiting relief to basic rate, I wonder if this would affect company contributions?
    And there was SimonMac questioning my pension top up a couple of weeks ago.
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  10. #20

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    Quote Originally Posted by ZARDOZ View Post
    Thats good but when can you get your money back? To me its no use ploughing in 1/2 million to get 30k a year for a few years, especially when allowing for inflation that will probably be worth little more than minimum wage. Ok new rules mean 125k is mine tax free (minus fees) but that leaves 375k that could end up tied in/lost or erroded. Meanwhile the opportunity cost of less liquid assets could be high

    Dimprawn is right the gold plated pensions were a no brainer everything else seems.to be poor by comparison
    At 55 when you can take out 25% tax free and take out a larger amount if you are willing to pay the tax on it.

    Everything is age and risk related.

    The sensible thing is to have investments in more than one thing.

    I know people who have ended up losing everything except their pension as it can't be touched.
    Last edited by SueEllen; 15th April 2015 at 03:31.
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