Pension payments and making a loss in one tax year

[ChimpMaster]

I still don't see the point of having a pension that you have to fund yourself. I mean, it's OK if you have a decent permie job where the employer contributes to the pension fund, but if you're funding it yourself as a self-employed person or Ltd Co director then aside from the tax break I don't see any benefit (having it 'invested' in a stock market fund is a benefit either...).

Perhaps if I was 50 years old and had £200k sitting in my Co account, I would then see the benefit of dropping it all into a pension, knowing that I could get at it in 5 years' time. But if you have to wait 15 or 20 years to get at most of your money, then you're wasting your best years waiting to cash out at death's door.

BTW I have other plans in place that will hopefully (can never guarantee, even/especially with pensions) fund us well through retirement.

[SueEllen]

I still don't see the point of having a pension that you have to fund yourself. I mean, it's OK if you have a decent permie job where the employer contributes to the pension fund, but if you're funding it yourself as a self-employed person or Ltd Co director then aside from the tax break I don't see any benefit (having it 'invested' in a stock market fund is a benefit either...).

My reasons:
1. Tax
2. To stop me spending it

All pensions are is a savings wrapper, which due to their restrictions stops you spending the money when you are young when should be earning it instead.

[Cirrus]

(can never guarantee, even/especially with pensions)

You should be able to guarantee with a pension.

Markets go up and down but long term, investments must follow an upward trend. Obviously some things fall so you need to spread your risk intelligently but if the financial markets didn't give satisfactory returns overall then the whole capitalist basis of our society would be broken.

[Danglekt]

the whole capitalist basis of our society is broken.

FTFY