POLL - Do you SIPP?

[MrC]

Having just read through this thread and seen some very excited views from both sides of the fence I was interested to find out who is choosing SIPPs vs alternative savings for retirement (property, ISAs etc) and seeing if theres a correlation with time till retirement.

[TheFaQQer]

Poll? where?

[MrC]

Poll? where?

There! Patience is a virtue.

Great tech this BB, obviously posts the thread before the poll goes up.

[DimPrawn]

To all those out there relying on a pension.

How can you plan anything based on the pension when:

1. Gordon raids the pension pot as he did with tax relief on dividends
2. The age at which you can take your pension rises constantly and no doubt will be 70 years when Labour get back in
3. When the tax relief element is being taken for "big earners". Already anyone earning over £130K lose the tax relief.
4. You still have to pay tax on the pension when you draw it, so you save no tax when you get the money back out.


The rules and benefits of a pension are changing every year, so how you think you can plan 15 years ahead and think a pension is somehow flexible for your needs in that time is laughable.

[DimPrawn]

PS.

For some public sector parasite on a gold plated final salary non-contributory pension scheme, then yes, whoo hoo, a pension is something to behold, but for an IT contractor having to put all that hard earned into a one way Labour controlled pension pot, you is 'aving a larf mate.

[minestrone]

I am going to move what I have (45k) into a managed SIPP and then to hell with the pot. I now intend to keep that and hand it over to my kids to put in their pots. In 50 years it might be worth something for them. With Brown's means testing and divs raid it really is worth nothing to me.

For my pension I put my full whack into ISAs and if I keep doing that for nearly 20 years I will retire when I am 55.

I work in SIPPs and the pension providers know that to be a better option but they will not be admitting it.

[mrdonuts]

MRC as in HMRC ?

none of your business hector

[MrC]

4. You still have to pay tax on the pension when you draw it, so you save no tax when you get the money back out.

Not true. If you are higher rate during work then lower rate taxpayer in retirement then there definately stands to be a substantial tax saving. Indeed the rules may change so it really just comes down to a calculated gamble. There's also the IR35 safety net of putting into pension.

Choose less money but have the guarantee of flexibility (although ISAs/tax free savings could always be widthdrawn) or chance your arm, aim to get more moeny but take the chance that the powers that be will screw you over.

So it really comes down to - do you feel lucky punk?

[bobhope]

If it's a question of letting some insurance company handle your pension or a SIPP, it's a no-brainer really.

I never did work out how my company pension provider managed to lose money during the late 90's mega bull market.

[DimPrawn]

.

So it really comes down to - do you feel lucky punk?

So it really comes down to - will Labour hold power between now and when you retire.