Pensions

[Mailman]

http://news.bbc.co.uk/2/hi/business/4378366.stm

It seems one of the main problems is that people arent saving for their retirement.

So here is something radical...hows bout the government actually ENCOURAGE people to save by cutting all taxes on savings...encourage people out of the state pension by allowing them to "invest" personal property in to their pension retirement plan...NOT tax pension payments and so on.

Actually...the only real answer to the pension problem is to introduce a flat tax system!

After all, its only fair

Im kinda happy that when I move back to NZ in about 15 years with my golden pension I got when I went permie (easy money as its 35% of my salary and can transfer it as a lump sum payment to myself when I leave the country! ), along with my share options. Yeah...why would anyone want to go permie?

Mailman

[DimPrawn]

Bit pleased with yourself aren't you?

[Mailman]

What makes you think that?

But seriously though...this pension thing isnt as big a problem as your government is making out.

They should be doing everything possible to encourage people out of the governments pension plan and in to saving for your own retirement. After all, if they can get you to the point of where you can support yourself when you retire (because you had invested 2 or 3 personal properties in to your pension plan, saved massive amounts without the fear of taxation and so on) then isnt this a win win situation for the Government?

They no longer have to waste money on supporting you AND you retain your spending power when you retire (so no actual loss of revenue to the government as you are still buying lots of rubbish).

Mailman

[MrsGoof]

But seriously though...this pension thing isnt as big a problem as your government is making out.

you seem to be under the impression that they could organise a cockup in a brothel.

ffs he's been here 10 minutes and he still hasn't got to grips with G&T

[wendigo100]

I've got a couple of ideas:

1. Give full tax relief on dividends for equities in a pension fund

2. Remove means testing on state pensions, which is a disincentive to save

I bet Gordon Brown hasn't thought of them.

[Mailman]

1. Will never happen cause only the rich will benefit
2. Will never happen cause only the rich will benefit

Mailman

[ASB]

allowing them to "invest" personal property in to their pension retirement plan

Akshully you can do this - including your prime residence if you fee so inclined. But only since april this year.

[Having said that there are loads of reasons why this might be a bad idea, not least because I'm sure GG is busily dreaming up some "gotcha" for anybody who has done just that]

[Pondlife]

Akshully you can do this - including your prime residence if you fee so inclined. But only since april this year.

I thought that they abandoned this cos they thought that people might be buying second homes with pre-tax pension money (and of course that wouldn't be fair).

[ASB]

I thought that they abandoned this cos they thought that people might be buying second homes with pre-tax pension money (and of course that wouldn't be fair).

No. There are limits as to how much a pension fund can borrow towards property purchase, there is also the max 215k contribution in a year, and of course you don't want to go over the lifetime cap.

There is nothing to stop you contribution 100k say inmto your fund, the fund borrowing 100k and then buying a 200k flat.

You could sell your prime residence to the fund if you wished and then rent it back.

But, be bloody careful you know exactly what you are doing and the consequences if you are putting property into a pension.

Edit: you might onlu be able to borrow 50k. I'm not sure if the limit is 50% of the total paid or 50% of the cash put up (i.e. 1/3 of the price paid).

[ASB]

Im kinda happy that when I move back to NZ in about 15 years with my golden pension I got when I went permie (easy money as its 35% of my salary and can transfer it as a lump sum payment to myself when I leave the country!

Who told you that ?

I though only tiddly funds could be migrated to a cash payment on emigration. Perhaps it's because you are not British?