Pension Rule Change Next April

shockingmoment

whiteflag wrote:

Why are you thinking this is something worth looking at?

The objective of the post is to glean unbiased information, on which an informed decision may be made. At the moment I know nothing hence the post!

My gut feel is to invest in suitable property and consequently rent it over the long term to provide income. 'Suitable' property would be that which needs remedial work and as such is priced accordingly. The current property market appears to be subdued somewhat.

Existing pension funds appear to be poor value?

However - 'gut feelings' do not always make good financial sense - so again - please keep the information flowing

dunstonh

'Suitable' property would be that which needs remedial work and as such is priced accordingly.

Which probably means a SIPP is no good for you. If things go as expected, every single bit of work that needs to be done will need trustee permission and almost certainly use builders etc that are approved by them.

Existing pension funds appear to be poor value?

Thousands of funds out there and most are doing very nicely. Indeed, the last 2 years have seen the UK stockmarket funds outperform property. I have two funds in my own portfolio which have exceeded 60% year to date. Many are over 20%.

Look back at the cycle over 20 years and you will see property price crashes at different times to stockmarket crashes. The silly money goes into one as it gets near the top, then it crashes, they pull out with a loss and go into the other as that has been doing well but then that crashes and they revert back to the other again. Each time buying high and selling low.

The last 5 years have been great for buying investment funds, with the exception of the US. Long term and you could say that there is some overdue growth there.

whiteflag_3

The objective of the post is to glean unbiased information, on which an informed decision may be made.

The object of the question was to glean more info on your thoughts to then give further info etc, however.......

Nick_C_4

Technically this is wrong as well.

The Lifetime Allowance (£1.5m in 2006) is the maximum you can take out without incurring additional tax charges. Anything over the maximum can be taken out but is effectively taxed at 55%.

Yes, that's correct....I was addressing the contribution / proceeds distinction and failed to be precise.

It's also worth mentioning that anyone in danger of falling foul of the allowance due to their current pension holdings can apply for an enhanced allowance, but there is a deadline for doing so.