ING To Increase

lisyloo

You pay income tax at the rate relative to the income.

Yes, I am familiar with the banding system, but I can't see that this will benefit most people.
What I mean is that very few people will be lucky enough to have pensions giving them 40% tax (I wish!) and also very few will be able to live on anything below the lower limit for 22% tax, so the vast majority will still have to drawdown an amount in the 22% bracket aren't they?

The main advantages to pensions that I see are :-

the lump sum that you get tax free
plus the opportunity for higher rate tax payers to get 40% relief but only pay 22% on the income

Am I along the right lines?

home_alone

Isyloo, I was not geting the 2 areas mixed up I have no concerns over long term care my kids tell that the home will look after me ok, its all about inheritance , scaling down my house (its too big anyway) and giving the kids everything I dont require hopefully I will live longer than 7 years so they will not have to pay back, I am not sure about you but there is something about giving the goverment loads of cash which they can they give to needy causes like asylum seekers and people that dont want to work, its just sticks in my throat, you know what I mean.

gary

lisyloo

I know exactly what you mean and you are very wise to plan in advance.
Make sure you enjoy some of it yourself as well though

I don't intend to be the richest woman in the graveyard. I'm gonna spend what I've got on travelling etc.
I hope to be rich in experience and memories not cash.

home_alone

lisyloo, I am spending just bought a new MB SLK350 2 weeks ago the kids (son & daughter) are already fighting over who will get it when I die, I hope to have another 30 years yet but you gotta laugh. The gift we all want is knowing near enough how long we do have left, then spend spend spend (or borrow) it will be a hell of a last night party, you could meet upwith everyone else that is scheduled to depart this world the next day, the saying live for today because tomorrow may never come, spot on.

gary - nice talking to you

ED

ING's 0.15% rate rise is now reflected ("5% AER") in their advert atop MoneyFacts webpage for savings rates.

Glad ING shook up the market, so that now we have even more competitive rates offered by other online accounts :

5.65% AER/gross : Cahoot
5.40% gross : Birmingham Midshires
+ 5.37% gross (5.50% AER) for up to £2,500 : Alliance & Leicester cheque a/c
5.30% gross till next March : Leeds & Holbeck Bdg Soc
5.20% gross for £250+ : Yorkshire Bdg Soc
5.10% gross for up to £20,000 : Norwich & Peterborough Bdg Soc
5.10% gross : Alliance & Leicester (But 24 hrs to transfer to A&L cheque a/c)

System

Thanks for doing that Ed, i have been meaning to compare rates for days!!!