The truth about pensions: it's not worth having one

tobiascurious

http://www.moneyweek.com/personal-finance/the-truth-about-pensions-its-not-worth-having-one-46619.aspx

"The truth about pensions: it's not worth having one

By Deputy Editor Tim Bennett Dec 18, 2009


Is it worth buying a pension? Probably not. But you should still save for your future. Tim Bennett and John Stepek explain the best ways to do it."

Has anyone read this article, is it worth me subscribing so as to read it ?!?!

Paul_Herring

is it worth me subscribing so as to read it

Probably not, unless you can be certain you can cancel before the 3 week free trial expires.

The title of the article (and the blurb) would appear to indicate that they're ignoring a few pluses of having a pension like the 25% tax free lump sum (assuming it's still there when it comes to your retirement,) the value of employer contributions, the fact that pensions won't count as savings if you're ever means tested...

cheerfulcat

Paul_Herring wrote: »

The title of the article (and the blurb) would appear to indicate that they're ignoring a few pluses of having a pension like the 25% tax free lump sum (assuming it's still there when it comes to your retirement,) the value of employer contributions, the fact that pensions won't count as savings if you're ever means tested...

Concluding paragraph in the article ( hard copy version, anyway, ) sums up thus - if you haven't the willpower to keep your mitts off accessible savings in an ISA, or if your employer is making contributions, then a pension is worth having. If you're using your own money and have some self control then ISAs + using the annual CGT exemption are the best choice, as this offers more flexibility.

Exception is made for the higher rate taxpayer in the article, especially a HR payer who will be a BR taxpayer in retirement. The 25% TFC does get a mention.

A balanced enough article I thought but it doesn't say anything new.

dunstonh

Sounds like a bit of copy of what is written on here whenever the ISA vs pension debate comes up. (i.e. the sticky at the top of the forum).

In fact, I would suspect that the sticky thread has more useful info in it than the article as often these articles have to make some wild statement to get them noticed.

EdInvestor

Paul_Herring wrote: »

... the fact that pensions won't count as savings if you're ever means tested...

Another alleged plus point often mentioned is that pension money can't touched in bankruptcy.Supposedly this is a plus, but to some people it might be quite a minus point that savings couldn't be accessed at all if bankruptcy loomed.