taxing my pension

EdInvestor

More like 100k.

Err, perhaps you could tell us where a man of 65 could buy an index-linked pension of 10,660 a year for 100k.

dunstonh

Err, perhaps you could tell us where a man of 65 could buy an index-linked pension of 10,660 a year for 100k.

He cant, unless ill health.

In your post you referred to how valuable the Serps/S2P element was and that it would need £200k to match that. Well, the Serps bit is around £5k pa. not 10k as that included the state pension. I am assuming that you perhaps misread that the 10k was serps and not including his state pension?

To get a 10k pension, including basic state pension at 65 would need a pot of around £100k.

EdInvestor

This is what i said

The cause of the "trouble" is ozh's mighty state pension of 10,660, 205 quid a week.Just shows how valuable Serps/S2P can be, especially when you take into account that is an inflation-linked pension at full RPI.

It would cost you 200,000 quid in savings to buy that pension on the open market these days.

It would cost 200k to buy ozh's combined state pension - basic plus Serps.
100k for the basic, plus another 100k for the Serps, right?

dunstonh

It looks like we are just playing with english here. As the basic state pension accounts for nearly half (well, not even that actually), I was working on the assumption that you were pricing in the difference not the whole amount.

I would actually put the required pot at around £120k for £10,600 INCLUDING state pension and £240 EXCLUDING state pension.

djohn2002uk

To get back to the OP, I don't see why tax shouldn't be paid on pensions because the state pension comes from NI contributions and other contributary pensions are taken from deductions from salary, both of which might have been "hard earned money" but was never taxed at the time of the deductions.