Advice - best long term savings plan (in lieu of pension lump sum)

Luis

Hello,

I am wondering if anyone has got some much needed advice for me.

I am in the civil service's remodelled pension plan, which does have a lum sum facility - you pay £1 of your pension for every £12 taken as lump sum however.

I am looking for ways to either augment that lump sum or substitute for it, so as not to have to forego any of my pension (does that make sense?) - so has anyone got any advice on the best way to save for a nice lump sum?

Thanks,

Luis.

dunstonh

A stakeholder pension potentially, or an ISA. You should consider your decision not to take the lump sum from the occupational scheme as this may be the best option for you from a tax point of view.

i.e. take tax free lump sum, reduces your taxable income down. Place lump sum into maxi isas into say corporate bonds/gilts and take income from those tax free. You can also utilise tax relief on contributions making a contribution of £3600 but only writing the cheque out for £2808. If done in an immediate vesting pension, you can then take 25% of that back straight away and the remainder can pay an income which, although taxable, should be around 10% p.a. If you dont need the income straight away, you can let it grow tax free until you do.

Thats just one example.