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MSE News: Pension system 'too complex'
Comments
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gadgetmind wrote: »Sadly, that 40% is subject to lifetime and annual caps, there are threats to the 25% lump sum, and the age related allowance can mean that pension income is taxed at 30%.
But yes, pensions tend to have tax advantages (and enjoy employer contributions and NI boost) whereas ISA are more flexible.
I have both and would part with neither!
The lifetime allowance is £1.8M and not directly connected to the 40% rebate, except that to reach the giddy heights of a £1.8M pension pot, you'd have to be a high earner and therefore a high rate taxpayer. I doubt that most higher rate taxpayers will get anywhere close to the £1.8M really, and if they did they would earn enough to afford accountants to give them pensions advice and help them shield their money from tax.
The 25% is always being discussed, just as the removal of the 40% tax rebate. I think they will still be discussing this when I retire in 25 years time.
I'm afraid I don't understand your point about the age related allowance, but this is going anyway and everyone will just have the £8k tax free allowance.0 -
Too right Reaper. I am in the same boat with two stakeholder pension plans with the same provider. There was no chance to get my new employer to pay into my existing personal pension plan with the same provider that I already had. I am now ready to retire and want some basic information about what to do with both of them and finding it incredibly difficult to get the stakeholder pension company to provide any basic information on both plans and my options on combining them. They seem to want me to go to a fee paying financial advisor to get basic information from them about my two plans which they hold. The private pension industry and system of operating it in this country is abysmal to say the least.0
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They seem to want me to go to a fee paying financial advisor to get basic information from them about my two plans which they hold.
Basic backside covering on their behalf.
Maybe consider starting a new thread asking about your options. If you're thinking about taking an annuity, then an IFA could well be your best option.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Dorotheen, what basic information were you requesting? If you were asking about buying annuities they may well not have been permitted to answer by the permissions they hold. I'm surprised that they couldn't tell you if it was or wasn't possible to combine the money in the two plans.
If you're planning to buy an annuity it'll be best to consult an IFA who will be paid on commission basis. The commission would be charged and kept by the annuity company if you didn't use an IFA so there's nothing to lose by using one for an annuity purchase.0 -
That will be going soon.
It does seem that it will be slowly eroded but there is no guarantee that something similar won't pop up in its place, which is why I'm carefully considering the various income streams (SP, interest, dividends, gains, etc.) for my wife.
I'm going to be a basket-case tax wise in retirement so can't really benefit from anything other than capital gains.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I then use S&S ISAs, unwrapped investments (which are bed&ISAd each year) plus index linked certificates and ordinary cash accounts.
I have a wife for this.
I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
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Better hang onto her tightly then.
I've got the pensions, she's got the unwrapped, and we've both got the ISAs. Seems fair!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
An I right in thinking that my SIPP pension pot is outside of my estate if still intact and I am not yet 75 years old, were I to pop my clogs?0
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John_Pierpoint wrote: »An I right in thinking that my SIPP pension pot is outside of my estate if still intact and I am not yet 75 years old, were I to pop my clogs?
I believe the phrase is "uncrystalised", which means not used for drawdown/annuity and not even the lump sum taken, then yes, it goes to who you nominate without tax.
After any of it is crystalised, this can either be used to provide a pension for a dependent or be inherited after a punitive 55% tax has been imposed.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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