Phased Retirement Plan

dunstonh

Why are pensions so complicated, does the Govt not trust us to be sensible with our funds and make our own simple decisions or am I over simplying the whole thing.

Pensions themselves are actually very simple to understand. However, phased retirement is a niche option which is only used by a minority. To prevent abuse of the tax rules, the HMRC and Govt put in certain rules.

I dont service my car because I think that is complicated. Yet the mechanics find it simple because it's what they do.

If we wanted simple engines, we would be driving our cars like the flintstones. Simple but not very useful. Same applies to pensions.

EdInvestor

Cynics might suggest that one reason why pensions and financial products are so complicated in general is to bamboozle people so it is easier to rip them off.

dunstonh

They would have to be very sad to think that.