£100,000 in Premium Bonds

MrRee_2

Yorksport wrote: »

They have become irrelevant to most people as the prize lists are dominated by those holding large amounts.

I would agree with you there.

Anyone holding less than £30k is really not in the game.

For a higher rate tax payer, having the winnings tax free is an appeal.

Pensions are fine if you don't need the money, as when it's gone into a pension, it's gone ........

For a basic rate taxpayer, with less than £30,000 to gamble, Premium Bonds are not the best place - to be part of a portfolio they aren't that bad a gamble at all .... even at £100,000 a couple!

MFW_ASAP

MrRee wrote: »

Pensions are fine if you don't need the money, as when it's gone into a pension, it's gone ........

Clearly someone hasn't been watching the Budget!!

This is no longer the case, you can withdraw 100% of your pension cash. You don't need an annuity anymore.

MrRee_2

MFW_ASAP wrote: »

Good luck to you, whatever you decide. I have to say that a combination of a house price crash reducing the price of our dream house, sustained super low interest rates allowing us to pay for it and now a gilt edged and tax efficient way of paying it all off has meant that the financial crisis and its repercussions have been amazing for my personal finances. It's just wonderful.

Careful ....... you will get the green eyed posters coming along soon telling you that you are trolling!! :rotfl:

Simply because you have made a success of things.

MFW_ASAP

MrRee wrote: »

Careful ....... you will get the green eyed posters coming along soon telling you that you are trolling!! :rotfl:

Simply because you have made a success of things.

I didn't even mention how low returns on cash savings and QE have massively increased the value of my funds and shares.

MrRee_2

MFW_ASAP wrote: »

Clearly someone hasn't been watching the Budget!!

This is no longer the case, you can withdraw 100% of your pension cash. You don't need an annuity anymore.

I thought it depends upon your age - only can withdraw at 55 and above? So, if you are younger the money is gone.

Also, if you have a Final Salary Pension it's different .... isn't it?

MrRee_2

MFW_ASAP wrote: »

I didn't even mention how low returns on cash savings and QE have massively increased the value of my funds and shares.

Stop, stop now ...... I'm warning you - there will be calls for you to be banned!!!

The green eyed posters simply cannot believe that anyone is better off than themselves, they believe that it's all made up ..... which is why they will never realise their potential :rotfl:

grizzly1911

MrRee wrote: »

I thought it depends upon your age - only can withdraw at 55 and above? So, if you are younger the money is gone.

Also, if you have a Final Salary Pension it's different .... isn't it?

55 rising to 57. If you are younger it just isn't available.

Final salary (defined benefit) is not included.

Money withdrawn from pension is liable to tax at your personal income tax rates.

Presumably money within the pension can be used, invested, within it to provide an income rather than switched into an annuity, like drawdown or just withdrawn?

Average pension pot is just £17700 apparently (BBC).


Pension reform: Ten hidden consequences


http://www.bbc.co.uk/news/business-26666103

wotsthat

grizzly1911 wrote: »

Average pension pot is just £17700 apparently (BBC).


Pension reform: Ten hidden consequences


http://www.bbc.co.uk/news/business-26666103

I think it's bizarre that, on one hand, the BBC are referencing the average pot being £17k, and on the other hand highlighting the hidden consequences of pension reform with number one showing a photo of a super yacht with two deck chairs on a deck.

I know pensioners can be thrifty but come on.

MrRee_2

I assume that you mean £17,700 annual pension ... and not the whole pot?

wotsthat

MrRee wrote: »

I assume that you mean £17,700 annual pension ... and not the whole pot?

No.

The average pension pot according to the FCA is £17.7k. The ABI reckon it's about £36k.

Talk of pensioners blowing the lot on a Lambo is attention seeking nonsense.