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POLL. How will you use new pension freedoms?
Comments
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But gadget, will there be a plethora of DD pensions availabe for those iwth the average pot of say 20k?
Yes.
Rip it all out in two years before SP kicks in, so get the lot tax free, and bang it into an ISA,.
20% tax saving in, everything tax free out. what's not to like?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 -
But with the introduction of auto enrolment, I think we'll see a lot of people who normally wouldn't have saved for retirement. Then when they hit retirement they'll have unlimited access to their pension pot, and well, blow it within a few years of hitting 55/57 and the whole purpose of auto enrolment becomes nullified because we've got a generation of people who've blown their income on debts/holidays/home improvements etc. and become reliant on the state.0
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gadgetmind wrote: »Yes.
Rip it all out in two years before SP kicks in, so get the lot tax free, and bang it into an ISA,.
20% tax saving in, everything tax free out. what's not to like?
well, since you asked ... the fact that younger earners are already taxed much more heavily than older pensioners (when both have the same income). and these latest changes to pensions are increasing that disparity even further.
(yes, i know that wasn't the real topic - that was practical advice for ppl taking pensions
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If people would blow their money in retirement, what makes you think they won't opt out of autoenrolment.But with the introduction of auto enrolment.............generation of people who've blown their income on debts/holidays/home improvements etc. and become reliant on the state.
Anyway, less than 6% in the poll indicated that is what they will do.
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Anyway, less than 6% in the poll indicated that is what they will do.
Yes, and this despite 96% of newspaper articles ranting about how everyone would go for this 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 -
The immediate increase in the GAD rate multiple to 150%, and the promised total relaxation, means that I would be able to draw the full rental income from my property SIPP if I wanted.
It's always seemed unreasonable that the government imposed a drawdown limit without any reference to the actual income earned by a particular pension pot.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
The government actually seemed to assume that everyone held nothing but 15 year gilts!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 -
Quite so, and 96% of the usual suspects have no proposals about how pensions in the future should be organised to provide for funds in retirement.gadgetmind wrote: »Yes, and this despite 96% of newspaper articles ranting about how everyone would go for this option.
One thing is sure, private pensions won't work.
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One thing is sure, private pensions won't work.
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They certainly can work but people seem more interested in what papers+mates say than reality.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 -
Private pensions (p.p.) can work:-
If the investments pay off
If the government doesn't change the rules
If you end up with at least the same out as you put in
If it provides for your needs in retirement
If.......
The one guarantee with p.p. is that there is no guarantee. Why everybody quietly accepts, or argues we should accept, the end of defined benefit/final salary schemes is madness.
But if that is what is to happen, then what should we argue they are replaced with, there was a level of guaranteed benefit with such schemes that is not offered with private pensions. Who in their right mind can say the future looks good with p.p.
What options do we suggest, here on MSE, to those who will retire decades from now
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