Solar PV versus pension

Sterlingtimes

If I invest £7,000 in an annuity aged 58, 10 year guarantee, 100% pension for spouse, RPI indexed and taxed at 40% on the increment, I earn £77 a year.


If I invest £7,000 in a pension drawdown, and take 4% income per year and I am taxed at 40% on the increment, I earn £168 per year.


My solar quote suggests income of £846 a year for 20 years RPI and tax free.


I think that the Minister may have been right when he suggested solar pv as a viable alternative to pensions.

Ectophile

My only caveat is that the system is unlikely to last 20 years without any maintenance. So allow for either an extended warranty contract, or occasional repair bills.