why are pensions reccomended

kidmugsy

Chrysalis wrote: »

plus at pension age the state will provide something (even if they claim they wont in 30 years they always will).

At last, frankness. It comes down to the usual "in old age I'll just freeload on the taxpayers".

agarnett

kidmugsy wrote: »

At last, frankness. It comes down to the usual "in old age I'll just freeload on the taxpayers".

Which is exactly what high rate taxpayers have been doing lately by recycling pension drawdowns and making new contributions with them while they continue to coin it with high salaries and bonuses they never earned but will never admit with any frankness. They have been claiming astonishing amounts as tax relief and avoiding tax by the shedload, and been up to all the tricks and rinkydinks that only wealthy people with time on their hands or paid servants can afford to play at.

And then we even see them complaining that intended £1M lifetime allowance saved wityh the benefit of tax relief in a pension isn't the sign of any real wealth.

This particular board is often very short on frankness about fairness at the free as a bird top end versus the likes of our hapless locked in Chrysalis.

Orwell

Get a fake job in the public sector. Pretend to work until retirement (no-one can tell the difference) or pretend to be ill and get early retirement.

A nature play ranger trainer sounds like a good one, or a five-a-day adviser, or an community outreach consultant - you name it, the council will make it up for you.

jem16

moneysaver21 wrote: »

I opened a SIPP and put in £40k. The government are adding another £30k in tax relief. I know I won't see if for around 30 years, but its the easiest £30k I will ever make!

So you are receiving 75% tax relief? Perhaps you can explain how.

Kendall80

The big selling point for me regarding pensions is the extra money going in.


Basically, my SIPP investments are essentially 20% up from the outset and my works pension contribution of 4.4% is enhanced with 6.6% from my employer.


That's free money - i'll take it

chucknorris

Chrysalis wrote: »

plus at pension age the state will provide something (even if they claim they wont in 30 years they always will).

'Provide something' doesn't exactly indicate a comfortable retirement though, does it?

gadgetmind

agarnett wrote: »

if you believe those on above average earnings are the most valuable and productive members of society

Yes, how dare they demand more money just because they paid attention at school, acquired valuable skills (rather than huge chips on their shoulders), and are actually prepared to apply themselves to create the kind of products that make Britain great. Perhaps, they should have just drifted through life, not bothered with education, and then got a dead end job and/or rely on government handouts?

Sorry, but hard work and smarts are rewarded. You may not like this, but it's the way the world works.

atush

And thank god it does.

moneysaver21

jem16 wrote: »

So you are receiving 75% tax relief? Perhaps you can explain how.

No, 45%...

jem16

moneysaver21 wrote: »

No, 45%...

Ah right - I'm with you now but you're not quite there.

If you made a £40k contribution to your SIPP you would have £10k added to it by the pension provider. So that would be a gross £50k contribution. As a 45% taxpayer you would be entitled to claim another 25% from HMRC so £12,500. This, however, never reaches your pension as it's done as a rebate or by paying less tax.

To get 45% on all of your contribution this tax year you would need to be earning around £200k.