My view on Pensions

atush

fairleads wrote: »

Because financial independence was more value to me than 20% taxrelief.

what is the difference in independence between an ISa and a pension? Or even an unwrapped broker acct?

Triumph13

atush wrote: »

what is the difference in independence between an ISa and a pension? Or even an unwrapped broker acct?

I'm guessing that Fairleads retired very early indeed. That's the one scenario where pensions don't really make sense. If you plan to retire before say 40 then building a fund to bridge the gap to pension access age plus another in a pension for after that age is likely to more expensive than building a single sustainable fund outside the pension in the first place.
That is a very specific set of circumstances though, against the OPs sweeping (and plain wrong) statements.

atush

But even someone retiring in their 40s should use at least any employers pension, then the rest in other accts incl S&Sisas.

Throwing away free money is pretty much nonsense. And I refuse to believe anyone who didnt win t he lottery and is smart enough and earns enough (ie HRTaxpayer) to retire at 40 cant understand the wonders of TR.

RuleTheWorld

why would a lottery winner not use a pension to remove the tax on their savings?

bigadaj

RuleTheWorld wrote: »

why would a lottery winner not use a pension to remove the tax on their savings?

Because of the limitation on salary or earnings, assuming it's not a football player winning the lottery.

BananaRepublic

Pensions were a lot less appealing to many people before the recent changes. If your employer did not pay in for you, you would be paying in yourself, and yes you got a tax refund, but you also got lots of strings attached, such as having to purchase an annuity, and not being allowed to touch it until retirement age. Nowadays the pension regulations have considerable freedom, and not taking advantage of them is foolish for most people. Even if you retire at 55, a pension can be taken, making use of that tax relief.

Anyway, I think the OP is a troll.

westv

This thread has become far more civilized since the OP stopped posting in it. :rotfl:

RickyB2000

westv wrote: »

This thread has become far more civilized since the OP stopped posting in it. :rotfl:

She is probably too busy filling her pension up after realising the error of her ways!

matty17r

BananaRepublic wrote: »

Pensions were a lot less appealing to many people before the recent changes. If your employer did not pay in for you, you would be paying in yourself, and yes you got a tax refund, but you also got lots of strings attached, such as having to purchase an annuity, and not being allowed to touch it until retirement age. Nowadays the pension regulations have considerable freedom, and not taking advantage of them is foolish for most people. Even if you retire at 55, a pension can be taken, making use of that tax relief.

Anyway, I think the OP is a troll.

Agree 100%.

[Deleted User]

westv wrote: »

This thread has become far more civilized since the OP stopped posting in it. :rotfl:

RickyB2000 wrote: »

She is probably too busy filling her pension up after realising the error of her ways!

Maybe she's retired :rotfl: