self emplyed pensions options?

dunstonh

sneekymum wrote:

Then they could tax it at 40%

Then it would be treated the same as normal savings. Better to get 60% of something, than nothing. Also, those below the threshold wouldn't pay anything. Plus, no liability between husband and wife.

EdInvestor

dunstonh wrote:

It could be reversed if the Govt increase their borrowing by issuing long term gilts.

Personally, I hope it doesn't improve and forces the Govt to introduce a lifetime savings account where the capital cannot be touched but you get freedom of movement to get the best return and your estate retains the capital on death.

Definitely seems to be moving that way - the combo of Sipps and the new drawdown rules add up to that almost - though they haven't quite got to the last bit(yet) for those over 75

deemy2004

dunstonh wrote:

No.

That is one example of a PPP being cheaper, they can also be more expensive. The popular Skandia PPP is great for those with more than 75k in their fund and 19 years or more to go. If you only have 10k, you would find a stakeholder cheaper.
.

Is this the same skandia thats overcharged fees on its pension policy holders for the last 14 years ?

If the Sunday telegraph had not broken the story then the customers would probably never have been told about it !

dunstonh

If the Sunday telegraph had not broken the story then the customers would probably never have been told about it !

Skandia first reported the problem to the FSA in March 2004. The Telegraph first reported it on 17/1/05 after being made aware that Skandia was in talks with the FSA over it. So you can hardly thank the Telegraph for anything in this issue. Indeed, you could argue that they took 9 months to find this out.

It would be daft to rule out a contract due to a historical charging error which is being resolved at no cost to the policyholder. I also understand that the errors were not on the current PP5 or PP6 contracts that are offered. Most cases, the error is under £100 and that doesn't alter the facts that the contract can be cheaper than a stakeholder pension under the correct circumstances.

If you were to rule out a fianncial services company on the basis of an error made historically, you would not find one out there to place business with.