Which is the better option?

gt568
Forumite Posts: 2,435
Forumite


So as things stand I am currently 45.....
Would like to stop work 60ish...
I recieve a pension of 10k, which in 10 years will jump to about 15k....
Currently earning 48k on top of that....
I started paying into the new company pension pot this year, I contribute 6%, the company 8% thru a Smart scheme.....
My question is would I be better off putting AVCs into the pension, or I have an option of buying shares monthly which I can sell tax free if I keep them for 5 years....
I can't work out what is the better option really, any advice?
:silenced: Down with the signature fascists!!

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..both??....................................................
.."It's everybody's fault but mine...."0 -
Can't really afford both....?
:silenced: Down with the signature fascists!!0 -
gt568 said:So as things stand I am currently 45.....Would like to stop work 60ish...I recieve a pension of 10k, which in 10 years will jump to about 15k....Currently earning 48k on top of that....I started paying into the new company pension pot this year, I contribute 6%, the company 8% thru a Smart scheme.....My question is would I be better off putting AVCs into the pension, or I have an option of buying shares monthly which I can sell tax free if I keep them for 5 years....I can't work out what is the better option really, any advice?Does the share purchase scheme offer any other benefits or incentives besides being tax free if kept for 5 years? Often the employer will match your purchase so it's buy one, get one free, giving you an immediate 50% gain, plus all tax free. If so, these are pretty much a no brainer unless you think the company is going down the pan and the shares are likely to halve in value in 5 years.If there are no further incentives, then it's a closer call. The shares are tax free whereas pension contributions are effectively tax deferred (no tax now, and 25% tax free on withdrawal but the other 75% will be taxed), but the pension is likely a well diversified investment (e.g, index tracker, etc) whereas company shares give you massive concentration risk in one company. You know your company - you decide which is likely to give you a better return on investment.Or you can hedge your bets, and do both?1
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45 is a bit young to be receiving a pension ?1
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Albermarle said:45 is a bit young to be receiving a pension ?
Not really, earned it thanks. All part of my T&Cs.
:silenced: Down with the signature fascists!!0 -
NedS said:gt568 said:So as things stand I am currently 45.....Would like to stop work 60ish...I recieve a pension of 10k, which in 10 years will jump to about 15k....Currently earning 48k on top of that....I started paying into the new company pension pot this year, I contribute 6%, the company 8% thru a Smart scheme.....My question is would I be better off putting AVCs into the pension, or I have an option of buying shares monthly which I can sell tax free if I keep them for 5 years....I can't work out what is the better option really, any advice?Does the share purchase scheme offer any other benefits or incentives besides being tax free if kept for 5 years? Often the employer will match your purchase so it's buy one, get one free, giving you an immediate 50% gain, plus all tax free. If so, these are pretty much a no brainer unless you think the company is going down the pan and the shares are likely to halve in value in 5 years.If there are no further incentives, then it's a closer call. The shares are tax free whereas pension contributions are effectively tax deferred (no tax now, and 25% tax free on withdrawal but the other 75% will be taxed), but the pension is likely a well diversified investment (e.g, index tracker, etc) whereas company shares give you massive concentration risk in one company. You know your company - you decide which is likely to give you a better return on investment.Or you can hedge your bets, and do both?I don't think they do offer a buy one, get one etc, but I'll need to check.....Business is certainly good, but who knows what the future holds I guess.It's a tough call!:silenced: Down with the signature fascists!!0
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gt568 said:Albermarle said:45 is a bit young to be receiving a pension ?
Not really, earned it thanks. All part of my T&Cs.
Armed Forces pension, payable on completion of 22 years plus? It's what we signed up for. I was once told that I was 'very lucky' to have such a pension, and I replied that yes, I WAS very lucky - lucky to have completed my 22 years with my life, limbs and mind intact. Unlike so many others.
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Silvertabby said:gt568 said:Albermarle said:45 is a bit young to be receiving a pension ?
Not really, earned it thanks. All part of my T&Cs.
Armed Forces pension, payable on completion of 22 years plus? It's what we signed up for. I was once told that I was 'very lucky' to have such a pension, and I replied that yes, I WAS very lucky - lucky to have completed my 22 years with my life, limbs and mind intact. Unlike so many others.
29 years in the bank.....cher-ching.
:silenced: Down with the signature fascists!!1 -
Armed forces getting triggered yo0
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gt568 said:Silvertabby said:gt568 said:Albermarle said:45 is a bit young to be receiving a pension ?
Not really, earned it thanks. All part of my T&Cs.
Armed Forces pension, payable on completion of 22 years plus? It's what we signed up for. I was once told that I was 'very lucky' to have such a pension, and I replied that yes, I WAS very lucky - lucky to have completed my 22 years with my life, limbs and mind intact. Unlike so many others.
29 years in the bank.....cher-ching.0
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