Cash pension in?

jem16

averageguy11 wrote: »

I think we can c where people bias lays....

And where would that be?

I have absolutely no conncection with the financial services so why would I be biased? I am what you describe as your average person in the street.

Jem...average person in the street has a far better chance of understanding isa's as againt a pension....still least u admit they dont understand pensions.

S&S ISAs work in exactly the same way as as pensions.

However you seem to be referring to cash ISAs - totally unsuitable for long term retirement planning.

Gem...your point 'doest make the pension wrong' dont think i actually said tht...

I don't remember saying you did.

.u say they should educate themselves if they dont understand it...wel the same could b said of isas..

Exactly my point. However as can be clearly seen on the ISA board many don't understand the simple rules of a cash ISA never mind a S&S ISA. A cash ISA won't get them very far for retirement saving.

.o and i hav several elderly clients who have cash isas...they seem to understand them very well.

What has age got to do with understanding ISAs?

So where does your bias lie when you talk about "elderly clients"?

averageguy11

Seems u missed the reasoning of the points made..probably with yur blinkered thinking..i think i will rest on my points made.

jem16

averageguy11 wrote: »

Seems u missed the reasoning of the points made..probably with yur blinkered thinking..i think i will rest on my points made.

So unless we agree with you we are blinkered? :rotfl: :rotfl:

The point being made is that you use the most suitable wrapper, or indeed non-wrapper, for what you want to achieve.

averageguy11

Erm blinkered as in you seem to have misinterpreted them....and the point was ..going back to near the beginning of the thread ..why would he want isa instead of pension..i had merely thrown up a couple of reasons why he would want an isa...but hey i was merely pontificating

jem16

averageguy11 wrote: »

Erm blinkered as in you seem to have misinterpreted them....

I haven't misinterpreted anything. I have disagreed with one of your reasons for choosing an ISA over a pension.

Flexibility I have agreed with if that's what you want.

Transparency - you say that an ISA is more transparent than a pension. Only a cash ISA could be considered more transparent and you would not use that for retirement planning.

There are plenty of reasons why a S&S ISA would be better than a pension and vice-versa but transparency is not one of them.

EdInvestor

Complexity is a better word than transparency in this case. There's no doubt that the rules and regs attaching to a pension are wildly more complicated than those attaching to a stocks and shares ISA.

dunstonh

Complexity is certainly increased with pensions. Mainly due to all the different types. However, the consumer doesnt need to know the ins and outs of it. The key facts are sufficient. Tax relief going in, tax free growth and on maturity 25% available as tax free cash with the rest buying an income. You dont need to know any more unless you want to start to transact more complicated areas to take advantage of the tax rules.

ISAs still have complexity with retirement provision. You would realisitically have to switch your ISA holdings to a high yield portfolio. However, there are certain investments that you may find in a high yield portfolio that you cannot have in an ISA but you can in a pension or unwrapped level. Even if you ignore that, you still have to have the knowledge to be able to build the portfolio. If you have the knowledge and ability then you are certainly clever enough to understand the differences in the UK tax wrappers if you want to look into it.

averageguy11

i'd agree with tht and yes complexity wud hav been a btr word to use....stil its gd to debate