I am thinking of starting a pension again,i have 15 years worth already.But i`m not sure if its better to do an ISA...the reason being this.
I have been told that when you are elegible to receive a state pension you are means tested,so really whats the point in saving if the goverment take off what you have saved via your personnel pension.This to me does not seem fair at all.
does this really happen? or is it just talk
2006-12-08 01:29:34 · 5 answers · asked by neil p 2 in Politics & Government ➔ Government
What does happen is that your pensions are taxed. You have to pay tax on anything beyond your personal allowance. So while it is true that the state pension is not means tested, the government will claw back the fruits of your hard saving via taxation!
Have you thought of applying for a pension forecast? http://www.thepensionservice.gov.uk/atoz/atozdetailed/rpforecast.asp
2006-12-08 01:57:41 · answer #1 · answered by Doethineb 7 · 0⤊ 0⤋
The only means test you get when you arrive at pensionable age is to find out if you need benefits or not. In other words, if your private pension plus the State Pen add up to above the poverty line, you do not get bens. If you fall below the povline, then you may be entitled to bens, again this depends upon how much you already have coming in.
I am single pensioner living in sin with my girlfriend. I have a company pen plus the State pen. My girlfriend, recently retired had lots of wonga. Between us were classified as having too much dosh to be allowed to claim bens. Naturally we get the heating allowance, which you are entitled to from age 60, male or fem.
Grab your share now and save save save. Don't be a poor pensioner, the bens never amount to what you could have if you invest now for a future which might be rather bleak.
Have a good one.
Merry Christmas & Happy New Year.
2006-12-09 03:32:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
dont do it whats the point of saving for you retirment only to find that you will not be intitled to benifits as you have to much money saved yet the ones that did not saved and had a good time get every thing enjoy it now before your to old to enjoy it
2006-12-08 18:01:59 · answer #3 · answered by mad keith 4 · 0⤊ 0⤋
The state pension is dependent on your contributions and is not means tested.
2006-12-08 09:33:17 · answer #4 · answered by Scotty 7 · 0⤊ 0⤋
In a Socialistic country like the UK, this often happens. The best things is keep your money in other place like Japan and say you do not have any asset in the UK.
2006-12-09 05:25:07 · answer #5 · answered by Beckham 2 · 0⤊ 0⤋