2007-01-26 03:52:59 · 9 answers · asked by steven s 1 in Business & Finance ➔ Taxes ➔ United Kingdom
A pension plan is just a vehicle to enable you to save for your old age. Having a pension scheme, where the premiums are deducted from your pay or are paid by direct debit through your bank account, provides you with the discipline to save and eventually, it is not such a big deal. The great benefit of pension plans over other savings is that the government contributes 28% of your payment to the plan. This is the value of the tax relief that is paid directly to the plan.
It is a bit of a cliche but, the younger you are when you start the more you will get at the end of the day.
ISAs are also good for saving but they are dependant on current tax laws, which can change.
2007-01-26 20:50:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No.
I can't see any reason to pay into a pension scheme unless you have the right to claim the money when you want to.
If you're forced to buy an annuity, when you die they steal the capital. Is that fair? (And don't say it averages out over all annuitants, that's not the point)
Don't do it just for the tax relief, that's the tail wagging the dog.
Invest your own money in assets which will grow and over your lifetime it will give a better return than most pension schemes.
In 1957 my father bought a house for £1200, it's now worth over £350,000. Show me a pension scheme with that sort of return (those that haven't gone broke that is).
2007-01-29 10:16:26 · answer #2 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋
Any private pension is worth paying in to.
I was fortunate to pay into three - never knowing what the future would bring.
Because of illness in my family, it was a decision I was not to regret as I was forced to retire 15 years before my time - so those pensions were a great bonus for us.
2007-01-26 03:57:46 · answer #3 · answered by Anonymous · 2⤊ 0⤋
My uncle says that pensions are a scam, particularly if you are not in the highest tax bracket. You pay the money in when it is worth very little tax free, but when you take it out and it is worth more you get taxed on it. If your company helps you contribute, great or if you are on a high tax bracket now so that when you take the money out you will pay less tax on it fine.
If not, you are better off putting your money in an ISA every year and sitting on it until you retire. You pay tax on the money that goes in now when it isn't worth much, but in 30 years when the ISA is worth a lot you won't pay any tax on the money coming out.
In reality a mix of these two strategies is probably best.
2007-01-26 04:09:36 · answer #4 · answered by SmartBlonde 3 · 0⤊ 0⤋
I did for thirty 2 years and confident it actual has been worth it so a techniques. i could say it relies upon on someone's age whilst they start up. every person of their late 40's - do exactly an particularly solid mark downs plan extremely than a pension. every person who's presented a business enterprise pension - grab it! Who else is going to offer you loose funds?
2016-11-01 08:35:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋
i would say yes,as my mother in law as benefited after her recent loss of her husband,she gets 50% of his pension that he received.
2007-02-01 04:42:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Nothing in life is set in stone and for that reason alone (apart from the whole mess that the world has surrendered to) and for this reason I doubt many of us will be fortunate to see a ripe old age, therefore I have to conclude it's an absolute waste of money and a dead loss(no pun intended...)
2007-01-26 03:59:22 · answer #7 · answered by mark leshark 4 · 0⤊ 3⤋
well that is the thing some think that's a good thing and some think not it all depends on how much you are paying in for your
future me i would say no
2007-01-31 06:23:32 · answer #8 · answered by jayjay 1 · 0⤊ 0⤋
it should be as you get valuble UK tax allowances for your payments
2007-01-31 22:12:34 · answer #9 · answered by Professor 7 · 0⤊ 0⤋