28th March 2006, 10:10 PM
Can I suggest that people get proper advice about penions and investments rather than listen to statements such as
"My own personal view is that private pensions are an incredible rip off".
Advice should come from a MIFA - a member of the Institute of Financial Advisors.
Pensions offer advantages over other forms of investments in the form of tax relief when the money is paid in and they are free of capital gains tax. Money taken out of the scheme is subsequently taxed.
It is a common myth that a private pension will pay out say 50% of the salary - a final salary scheme- only 16% of none government workers have one of these. A private pension scheme is more like a saving fund and an annual amount is paid out an "annuity". This is about 4% of the fund at the moment.
As Toby pointed out an independent source of advice is
http://www.thepensionservice.gov.uk
is very useful.
There is a pensions crisis in the UK at present and it is best to be informed about your future.
I would also look at ISAs tax free savings accounts.
Peter Wardle
(Whatever next! archaeologists discussing pensions and investments).
"My own personal view is that private pensions are an incredible rip off".
Advice should come from a MIFA - a member of the Institute of Financial Advisors.
Pensions offer advantages over other forms of investments in the form of tax relief when the money is paid in and they are free of capital gains tax. Money taken out of the scheme is subsequently taxed.
It is a common myth that a private pension will pay out say 50% of the salary - a final salary scheme- only 16% of none government workers have one of these. A private pension scheme is more like a saving fund and an annual amount is paid out an "annuity". This is about 4% of the fund at the moment.
As Toby pointed out an independent source of advice is
http://www.thepensionservice.gov.uk
is very useful.
There is a pensions crisis in the UK at present and it is best to be informed about your future.
I would also look at ISAs tax free savings accounts.
Peter Wardle
(Whatever next! archaeologists discussing pensions and investments).