Pension stuff, how's it all looking ? HAve you prepared ?

[Mr. Dazzle]

You wouldn't pay tax at 40% on stock/share earnings though, it'd be CGT?

Based on recent performance I think you'd largely be better off investing in foreign companies and paying the tax!

Maybe that's his plan. Everyone goes "sod off Jeremy, that's not worth much, I'm gonna invest in foreign firms and make more!" and then he gets a wedge of CGT

[Count Steer]

You wouldn't pay tax at 40% on stock/share earnings though, it'd be CGT?

Based on recent performance I think you'd largely be better off investing in foreign companies and paying the tax!

Yeah, soz, that was a bit sloppy of me. I was making a basic comparison with tax on share dividends (and that's not 40% either, it's 34% at the higher rate). It's early and I haven't had my third cuppa yet.

[Count Steer]

Apparently there are details to iron out but it looks like you can choose the fund, as long as it’s UK based. So I don’t know what’s not to like, as you say you get to bung another five grand into a tax free wrapper.

I was hoping that it’s been misrepresented and it’s actually just a blanket increase of the ISA limit, but atm it appears not.

The consultation period runs until June 6th, so it’s anyone’s guess. It’ll probably end up like the old PEP because that’s the easiest route for them to take.

Yup. I just tried to read the consultation document. I guess we have to wait and see what the consultation comes up with. I'll even be interested to see how they define 'UK company' tbh.
I'll have another read of the doc later...on a bigger screen.

[Mr. Dazzle]

I'm just assuming they mean a PLC listed in the UK?

[Mr. Dazzle]

Does seem a bit circularly perverse to pay tax on interest the government paid you

[Count Steer]

I'm just assuming they mean a PLC listed in the UK?

I imagine that's what it will end up as...which is very unimaginative to have multinationals like of Shell, HSBC, Unilever etc included when rapid growth/jobs will probably come from smaller outfits. Maybe there'll be 'UK Incubator Funds' ie funds available that invest beyond the FTSE 250?

Oh well, we'll have to wait and see I suppose.

[Noggin]

I really need to try and get access to the info online for my pension. i've probably missed the chance to pay the bits I've missed and set up paying in until retirement age. But I need to try. Unfortunately they have my DOB incorrect (despite me sending them all the relevant details years ago to correct this) so it's been impossible to get into the system and i've not been in the uk long enough to make an appointment in person to sort it out

Aside from that, I need to find out how long I have to work in France to get a pension here too - I have a suspicion that I won't manage to work long enough, but if I know, then maybe I can.

Sadly, I had a very short sighted view on retirement - mostly cos I never expected to live very long. Always suffered from depression and figured that if an accident didn't get me, I would - then I realised how bad it was on the side of the people left behind and won't go that route. So now I'm left with a genetic leaning towards long life and no plans

But, I'm finally getting into a good place income wise (should have a permanent contract for next winter as so that changes everything here for planning and ability to get loans/mortgages etc). So, hopefully things will work out ok. Might need a lot of luck though!!

[weeksy]

This was a fairly decent thread.... if it stops being that, it'll be deleted fully.

Lets keep it on topic hey

(i've been out for a MTB ride and then cleaned up)

[Cousin Jack]

I have been lucky (gold plated final salary scheme), but the biggest problem is bloody governments, always tinkering with rules on a 5 year timescale, when proper pension planning needs stability on a 30+ year timescale.

Advice? Don't ever trust the government, and don't put all your eggs in one basket.

[weeksy]

I still need to look for an IFA when we get closer to 2026 so i can fully decide on what i do with my pot and what i don't do with it in terms of the 25% allowance. As someone said to me, "you only get one chance to take money at no tax" (it's not strictly true as we know, but the point kinda is)

I'm not going to decide until i see where life is taking us by then, we've discussed moving house and it'd likely be around that sort of time too, so if we could downsize in price (likely) and get the mortgage paid off with some of the money, a nice new van for me and possibly a couple of weeks away, then i'd take that.
All of that though depends on what the boy is doing in terms of racing/schooling etc.

My pension itself is currently with Scottish Widows and in the last 6 months it's been completely insane in terms of increases, i'm more than happy with how it's doing. So that'll be left where it is at the moment, it's more about whether i pull out the 25% (or a %age of it) and what i do or don't spend it on.

[Mr. Dazzle]

You have to spend the 25% on anything. You can just save it somewhere else

EDIT: don't have to

[weeksy]

You have to spend the 25% on anything. You can just save it somewhere else

Of course yes. But I was planning on enjoying it too

[Count Steer]

You have to spend the 25% on anything. You can just save it somewhere else

I think there's a 'don't' missing.

The other thing is, you don't have to pull the 25% straight away. You could leave it and hope it's 25% of a bigger number. (Assuming they don't stop allowing it, which I think is low risk. More likely they'll push the age you can take it up again in a few years time).

[Sunny]

Good timing for me as I'm at the start of giving this some serious thought now.

I'm 44, and currently working full time on a decent salary, but would really like to not be working forever - at least, not doing what I do currently.

I've been fixated on paying off the mortgage, and am about a year away from achieving that (thanks also in part to a donation from the bank of mum and dad, to be completely transparent). So now it's time to think about what's next.

Aside from the mortgage thing, I'm a bit spend-happy. So I need to reign that in for starters

A couple of unforeseen events over the last couple of years wiped out my savings, so I've restarted on that over the last couple of months. I'm one of those people who find it way easier to save when there's some money already there, so I've shoved £2K in a Zopa instant access cash ISA at 5.08% to get me started.

As a higher tax payer though, once I've got a bit of a safety net built back up, it feels sensible to start stashing chunks tax-free into my work pension, so I'll be looking at that as soon as I start at my new place (in May). I'm thinking maybe £30K a year might be sensible.

Pension-wise I have a fair few, but my current pots stand at around £160K.
Plus I have a couple of years of a railway final salary scheme that should help.

I also need to think about t'other half, who has minimal pension stuff in existence, and no current pension plan. I've been planning our future based on mine, but if I snuff it before him, he's going to need something to keep him going too.

No investments currently either.

[Cousin Jack]

Does seem a bit circularly perverse to pay tax on interest the government paid you

That's Governments for you. People get paid benefits and have to pay tax on them.

IMO it is plain bloody stupid, and inefficient as hell, but no-one is going to give us a sensible taxation system, it is always add more rules on top of the old.

[Dodgy69]

I've nibbled away at some of my 25% on a new bathroom, internal doors, etc, basically, sensible stuff that she's happy about. Also, there's no more space in the garage. ☹

[Dodgy69]

From 6th April 2028, you'll need to be 57 to access your pension. This could piss off quite a few I reckon. I wouldn't bank on getting a state pension in years to come, more will die before they reach state pension age, which will probably be 70 odd years old.

I could be wrong though, I was once.


Ps...what was wrong with the other pension thread.

[Sunny]

I'm at the start of giving this some serious thought now.

I'm 44, and currently working full time on a decent salary, but would really like to not be working forever - at least, not doing what I do currently.

I've been fixated on paying off the mortgage, and am about a year away from achieving that (thanks also in part to a donation from the bank of mum and dad, to be completely transparent). So now it's time to think about what's next.

Aside from the mortgage thing, I'm a bit spend-happy. So I need to reign that in for starters

A couple of unforeseen events over the last couple of years wiped out my savings, so I've restarted on that over the last couple of months. I'm one of those people who find it way easier to save when there's some money already there, so I've shoved £2K in a Zopa instant access cash ISA at 5.08% to get me started.

As a higher tax payer though, once I've got a bit of a safety net built back up, it feels sensible to start stashing chunks tax-free into my work pension, so I'll be looking at that as soon as I start at my new place (in May). I'm thinking maybe £30K a year might be sensible.

Pension-wise I have a fair few, but my current pots stand at around £160K.
Plus I have a couple of years of a railway final salary scheme that should help.

I also need to think about t'other half, who has minimal pension stuff in existence, and no current pension plan. I've been planning our future based on mine, but if I snuff it before him, he's going to need something to keep him going too.

Oh, and I have no shares/investments, though I should have an equity option in my new place of work towards the end of the year...

[Count Steer]

Apparently there are details to iron out but it looks like you can choose the fund, as long as it’s UK based. So I don’t know what’s not to like, as you say you get to bung another five grand into a tax free wrapper.

I was hoping that it’s been misrepresented and it’s actually just a blanket increase of the ISA limit, but atm it appears not.

The consultation period runs until June 6th, so it’s anyone’s guess. It’ll probably end up like the old PEP because that’s the easiest route for them to take.

Yup. I just tried to read the consultation document. I guess we have to wait and see what the consultation comes up with. I'll even be interested to see how they define 'UK company' tbh.
I'll have another read of the doc later...on a bigger screen.

I had a dig into the doc. Yeah, it'll probably end up like the PEP. They clearly want to include stuff like companies on AIMs but are steering clear of where the majority of a company trade is, which makes sense.

Watch this space I guess.

[JackyJoll]

They should have raised the ISA limit across the board and had done with it..

Failure to raise ISA limits during or after a period of inflation looks like another example of a tax rise through fiscal drag.