Pensions

[The Breen Machine]

Many on here bother with a private pension? I've got one with Aviva which I pay a fairly minimal amount in at the moment, but I've opted out of my workplace pension with a view to paying in the difference that'll now be in my salary. My thinking was that it would allow me greater control with the money going into one pot, and I can be flexible with the payments if need be.

 

[dixonsafc]

But you’ll miss out on the tax relief and employer contributions which is the one of the main points of having it?

 

[heroesof73]

Free money from your employer and tax free relief (oh err missus!) from the Govt whats not to like?

 

[zwartekat]

But you’ll miss out on the tax relief and employer contributions which is the one of the main points of having it?

Pretty much sums it up.

 

[The Breen Machine]

But you’ll miss out on the tax relief and employer contributions which is the one of the main points of having it?

I get tax relief on my private pension.

 

[Old Prestonian]

Many on here bother with a private pension? I've got one with Aviva which I pay a fairly minimal amount in at the moment, but I've opted out of my workplace pension with a view to paying in the difference that'll now be in my salary. My thinking was that it would allow me greater control with the money going into one pot, and I can be flexible with the payments if need be.

Effectively, by opting out of the workplace pension you have turned down a pay rise.

 

[chunkyshanhawk53]

I get tax relief on my private pension.

But then you miss your employers contribution?

 

[dixonsafc]

I get tax relief on my private pension.

Which you’ve said you pay a minimal amount into? So you’ll get a minimal amount of tax relief and none on the money you are saving?

Unless I’m missing something?

 

[Butcher's Coat]

Best thing I ever did was to start a private pension.
I started it off in my late 20's - and always topped it up to the max I was allowed to each year.
And when allowed to - paid-in lump sums too.
I took early retirement and I am on "draw-down" now - and reaping what I have sown.

 

[taipeisafc]

Many on here bother with a private pension? I've got one with Aviva which I pay a fairly minimal amount in at the moment, but I've opted out of my workplace pension with a view to paying in the difference that'll now be in my salary. My thinking was that it would allow me greater control with the money going into one pot, and I can be flexible with the payments if need be.

Personally I put in to my employers pension up to the maximum matched contribution level (i.e. I put 5% in and so do they) seems like turning down free money not too even if I have a little less choice in investment options. I do have a bunch of other pensions from previous employments (4 in total none of which are worth much)

 

[zwartekat]

I get tax relief on my private pension.

Yes, but tax relief is limited to £40k earnings max.

 

[The Breen Machine]

Which you’ve said you pay a minimal amount into? So you’ll get a minimal amount of tax relief and none on the money you are saving?

Unless I’m missing something?

It's 25% on all payments.

 

[Old Prestonian]

It's 25% on all payments.

20% or 40% subject to some limitations. You pay £80 and it is automatically increased to £100.

 

[The Breen Machine]

20% or 40% subject to some limitations. You pay £80 and it is automatically increased to £100.

Sorry yes, mis-calc there!

Another reason behind this is that I expect this job to be relatively short-term as a bit of a stepping stone, and I've seen a couple of horror stories re: payroll and the pension scheme so I want to at least have control of my money and where it's going.

 

[Kent_Mackem]

I am my own employer via a limited company so I pay into a SIPP. Also means the kids get the lot tax free if I die before taking it or before emptying it.

 

[jubblies]

Just put everything in Bitcoin and Xcite Energy iirc

 

[Mackem00]

I pay into mine and the dream is to be made redundant around the 55 mark and pack in work altogether. Won't happen like but never mind.

 

[Longy]

But you’ll miss out on the tax relief and employer contributions which is the one of the main points of having it?

He’d still get tax relief on anything paid in, but aye, as had been mentioned, your employer will give you free money into your pension.

 

[HABA87]

I pay into mine and the dream is to actually see some of it before I die.

 

[Longy]

I pay into mine and the dream is to actually see some of it before I die.

You’ll only have to live to 55. Or 57 if you’re a bit younger. Not the most outlandish goal!