Hi
Looking for some signposting really.
I've never really bothered that much about pensions. Yes, there is an occuptation pension scheme at work (not final salary!), and I pay in contributions which are matched by my employer.
But I've always been a bit put off by the whole pensions thing in that it seems a bit of a gamble - ie if you put lots of money into your pension (as invariably seems to be the advice), you run the risk that if you die before your expected life span, you lose the funds. (I don't have a spouse / dependant, so the survivor's pension wouldn't apply). And I like the idea of being able to spend my money on retirement (or before...) as I see fit.
Anyhow, when the Budget reforms came out - ie you can withdraw some or all of your pension funds aged 55+, no need to purchase an annuity - I thought, great, now is finally the time to put additional money in my pension (and also get to get the tax benefits). However, I understand that if you take out more than 25% of your pension pot, you get taxed on these amounts at 45% - meaning you lose nearly half of the money withdrawn!
I'm getting horribly confused - and no idea really if what I've outlined above is correct factually.
Can anyone recommend any guides on pensions that might be able to help me here? I haven't found Martin's money website paritcularly helpful here. I appreciate I can always see an IFA - but would prefer, at least in the first instance, to do a bit of self-education.
Thanks!
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5 replies
Aridane · 06/02/2015 09:14
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