Pension or property

farmerm

Member
Location
Shropshire
I hope some of those "more important" things either pay you an income or can be liquidated, unless that is you are happy to live on £7,000 per year state pension... I know my own small pot is nowhere close to where I would like it to be at this point, just got to hope the childless relatives assets don't all end up spent on care fees and cats charity homes I guess.. :nailbiting:
 
If you go down the pension route, you needed to have started in your early 20's unless you want to pay some big lumps in later which may not be good investing.
My Father started one for me and I have paid £1k a year in since for almost 45 years. It is now worth around £300k with a guaranteed annuity of 7%. Sadly these pensions are no longer available I believe.

If you are already getting close to retiring then probably it depends on how much income you want and do you want leave anything to wife/children?
Try and die in debt is always a good plan as no one will fight over what you leave!
 

farmerm

Member
Location
Shropshire
Just got to the point now (41) where Mrs teslacoils and I can put some aside for the future. I'm chipping away at the farm borrowings, and were sitting down to see what the plan is but I reckon we will get a little flat to rent out, and aim to put a monthly sum into the stock market.
is the monthly sum into the stock market not better though a pension? Remember for every £1 you pay pension tax relief means the the government top it up by 20p Buy a £1000 of shares directly and you have £1000 in shares, buy them though a pension and your £1000 investment immediately increases to £1200
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
is the monthly sum into the stock market not better though a pension? Remember for every £1 you pay pension tax relief means the the government top it up by 20p Buy a £1000 of shares directly and you have £1000 in shares, buy them though a pension and your £1000 investment immediately increases to £1200

Accountant says not. Tax man giveth. Tax man taketh away. Plus we're not really secure enough to not need it at short notice.
 

Grassman

Member
Location
Derbyshire
I hope some of those "more important" things either pay you an income or can be liquidated, unless that is you are happy to live on £7,000 per year state pension.
I did buy a small farm and a house.
And had a pension for 10 years or so 30 years ago.
Big problem when your renting and starting out with basically not a lot is actually saving:)
 

robs1

Member
Unless you are paying 40 % tax or are running your own company and can run a ssap I think they are waste of time, while you save tax on the way in you pay charges every year and tax o the way out, I have one that I have paid into since 85, my tessa and then isa has on average done better and no tax on drawing it out.
My industrial units have made me far more after tax and I can pass them on
 

Brisel

Member
NFFN Member
Location
Midlands
is the monthly sum into the stock market not better though a pension? Remember for every £1 you pay pension tax relief means the the government top it up by 20p Buy a £1000 of shares directly and you have £1000 in shares, buy them though a pension and your £1000 investment immediately increases to £1200

A pension is only tax deferred. Other than the lump sum you can take out, you're taxed on the income as you draw it down. At least you have a bigger sum to invest to start with as the taxman gives you some back to start with.

I'm fortunate to have both property and a pension but I'm an employee in a tied house, so thought it important to have some bricks to live in if necessary. I fully expect the Chancellor to have a bigger draw at both in the future but at least the house has a bit of capital growth, rental income and my pension averaged 8% pa since I started it 15 years ago on a high risk profile.
 

Brisel

Member
NFFN Member
Location
Midlands
A Sipp Gets cash loaded on to it when it goes in, and true after 25% it gets taxed coming out, but dont forget all of its growth while in there is Tax free, if you are going to pay tax at 40% its a no brainer... but there are limits now on amounts.

The profits of the pension company are taxed. That was another of Gordon Brown's great raids on retirement funds. The Lifetime Allowance on a pension fund is just over £1m. You can pay in 100% of your income or £40k/year, whichever is lower.
 

farmerm

Member
Location
Shropshire
A pension is only tax deferred. Other than the lump sum you can take out, you're taxed on the income as you draw it down. At least you have a bigger sum to invest to start with as the taxman gives you some back to start with.

I'm fortunate to have both property and a pension but I'm an employee in a tied house, so thought it important to have some bricks to live in if necessary. I fully expect the Chancellor to have a bigger draw at both in the future but at least the house has a bit of capital growth, rental income and my pension averaged 8% pa since I started it 15 years ago on a high risk profile.
As you can take out 25% tax free I am not sure I agree with your conclusion of pension tax relief only being tax deferred? A diversity of retirement income is certainly the safest approach. Who knows what is around the corner! A catastrophe of nature or man and all our future provisions might wiped out overnight. For all I know, investing in a well stocked underground bunker, armored vehicles and high powered weapons might be ones best investment for a long and healthy future... but we have to live in hope.
 

Netherfield

Member
Location
West Yorkshire
I've got a pension, started when employed, thence becoming a partner it had to deferred. When I was 60 it matured there was aroung £27k in the pot, and it would pay out Just over £800 a year. Had it been under IIRC £23k I could have taken the sum as a whole without tax, over that and tax to pay if all taken out. Accountant advice was to leave it where it was and it could at least grow a bit more, and that my widow or daughter could draw it on my death tax free.

Other than that we survive on rental income from land and some properties both bought and inherited over the years, along with savings from selling a little for building.

If really hard up I could always sell bit more land here and there.
 

Lincsman

Member
Arable Farmer
Location
Lincolnshire
The profits of the pension company are taxed. That was another of Gordon Brown's great raids on retirement funds. The Lifetime Allowance on a pension fund is just over £1m. You can pay in 100% of your income or £40k/year, whichever is lower.
Its not a pension fund, its your own Self Invested Personal Pension... usually a heap of shares.... or cash
 

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Man fined £300 for bonfire-related waste offences

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Written by William Kellett from Agriland

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A man has pleaded guilty at Newtownards Magistrates’ Court to waste offences relating to a bonfire next to the electrical sub-station on the Circular Road in Newtownards, Co. Down.

Gareth Gill (51) of Abbot’s Walk, Newtownards pleaded guilty to two charges under the Waste and Contaminated Land (Northern Ireland) Order 1997, for which he was fined £150 each and ordered to pay a £15 offender’s levy

On June 25, 2018, PSNI officers went to Gill’s yard, where they found a large amount of waste consisting of scrap wood, pallets, carpet and underlay.

Discussion with Northern Ireland Environment Agency (NIEA) officers confirmed the site...
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