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TOPIC: Pensions Pensions Pensions

Pensions Pensions Pensions 25 Jun 2021 17:13 #1

  • Paitech
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Thank you Ron ,remo.
Much appreciated.
Have a great weekend
Ta
G
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Pensions Pensions Pensions 25 Jun 2021 16:13 #2

  • Ronmould
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Paitech wrote:
I read this from an article below:

With SIPPs, you get the tax benefits up front. There’s full tax relief on all your contributions, with basic-rate tax (20%) automatically reclaimed and paid into your pension. Higher-rate taxpayers (at either 40% or 45%) can reclaim another 20% or 25% through their tax returns.

What exactly does it mean?

This applies to all pensions you pay into yourself (i.e. not through company polices that take money pre tax). It means the fund will automatically add 20% more than you pay in to the pot, i.e. £100 deposit = £120 in your fund.

If you are a higher rate tax payer you are allowed to claim back the additional tax you have already paid on that money (the extra 20 or 25%) by declaring it on your self assessment.

Effectively all money you pay INTO a pension is untaxed, if you have already been taxed on it before you pay it in then you can claim it back.....it's basically a swizz by the government, if they taxed you on the money that was paid in they couldn't tax you on the money that was taken out. This way you pay it in tax free so they can tax the more substantial amount (generally) that the fund holder draws out. It's similar to what they did with withdrawing betting tax - it seems like the punter is winning but ultimately it means more in their coffers.
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Pensions Pensions Pensions 25 Jun 2021 10:37 #3

  • remo
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money is taken from the gross wage, before tax is taken. Hence why its tax free.
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remo
Last Edit: 25 Jun 2021 11:17 by remo.
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Pensions Pensions Pensions 25 Jun 2021 01:17 #4

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I read this from an article below:

With SIPPs, you get the tax benefits up front. There’s full tax relief on all your contributions, with basic-rate tax (20%) automatically reclaimed and paid into your pension. Higher-rate taxpayers (at either 40% or 45%) can reclaim another 20% or 25% through their tax returns.

What exactly does it mean?
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Pensions Pensions Pensions 21 Jun 2021 11:40 #5

  • Ronmould
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I'm with II, was originally with TDW but they were taken over by II a year or two ago. Pay a quarterly fee and get so many free trades for that. Once you get to pension age you can start drawing down a monthly income but continue to trade with the remaining pot.

I'm hoping I can build a pot big enough to allow...and trade well enough... to be able to cover my yearly drawdowns with profits/dividends so the core pot remains untouched.
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Pensions Pensions Pensions 21 Jun 2021 09:42 #6

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Thank you remo. Makes sense.
I am trying to get some way to start a pension pot. This really helps
Ta G
Have a good day and happy trading
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Pensions Pensions Pensions 21 Jun 2021 09:36 #7

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If you want to do it yourself then you just need to set up a SIPP. Self invested pension plan.
That’s a private pension.
Some companies will pay into your sipp from your wages.
In a SIPP you can buy and sell shares as normal and will be tax free . You have a life time allowance of currently £1million and seventy thousands. You only start to pay tax when you go above this on your sipp but only when you start to draw down on above this figure.
Most people will take 25% tax free from there pension when they retire. So 25% of your pot basically. So £1070000 of this can be tax free.so 25% of this ….The basic aim of a pension is to have enough money to last 20 years. So for example if you had 200000k then you can pay yourself 10k per year.
Most financial adviser will use prudential and look to grow your pot around 3% per year and they will charge 0.5% per year for this.
I’d personally will do this myself as I don’t trust any financial people as I’d rather trust myself.
Hope that make sense .
If your looking for specific companies then I don’t know..
Remo
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Pensions Pensions Pensions 20 Jun 2021 06:33 #8

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Hi all,

Just wanted to know if anyone knows, or recommend any pension schemes etc...

I am totally lost on this topic and want to set up something for my self....

Any advice or pointers would be of much help

ta
G
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