Pension vs Other investments

[wizard1974uk]

I do have a company pension from my last permanent job which I can no longer contribute to.

In your opinion would it be better to put money into a private pension or would you be set to gain more by investing your money in the long term into ISAs, stocks and shares etc.?

[Roach-Rampino]

Personally I think pensions are a waste of time. We helped our senior managers to make property investments, which will be much more beneficial in the long run.

[wizard1974uk]

That's what I was thinking, at the moment my pension if I were to retire now would only give me in the region of £7k a year to live on.

[ELT]

The long running arguement - ISAs V Pensions

With pensions, you get your tax relief on contributions i.e you pay in £78, the government give an extra £22 in tax relief, meaning that £100 is paid into your pension.

You also have a guaranteed income FOR LIFE, hence why the annual pension amounts given seem quite low. You get 25% of your pension fund to take as a tax-free lump sum. With pensions being a long term vehicle, there is also scope for growth, dependent on the funds you chose.

With ISAs, the main attraction against the pension is having access to your capital whenever you want. Although, many people find themselves with nothing to live on by the time they reach age 70 when relying on ISAs to provide an income in retirement.

Of course, they are tax-free (apart from 10% on UK dividends), although the contributions don't receive tax relief like the pensions.

So - its a matter of personal choice! I would personally opt for the pension every time though - only because I couldnt trust myself not to squander my retirement fund away!

Emma Thomas
Wallwork Ludlow Ltd

[pumpman]

Im of the opinion pensions are shite, when I first started in business, we were told by the accountant that they were good tax free blah dee blah , in the last 5 years Ive put in just over 20 grand to it and my statement says projected value of just over a grand a year pension, the financial advisor we have who is part of the same firm of accountants all drive big flash cars never seem to be not on holiday and the amount they cream off your pension payments even if it performs crap never ceases to amaze me, its why a lot of peeps I know have invested in property because at least the leaches cant get their grubby hands on it( the firm we use are chartered and I dont mind paying the accountant a wodge because they save us money but the financial advisor does not show me the same confidence. That said if your firm is paying you into one of the now rare final pension salaries then thats fine.

[phlix]

Pension's are only shit if you invest in shit funds.

My pension performs fine - in the region of 8% a year. I contribute 300 quid gross, which translates to 366 net, also I get 54 quid back cos I pay 40% tax. So I every month 366 gets put in my pension at a cost to me of 246 quid. Then my employer's contributions get added too.

I should be able to comfortably semi-retire at 55.