Discussion
Loved the gag about Steve Webb. Lots of change in there, loads to mull over, I enjoyed it over a pint by the pool.
Osborne seems to have had a chicken bones budget. He has jumbled them all up, shaken them in his cupped hands, thrown it all over his shoulder and said ".. there you go, make of that what you will".
This is going to be a help to some..
http://www.professionaladviser.com/professional-ad...
Osborne seems to have had a chicken bones budget. He has jumbled them all up, shaken them in his cupped hands, thrown it all over his shoulder and said ".. there you go, make of that what you will".
This is going to be a help to some..
http://www.professionaladviser.com/professional-ad...
Ginge R said:
It's a nice little banker on the side if you're a high earner and young. My initial impressions though.. don't ditch the pension just yet.
Isn't it only worthwhile if you haven't bought your first home yet, and intend to use the lifetime ISA as your deposit?Otherwise, the tax relief you'd get via AVCs or a SIPP would be better than the 25% government 'bonus'.
BeefMaster9000 said:
Isn't it only worthwhile if you haven't bought your first home yet, and intend to use the lifetime ISA as your deposit?
Otherwise, the tax relief you'd get via AVCs or a SIPP would be better than the 25% government 'bonus'.
There is increased flexibility on when you withdraw it vs. a pension. Otherwise, the tax relief you'd get via AVCs or a SIPP would be better than the 25% government 'bonus'.
Feels like the first step in softening us up for removing tax relief on pension contributions and moving towards an ISA style model across the board to me.
BeefMaster9000 said:
Isn't it only worthwhile if you haven't bought your first home yet, and intend to use the lifetime ISA as your deposit?
Otherwise, the tax relief you'd get via AVCs or a SIPP would be better than the 25% government 'bonus'.
Mate, to an extent, you're right. I think the hierarchy of saving for retirement is certainly going to change, and it'll be a lot more involving for a lot more people. This is what I wrote in my blog.Otherwise, the tax relief you'd get via AVCs or a SIPP would be better than the 25% government 'bonus'.
<My gut instinct at this stage? Useful for those who divorce quite early and who need to save for a home, and in itself, quite a shiny proposition. But, and these are only initial feelings because caution myself about snap rush to judgements, this is a welcome addition for anyone youthful and wealthy enough to have a cash surplus and who wants to make use of it.
But for the majority, you'd probably be asking (well, the majority probably wouldn't be) why he is making this look (superficially at least) so tempting. Call me cynical, but once you start diluting the principle of something, you also make it easier, later on, to start cutting off other little pieces here and there too.
Basically, he's dividing and ruling the principle of retirement planning as we have known it for so long. I think we're certainly seeing the end of the pension as we know it, but honestly, for most people who want to set money aside for their old age, I think news of its ultimate demise is probably, a little premature.>
Ginge R said:
Basically, he's dividing and ruling the principle of retirement planning as we have known it for so long. I think we're certainly seeing the end of the pension as we know it
A pension is of course only one form of saving; an expensive, stupidly complicated one that has become thoroughly beaten up by successive waves of political meddling and goalpost moving. It's come so far from its roots it should be quietly put down, and the people who've grown fat from other people's savings can shop in Lidl instead. This will be contentious no doubt to those so close to the grindstone all they see is blurred carborundum.Craikeybaby said:
I'm in my early 30's and have bought a house, should I be doing anything with this life ISA?
I'm in the same boat. I'll be 32 in April 2017 so have 18 years to gain the £1k per annum "bonus".
From what I've read (I'll admit to that not being extensive), provided you are already in a workplace pension it seems a bit of a no brainer.
Simpo Two said:
A pension is of course only one form of saving; an expensive, stupidly complicated one that has become thoroughly beaten up by successive waves of political meddling and goalpost moving. It's come so far from its roots it should be quietly put down, and the people who've grown fat from other people's savings can shop in Lidl instead. This will be contentious no doubt to those so close to the grindstone all they see is blurred carborundum.
It seems others have been struggling with the same issue on another thread in this forum, but for the record:- A pension is simply a savings 'wrapper' than gives you some tax advantages in exchange for restricted access to your money.
- The investment options within a Pension typically mirror those you can get in a stocks and shares ISA.
- Charges are no limited to an annual management charge (limited to 0.75% p.a., I think)
Maybe that's complicated for some...
sidicks said:
A pension is simply a savings 'wrapper' than gives you some tax advantages in exchange for restricted access to your money.
The investment options within a Pension typically mirror those you can get in a stocks and shares ISA.
Agree entirely.The investment options within a Pension typically mirror those you can get in a stocks and shares ISA.
sidicks said:
Charges are no limited to an annual management charge (limited to 0.75% p.a., I think)
I was sold a SIPP I don't need and found that the TER was 1.33% - but by the time other fees were added - which took some winkling out I hear - it was about 2.3%.So if my fund grows by 4.6%, half that growth (50%), is taken in charges. My money is feeding the industry regardless of performance, which doesn't sit well with me.
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