I kid you not, retire at 65 years and any personal pensions, saving etc you have accumulated. That take you over, for example the £7,500 threshold limit you have to pay tax on. To add further insult to injury here even the basic state pension(where applicable) is added all into it.
Many retirees are now finding out this hidden aspect, via nice letters from the Tax office informing them they owe them money and they are to pay tax on everything over that threshold limit..
I wish I was joking but I am not. So why bother putting money into a pension fund when instead of being secure in your old age, all it is doing until it drops to the threshold limit set is paying the tax-man. You might as well go to work until your drop.
Anybody else in the UK know this little sting existed?
Incidentally a 30 year old is advise to put away each month £389approx to provide a pension. Are the Government on drugs?
Why bother with a pension that will keep you (hopefully) head above water in your old age,when anything that is decent enought to do so is taxed and taxed at high rates too. Only laugh to come out of this is fat cat pensions will be taxed, smile wiped off they have loopholes they can use to get out of some of it.
Anybody on apension or putting money inot one here?
No I'm not and I haven't a pension other than the state of which I get the lower end seeing for my sin I was mother and not working for several eons. having seen, my parents get stung and my outlaws certainly does not inspire me to start one. What I aint got can't be taken by the tax man