LET THOSE WITH THE BROADEST SHOULDERS BEAR THE HEAVIEST BURDEN….

[SFTPhotography]

May I raise a point.

Many say the rich and well off are greedy for wanting to minimise their tax liability and pay the bare legal requirement of tax not more than is due. Why is it greedy to want to hold on to what is yours through either your Birth Right and hard work of your ancestors, what is so greedy about wanting to hold on to what you've earned through your own success and endevours.

Surely the "greedy" ones are the the ones wanting to tax puntively and heavily and thus take what isn't theirs for their own selves?

 

[Phil V]

But then I wouldn't be able to stash away extra money for my retirement. As I said the 40% threshold leaves too many people in catch 22.

Your pension savings should be untaxed. How are you 'saving for your retirement'. Getting that sorted would sort out your overtime anomaly.

 

[nilagin]

Your pension savings should be untaxed. How are you 'saving for your retirement'. Getting that sorted would sort out your overtime anomaly.

My pension contribution is deducted from my pay before tax. But when I retire, although I will be able to take a tax free lump sum, my monthly pension payment will still be liable for tax unless the lower tax threshold rises dramatically between now and then. I could be taking early retirement in 5.5yrs time if I think the money is right, in the mean time the overtime money is going into isa's which will provide me with a tax free income to supplement my pension and by then hopefully more than offset any tax liability I will have on my pension.

 

[Phil V]

My pension contribution is deducted from my pay before tax. But when I retire, although I will be able to take a tax free lump sum, my monthly pension payment will still be liable for tax unless the lower tax threshold rises dramatically between now and then. I could be taking early retirement in 5.5yrs time if I think the money is right, in the mean time the overtime money is going into isa's which will provide me with a tax free income to supplement my pension and by then hopefully more than offset any tax liability I will have on my pension.

I think (I'm not an IFA) you'd be better off increasing your pension contributions than investing in an ISA. Whether that's an option for you I have no idea. But if I could afford to I'd be adding to my pension pot, I know the return would be greater than from an ISA

 

[nilagin]

I think (I'm not an IFA) you'd be better off increasing your pension contributions than investing in an ISA. Whether that's an option for you I have no idea. But if I could afford to I'd be adding to my pension pot, I know the return would be greater than from an ISA

I'm in a company pension and apart from being promoted my pension contribution is a set amount and can't be increased other than in line with my yearly pay rise. I could make voluntary contributions to boost the pension but they can only buy an annuity and fellow workmates who've been paying into this for quite a few years have found they are not worth a great deal. Plus overtime can't be guaranteed so I could never save a set amount each week. As I said earlier part of my monthly pension when I retire will be liable for tax, With ISAs the money is always accessible in the event of an emergency, but come retirement I will get a tax free income from the interest.

 

[Phil V]

I'm in a company pension and apart from being promoted my pension contribution is a set amount and can't be increased other than in line with my yearly pay rise. I could make voluntary contributions to boost the pension but they can only buy an annuity and fellow workmates who've been paying into this for quite a few years have found they are not worth a great deal. Plus overtime can't be guaranteed so I could never save a set amount each week. As I said earlier part of my monthly pension when I retire will be liable for tax, With ISAs the money is always accessible in the event of an emergency, but come retirement I will get a tax free income from the interest.

I can buy actual extra 'years' of pension entitlement. Which would help in all kinds of ways if I could afford to do it