Hi, please someone confirm this, I can take 25% of my pension at retirement, tax free. Then the monthly income is TAXABLE.?
Surely this is not the case?
whats the point of me piling cash into pensions, as I have done, to avoid large tax bills, only to be taxed on the income at a later date??? I could have invested in property.
If it is really true about pensions being taxed, then I am devasted, and shocked, and I would warn everyone to avoid put your hard earned cash into pensions, its DEAD money. Invest in property.
Fingers crossed that pensions are not taxed. Please someone advise asap, Thank you.
Yes it's true, lifes a bitch, when you decide to retire you can take about 25% of the fund value tax free the remainder then as to buy an anuity (your pension) anuities are also subject to their own market pressures so incomes,e vary from differing providers, if you had placed your funds in property you still don't win, when you liquidate your assett you pay C.G.T (Capital Gains Tax) unless you manage your own pension fund and you aquired property through the fund, the bottom line is if you have income regardless of it's source that excedes your personel tax allowences (£5035 typical)then you will pay income tax, it's all part of our dearly beloved rip off system, oh by the way the last time i checked i could'nt afford to take my pension the rates were awefull and the quotes i got i would have needed to live till i'm 98 years old just to get my own money back
Whatever you do you will be taxed. It's one of those sureties of life. Even if you inherit but inherit less than the inheritance tax you'll still have to pay tax on it when you save it somewhere. You can only have an ISA tax free, and that doesn't take up much per year.
*It is not necessary to understand things in order to argue about them. -- Pierre De Beaumarchais
It is only taxed if it takes your income over the tax threshold.
Property rental income is the same.
In fact, any income in excess of your allowance is taxed.
If you are over 65, you can earn up to £7280 this tax year free of income tax or tax on interest. Anything over that is taxed.
I shall stick to my pension, after you take a tax free lump sum, (which you cannot do from an investment property!!) you are guaranteed an income for the rest of your life.
My pension forecast is currently £20,000 per annum, obviously this will increase over the next 25 years!
