Munchkin:
But who in their right minds buy’s an annuity nowadays?
It’s all about pension drawdown and managing it. I’ve got pensions and ISA’s and just treat it as one pot.
Only difference is tax relief on pension payments (less tax paid now) but tax paid when drawn. This can be managed by drawing max tax free allowance from pension and topping up from ISA.
The max tax free allowance taking state pension into account is around 3k’s worth of extra pension any income after that gets hit.
Agreed Annuities are a junk product and were from the start.They really should be subject to compensation for miselling let alone pensioners continuing to be locked into them without the option to close them and move their remaining pension pot out and manage it and draw on it as they choose.Bearing in mind that any growth in the pot after annuity payments start goes to the provider not the pension holder.Annuities are a scandal similar to the state pension.Both are rationed and weighted way in favour of the provider and still the providers try to take more based on the laughable everyone is living longer lie.
Which still then leaves the choice of play the stock markets or put the extra money into a larger mortgage building up more equity in a more valuable house.Which should increase in value at a better rate than an ISA and the equity can then be accessed tax free.Also less likely to end up with the possibility of getting back less than you’ve put in than playing the stock markets.
The issue of the older, richer, population buying scarce housing as an investment, rather than building more for the next generations to ACTUALLY LIVE IN ! is a national disgrace.
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Can’t deny that houses have been a good investment for decades, but it is a sign of the upside down society we live in here.
Munchkin:
But who in their right minds buy’s an annuity nowadays?
It’s all about pension drawdown and managing it. I’ve got pensions and ISA’s and just treat it as one pot.
Only difference is tax relief on pension payments (less tax paid now) but tax paid when drawn. This can be managed by drawing max tax free allowance from pension and topping up from ISA.
The max tax free allowance taking state pension into account is around 3k’s worth of extra pension any income after that gets hit.
Agreed Annuities are a junk product and were from the start.They really should be subject to compensation for miselling let alone pensioners continuing to be locked into them without the option to close them and move their remaining pension pot out and manage it and draw on it as they choose.Bearing in mind that any growth in the pot after annuity payments start goes to the provider not the pension holder.Annuities are a scandal similar to the state pension.Both are rationed and weighted way in favour of the provider and still the providers try to take more based on the laughable everyone is living longer lie.
Which still then leaves the choice of play the stock markets or put the extra money into a larger mortgage building up more equity in a more valuable house.Which should increase in value at a better rate than an ISA and the equity can then be accessed tax free.Also less likely to end up with the possibility of getting back less than you’ve put in than playing the stock markets.
The issue of the older, richer, population buying scarce housing as an investment, rather than building more for the next generations to ACTUALLY LIVE IN ! is a national disgrace.
.
Can’t deny that houses have been a good investment for decades, but it is a sign of the upside down society we live in here.
How is funding your retirement, using the equity in YOUR OWN house, you know the house that you LIVE IN, a national disgrace.
Yeah right let’s crash the housing market, by taxing house equity and turning the country into a massive social housing estate, to provide for the something for nothing generations that bought the Thatcher lie, that’ll fix it.
Pension providers, thieving pensioners’ cash, by holding back pension funds and keeping the growth for their own profit, based on the lie that those pensioners are living longer, and making pensioners pay tax on their pensions, to fund income tax cuts for the higher earners, is what’s a disgrace.
By your logic everyone should be forced to rent and the state pension, based on a life expectancy of 85 for men, is all that anyone should be allowed to claim.All to make the elites richer.
If you’re going to talk Socialist zb at least make it convincing comrade.
lolipop:
Guarantee Carryfast for a negative prediction of doom no matter what the subject.
Pensions are for an individual to sort out as to what they think they will need.Starting in a scheme early is better than thinking about your pension in your 50`s
Nothing to do with gloom.
Just the choice between Annuity, playing the stock market, or piling it all into the house.
If only I’d have given my parents all the money I’d wasted on an aborted unaffordable rip off pension plan when I was 20-30.
To instead pay down their mortgage and then buy a better more valuable house when we moved in 1996.
As for the stock markets investements can and do go down as well as up and you can get back less than you put in and most forms of drawdown, from either an annuity or SIPPS of around 3k over state pension, would be taxable.
Also doubtful if the stockmarket could ever guarantee a continuous compounding rate over 20 years let alone 40 in view of the above.
I am in the final stages of my last few years of planning, plans went out of the window a bit with covid and I should be in Portugal now…But it has given me the opportunity to sell my house in the UK and have a clean break.
I am having a complete life change and becoming self sufficient, no tech and no people, just a small farm, seeds, trees, water and a gun, I am done with this world, it has nothing to offer me.
Semi retired 10 years ago at 46 and I am one year behind plan to total escape and covid has made me realise that I am making the right decision, I want out big time.
I have residency and all I need, just need to hire a van a couple of times because I cannot get a lorry up the road to my place, too steep and no way of getting anywhere near the house…I have worked out that I will only have to venture out into society once a month and hope to stretch that out to 6 and then decrease as time goes on…I have achieved all I wanted to achieve, including living on the top of a mountain
Tude:
I am in the final stages of my last few years of planning, plans went out of the window a bit with covid and I should be in Portugal now…But it has given me the opportunity to sell my house in the UK and have a clean break.
I am having a complete life change and becoming self sufficient, no tech and no people, just a small farm, seeds, trees, water and a gun, I am done with this world, it has nothing to offer me.
Semi retired 10 years ago at 46 and I am one year behind plan to total escape and covid has made me realise that I am making the right decision, I want out big time.
I have residency and all I need, just need to hire a van a couple of times because I cannot get a lorry up the road to my place, too steep and no way of getting anywhere near the house…I have worked out that I will only have to venture out into society once a month and hope to stretch that out to 6 and then decrease as time goes on…I have achieved all I wanted to achieve, including living on the top of a mountain
Best of luck , not what I’d want but if it makes you happy why not , will you be on your own , or wife / partner as well ( if it’s none of my business feel free not to reply )
Tude:
I am in the final stages of my last few years of planning, plans went out of the window a bit with covid and I should be in Portugal now…But it has given me the opportunity to sell my house in the UK and have a clean break.
I am having a complete life change and becoming self sufficient, no tech and no people, just a small farm, seeds, trees, water and a gun, I am done with this world, it has nothing to offer me.
Semi retired 10 years ago at 46 and I am one year behind plan to total escape and covid has made me realise that I am making the right decision, I want out big time.
I have residency and all I need, just need to hire a van a couple of times because I cannot get a lorry up the road to my place, too steep and no way of getting anywhere near the house…I have worked out that I will only have to venture out into society once a month and hope to stretch that out to 6 and then decrease as time goes on…I have achieved all I wanted to achieve, including living on the top of a mountain
Best of luck , not what I’d want but if it makes you happy why not , will you be on your own , or wife / partner as well ( if it’s none of my business feel free not to reply )
Thanks for the luck.
I shall be going with my current wife, she is not well and cannot get access to treatment here, so it is better to be in a place where we can get treatment, that was another consideration.
I will not pay another penny in tax to this country, that is why I am not working and just waiting until I can do a couple of van journeys with the small amount of stuff we are taking with us, got a few more motors to sell as well.
All of the people we have met in Portugal have been kind, helpful and generous, they even brought us food over Christmas and New Year as gifts and we enjoyed time with them around the bonfire over Christmas and when I return I shall be giving them all marmalade I have made from some my Seville trees, that is how it works over there, you all share what you have, it is just great.
