Stakeholder pension

Sep 08, 2004 3 Replies
A

Article in Daily mail today (08/09) on pensions which basically implies that stakeholder pensions are not worthwhile as the government introduced means tested pensions credit.



My wife and I will both have occupational pensions (at 60) and I have used our full entitlement to stakeholder for the last 3 years as I liked the fact that each



2808 was turned into 3600 we are both 50 this year and plan to finish working in 5 years. Lots of other investments in cash ISA`s, Toisa, no mortgage etc

My question is should I continue to invest in stakeholders each year? Are the pension credits really only designed for those who are cash poor upon retirement? Should I go on a mad spending spree now so that I can get the pension credits upon retirement?


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D

stakeholder

It's wrong to say that as the means testing may not be present when you retire.

Should I go on a

It depends whether you occ + stakeholder pension is greater than the MIG.

Daytona

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R

Should I go on a

It also depends on whether you want to be poor in retirement. What's the point in disposing of all your money so that you can live on meagre state benefits?

Rob Graham

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J

stakeholder

£2808 was

years. Lots of

Should I go on a

If you feel reasonably secure with your existing provisions, it would probably be better to start accumulating a big pot of money in one form or another. With sensible planning in suitable investments, you can dispose of these investments with no liability to tax and make use of the £15 CGT allowance you have between you. Every single year. Check back on this newsgroup for examples. You may be amazed how much cash can be realised with no tax to pay, although this will diminish as the years pass.

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