Pensions have become exciting
June 2015
Pensions have become exciting, honestly!
I read an excellent article in the FT Weekend recently by Merryn Somerset Webb which further confirmed to me that the erstwhile much maligned pension plan has become probably the most tax efficient savings vehicle in the world, ripe for the creation, enjoyment and retention of family wealth.
- Stick money in and the government gives the investment a kick-start of 25% plus some cash back if you are a higher rate tax payer.
- Leave the money to grow tax-free.
- Reach age 55 and you can have unlimited access to the fund - tax man may wreak havoc though.
- Partially tax-free on exit.
If you don't manage to use up the whole pot before you pass from this world then how about:
Proceeds available free of tax on death before age 75 and no Inheritance tax if the remainder cascades down the generations within the pension wrapper.
Now I realise that I may appear to be quite sad but all this makes pensions quite exciting.
Risk warning:
Please be wary of the ulterior motives of loved ones who may stand to benefit from the new pension rules!
Adam Caga