Cinnamonjam
Registered User
- Messages
- 9
Hi Cinnamonjam,So, that leaves me thinking, why am I paying into a pension myself? If this is what the 'benefits' are, then maybe I should just bank the money or buy a second property. I know the tax relief is good when paying in, but won't I be taxed on anything I take out after the lump sum anyway ? And if I buy something tangible like a house with my extra cash, at least my kids can inherit that. Any thoughts from people wiser on the subject?
And my second is: Is the arf option any better or would you also have to live to 90+, just to get the value of what's in the fund.
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Hoping someone can help me understand this....
My father's pension is due to mature soon with BOI. It's worth 50k. He can take 25% or 12.50k as a lump sum. On the remaining 37.50k, he's been offered annuity or amrf. The annuity option looks like a complete and utter scam. They're offering 112/mth. So to see the 37.50k back, he'd have to live to 93. And they'll only pay to dependents for 10 years. I don't really understand the other option. Its basically another fund, so the returns are uncertain, but if it's anything like the annuity option, I'd assume it will also pocket a large chunk of the fund.
So, that leaves me thinking, why am I paying into a pension myself? If this is what the 'benefits' are, then maybe I should just bank the money or buy a second property. I know the tax relief is good when paying in, but won't I be taxed on anything I take out after the lump sum anyway ? And if I buy something tangible like a house with my extra cash, at least my kids can inherit that. Any thoughts from people wiser on the subject?
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