Invest in an Index Fund or pay into a Pension when 20% relief is only available

[Loki1974]

Hi my wife is paying tax at the lower rate . She is 40 with no pension . Should she invest in a share index or start a pension . Is it a no brainer paying into a pension even if she only gets 20% tax relief . Thanks and all advice would be appreciated .

 

[Brendan Burgess]

Key Post - Should someone paying tax at 20% contribute to a pension

And if you are getting only 20% tax relief on your pension, you should not be contributing to a pension. I would take issue with that as a hard and fast - or even firm - rule. As I said, standard rate tax relief on contributions to the pension are not to be sniffed at. And then the pension...

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