Hi,
Just want to make sure that my understanding is correct. The way I look at it if you want to invest money for the future it makes sense to put as much of it as you can into your pension.
If you are on the marginal rate of 42% and you pay 450 into pension the government effectively pay another 300 for me by way of tax relieft. Therefore I have made about 70% return on my investment.
I was speaking with some pals and they seemed to think they were better doing personal investments in shares/property rather than pensions.
Apart from the lock-in of your money and also the max relief bans am I missing something here??
Thanks
arry
Just want to make sure that my understanding is correct. The way I look at it if you want to invest money for the future it makes sense to put as much of it as you can into your pension.
If you are on the marginal rate of 42% and you pay 450 into pension the government effectively pay another 300 for me by way of tax relieft. Therefore I have made about 70% return on my investment.
I was speaking with some pals and they seemed to think they were better doing personal investments in shares/property rather than pensions.
Apart from the lock-in of your money and also the max relief bans am I missing something here??
Thanks
arry