confused87
Registered User
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- 79
Was listening to this discussion between 2 lads only yesterday, They were laughing at an older lad here at work who was said to be over subscribed on avcs past his max lump sum limit, he had pot of 260k in dc pot along with DB Care pension we all have. I made the point he can put any extra into ARF, but they said he will be taxed at high rate no matter what so he is mad to go over 200k in avc pot. Are they not completely missing the point of tax free compound growth in the pension pot and say he didn't contribute any more and just took the money as taxable income(52%) and invested outside of pension wrapper he would then have 33% tax to pay on gains outside pension wrapper too. Is it not a no brainer to invest max amount in pension and anything over lump sum limit into ARF rather then investing taxed income outside pension? These lads were in their 50s so a lot closer to retirement then me but seemed to have the understanding all wrong. Lot people here seem to think get avc pot up to 200k limit and leave it at that.