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Post by ravey123 on Jun 21, 2008 13:41:02 GMT
I know this is not truly a footie subject but I need some impartial advice.
Being DEEPLY suspicious of savings for retirement and wanting to do something about it now what is the best way to put money aside for tax efficient use when I retire - is it true that even though you pay into a pension from taxed income the money you draw out of the pension is then taxed.
Is there benefit in putting money into savings in Jersey, Isle of Man etc etc etc - if so what's the best way to go about it - anyone got any RELEVANT and FACTUAL info for me.
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Post by Lakeland Potter on Jun 21, 2008 14:25:17 GMT
Yes, your pension will be taxed (assuming you have enough pension to pay tax) but you won't pay National Insurance on it. BUT the money you pay into a pension fund attracts an additional top up payment from the government which effectively refunds the tax you paid when you earned it.
EDIT - you may, of course, commute some of your pension pot to draw a tax free lump sum before you draw your (taxable) annuity on the balance.
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Post by ravey123 on Jun 21, 2008 14:38:21 GMT
Fornside
Thanks for the info - as informative as ever!
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