Pension plans help!! - HotUKDeals
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Pension plans help!!

unileeds Avatar
8y, 3m agoPosted 8 years, 3 months ago
Hi i need some help with a pension plan. My company is offering a 10% of my gross payment into a pension plan of my choice. But the thing is that I dont know if I'll be staying around till I am 55-65 or whatever. Can I withdraw the money in my pension plan, pay my tax and use it? I dont have an existing pension plan or anything. Personally I'd rather have the 10% money, pay my tax and use it as I chose, ie on a high interest account or overseas investments!!

Help on this would be really really really appreciated.. and repped accordingly!!
unileeds Avatar
8y, 3m agoPosted 8 years, 3 months ago
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1 Like #1
ill get bk to u on this one..... ill reply when i got the info.

spoke to my father he said to contact your financial adviser or the Financial Service Authority (FSA) who give free advice, they can help u decided whats best for u.
#2
I have something similar and you can't get at it until you are 55.
#3
wendyak
I have something similar and you can't get at it until you are 55.


But u see I cant see how its a perk.. the health of these plans is always questionable and returns barely above inflation if you look at the long run. My comapny is making it out to be like a massive benefit, but Id rather have the case and invest it. My investments in the last 2 yrs have yielded 40-45% returns TAX FREE!! (overseas so dont ask me how ).. it just seems like a rip off to me.. Im sure I can mange these.. even put them in a ISA or whatever and get a better deal. Do you know if companies will give say part of it as cash you you chose to opt out? if not y not!!?? It makes soo much financial sense!!
1 Like #4
Ok, the key aspect of a pension plan is that you get effectively tax free savings. You will be charged at upto 40% on any withdraws (dependant on salary and tax band). The pension plan is under your name also so if you move job or you will not lose this 10% as long as it is deposited in the pension fund now (and not at a later date).

The government will remove state pension and so it is generally advised that pensions are taken up. What goes down must go up and the stock markets will revive - maybe not this year but long term the market will be strong so technically it is a good time to invest as long as the correct investments are made. Any further questions please do not hesitate to ask.
#5
andyat2002
Ok, the key aspect of a pension plan is that you get effectively tax free savings. You will be charged at upto 40% on any withdraws (dependant on salary and tax band). The pension plan is under your name also so if you move job or you will not lose this 10% as long as it is deposited in the pension fund now (and not at a later date).

The government will remove state pension and so it is generally advised that pensions are taken up. What goes down must go up and the stock markets will revive - maybe not this year but long term the market will be strong so technically it is a good time to invest as long as the correct investments are made. Any further questions please do not hesitate to ask.


Well.. i'd like to know how can I get this money in cash now. I can make better investments and am financially disciplined enough to save the employers contribution in a fund of my own, which I have access to!! I may or may not be living in the UK, as I'd like to see the world maybe settle down in Oz or Dubai or the US, and would not want my money to be unavailable to me. And it just doesnt seem like a perk to me. I dont mind having the 10% contributions as just a 5% cash payment.. u know after all the tax and stuff is paid!! How do I negotiate a salary increment rather than a pensions contribution!! :)
1 Like #6
iI was once told that if you started a private pension plan once you had left the company,some of it can go in there.......then you can get at it. I don't know if this is still true as I now have two useless company pensions and no private one.
#7
unileeds
Well.. i'd like to know how can I get this money in cash now. I can make better investments and am financially disciplined enough to save the employers contribution in a fund of my own, which I have access to!! I may or may not be living in the UK, as I'd like to see the world maybe settle down in Oz or Dubai or the US, and would not want my money to be unavailable to me. And it just doesnt seem like a perk to me. I dont mind having the 10% contributions as just a 5% cash payment.. u know after all the tax and stuff is paid!! How do I negotiate a salary increment rather than a pensions contribution!! :)


It sounds like an agreement with your employer. There are various government schemes which support the employer for pension schemes (tax breaks etc.) so they might not be keen to do this. If moving abroad I'd suggest Dubai as they are tax free, you pension would follow you however but you may need to retain a UK bank account to draw it.

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