02 Sep 2009Blog

Pension or Property?

by Maxwell

An interesting question! Some good tips in this article:

With the recent financial turmoil, is saving in a pension still a good idea?

Mention the word “pension” in the pub and you’ll get a barrage of opinion.

Pensions are great…

There are some that love them. After all, save in one and you’ll benefit from tax relief on your contributions straight away. Although, pensions are taxed when you take an income once you have retired.

Your employer may also contribute to your pension for nothing (which is a salary boost). And all going well you’ll end up with a healthy pot when you come to retire, from which you’ll usually be able to take a 25%, tax-free lump sum.

What’s more, if you’re lucky enough to have joined a defined benefits scheme (final salary pension) you’ll be able to look forward to receiving up to two thirds of your final salary, guaranteed, when you retire.

Oh no they’re not…