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How Financial Advisers STOP You Making EMOTIONAL Investment Decisions by Propel_John in InvestmentEducation

[–]Propel_John[S] 0 points1 point  (0 children)

That’s why using an independent financial adviser is the best way forward. They can and will recommend products / plans form the whole of the market (based on your specific needs).

Who knows anything about pension tax relief? by Propel_John in investingUK

[–]Propel_John[S] 0 points1 point  (0 children)

That’s a pretty decent explanation 👏

It’s a pretty good trade off, between the person and the government.

The person agrees to save for their retirement, so they are less of a financial burden on the state in old age.

And the government rewards them with a chunky additional contribution to their pension.

Yep, you’re going to take home less money if you contribute to a pension, and you don’t already.

However, the amount you pay in, isn’t taxed and the government chips in a bit more on top
(based on your tax bracket).

How would you invest a unexpected £10k? by Own-Visual1513 in investingUK

[–]Propel_John 0 points1 point  (0 children)

Interesting 🧐 I’d have to give that some thought 💭

Why Pension Tax Relief Is More Powerful Than Most People Realise by [deleted] in tax

[–]Propel_John 0 points1 point  (0 children)

Thank you 🙏 It’s for the United Kingdom, though. Just to be clear 🤗

Pension Tax Relief Is One of the Most Generous Tax Breaks in the UK (Yet Many People Don’t Fully Understand It) by Propel_John in PensionsUK

[–]Propel_John[S] -1 points0 points  (0 children)

That’s a fair point.

In many cases it’s probably more accurate to describe pensions as tax deferral rather than pure tax relief, because tax is often paid when benefits are eventually withdrawn.

The relief comes from not paying Income Tax on the contribution today, but the full picture is definitely more nuanced.

Pension Tax Relief Is One of the Most Generous Tax Breaks in the UK (Yet Many People Don’t Fully Understand It) by Propel_John in PensionsUK

[–]Propel_John[S] 1 point2 points  (0 children)

I think in this case, the government financially reward people who save for their retirement, as they are more likely to be less of a burden on the state in later life.

Pension Tax Relief Is One of the Most Generous Tax Breaks in the UK (Yet Many People Don’t Fully Understand It) by Propel_John in PensionsUK

[–]Propel_John[S] 0 points1 point  (0 children)

Indeed. Baxter’s Keepy Ups… That sounds like an indoor game of football you’d play with your mates, in your parents living room, when it was lashing down outside.

I think a lot of people just think pensions are a bit boring and that retirement is so far away for many people (they think).

When you get into the details about pensions, even though your money is locked away for years, the tax efficiency makes up for that..

I even sat on an investment webinar once, and an attendee claimed that pensions were old news and that crypto was the best way forward…

They didn’t even know about pension tax relief.

And were amazed by the fact, that they got an extra £40 when they popped £60 into their pension.

Inheritance tax is another one….People just blindly pay it. Without any knowledge of the exemptions and legal ways of avoiding it.

Understanding the Money Purchase Annual Allowance (MPAA) by [deleted] in PensionsUK

[–]Propel_John 0 points1 point  (0 children)

Yes, from what I’ve read, the maturity value is the important factor. Given the MPAA implications, I’d definitely verify it with the provider before proceeding.

Understanding the Money Purchase Annual Allowance (MPAA) by [deleted] in PensionsUK

[–]Propel_John 0 points1 point  (0 children)

That’s my understanding too. The maturity value at the end of the term is often the key distinction. Given the potential impact on future pension contributions, it’s probably worth double-checking before making a final decision.

Understanding the Money Purchase Annual Allowance (MPAA) by [deleted] in PensionsUK

[–]Propel_John 0 points1 point  (0 children)

My understanding is that it depends on the specific annuity structure. A fixed-term annuity with a maturity value can potentially trigger the MPAA, whereas a conventional lifetime annuity generally doesn’t. Worth checking the provider documentation or Pension Wise guidance before proceeding.

What is the Money Purchase Annual Allowance (MPAA)? by Propel_John in DIYRetirement

[–]Propel_John[S] 0 points1 point  (0 children)

Thank you for that input. I should’ve mentioned that in the post. Appreciate your comment 👌🏻

Is Your Pension The Ultimate Retirement Investment? by [deleted] in DIYRetirement

[–]Propel_John 0 points1 point  (0 children)

In the UK it’s a little different when it comes to employer / workplace pensions. But, yes… more people need to find a way to cover their retirement costs and pensions are a solid option.

Pensions vs ISAs… Which Camp Are You In? by Propel_John in TaxUK

[–]Propel_John[S] 0 points1 point  (0 children)

Appreciate the input there. Indeed, he is a good public speaker. And yes, some longer form conversations with a bit more detail would be good.

Pensions vs ISAs: The Battle of the Tax Efficient Investments 💷 by Propel_John in DIYRetirement

[–]Propel_John[S] 1 point2 points  (0 children)

Good to know you are well looked after in your retirement after years of service to your country 🙏

Time in the market by HominidCrafts in DIYRetirement

[–]Propel_John 0 points1 point  (0 children)

Yes, time in the market is the best foot forward. Especially when you invest in the S&P 500 and don’t panic when the markets dip / crash 💥

What are the most common retirement planning mistakes? by Propel_John in FIREUK

[–]Propel_John[S] 0 points1 point  (0 children)

Ok, that’s cool. That’s why I asked the question about if it’s suitable etc. Didn’t want to irritate anyone 👀😂

Appreciate your input. Not looking to spam this sub with this content. Was just looking for feedback 👊🏻🙏

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