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  • Tax

    Is 59 too late to start a pension?

    A simple over view is that to privately provide another Flat Rate State pension of £160 weekly/£8320 pa - Indexed from age 65 - would need a Pension Pot of £250k.

    Cl 24 only impacts mortgaged LLs who are not Incorporated - so there is no issue that we know about so far as to why you should not continue as a LL - though it may be too much hassle as you get older




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    I have invested in property for a very long time saveing a deposit doing the old 25%/75% deal and I have made a lot of money

    Today with the new Pension Freedom I back a Pension over BTL

    The Tax advantages are much better and pound for pound its a safer investment than BTL

    of course I am standing saying this as a wealthy Landlord who is 59 years old

    The figs your using are very old school and with pension freedom you can stay fully invested with out taking an annuity

    for the Wealthy Pensions are a tax haven you can even avoid IHT

    But If I were  starting today I would invest in BTL via a company and have both a pension and BTL

    I return well over 8% a year on pensions on average with out any Hassel from repairs arrears S24 ect

    today its both in my book

    I am also using pensions to build a commercial this year again all tax free

    Pensions are not just there to provide and Old age pension

    Its just like offshore money no Tax No CGT ect

    what is there not to love in pensions in 2015 if you can fund them at a high level



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    Learn Change and Adapt ?????


    Agreed - but average UK personal pension pot is tiny and would hardly buy a decent new car.

    Pension Drawdown also mandates that you show other ongoing income of £20k pa - so is clearly aimed at the wealthy

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    Its a rich man or women's tool

    It helps the wealthy more than any other sector

    Most working folk would need to put 25% of there salary into pensions anything less its not worth doing


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    Learn Change and Adapt ?????

    Yes - the old rule of thumb was you need to input half your starting age as a percentage of income - eg 20% at age 40 etc.

    Best to start early - but anyone below age 40/50 is likely struggling to pay Rent/Mortgage.

    Demise of F/S pensions mean most people will be poorish in retirement - unless they own a home outright



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    Owning a home is great but don't forget if a home owner goes into care

    they could lose every penny to fund a care home

    I say buy your home sell it in older age and rent and spend or give your money to loved ones


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    Learn Change and Adapt ?????

    Without being OO at retirement there is a massive rent burden.

    Today only 5% of pensioners are in a Care Home - though 75% of residents are over 75.

    Value of own home is ignored if a Spouse remains in situ.

    Roughly speaking - mortality for the 65 to 75 yr group of pensioners is around 25% - and ditto the 75 to 85 yr group - hence older groups have higher percentage in a Care Home

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    down size in old age and spend the cash and what you don't use give it away

    the rich pass assets down that's why they are rich

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    Learn Change and Adapt ?????

    Depends if you have kids etc to pass wealth to - failing which yes it needs to be spent

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