X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Tax

    Is 59 too late to start a pension?

    Hi

    I'm 59 and don't have a pension. I bought properties in a limited company and in my own name over the last 14 years to act as a pension but now with section 24 I have to look elsewhere.

    If its not to late can anyone recommend someone to talk to about pensions.

    0
    0

    If I am perfectly honest I would say that 59 is far too late to provision a pension. However it is not too late to gain the tax advantages of setting one up, you just may not have the time to amass the money that you would have been able to, had you of started it 20 years earlier.

    So depending on your financial situation it may be worth doing regardless, let me explain:

    • If you have lots of disposable income and lump sums, you can use them to attract any tax relief available to you this will potentially increase your contribution by 20% to 40% depending on your marginal rate. Also any money in the fund will grow tax free.
    • If you don't have a decent level of disposable income or lump sums then you will accumulate whatever you have when you get to retirement, it will be the sum total of your deposits plus the tax relief and some growth. Once this is reduced to an annuity (income in retirement) you could be possibly looking at around 5p in the pound. As a result you might of found that you would have been better looking at ISAs rather than pensions, at least this way you can access all of the fund when you need it so therefore will offer you greater flexibility in the short time that you have to plan.

    This is clearly why a qualified adviser is necessary to find one you can go to unbiased.co.uk. Hope this helps.

    0
    0

    Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk


    Hi I am  little bit lost with your Blog

    you say you have purchased property in a LTD Co and you say you are effected by S24

    I don't understand why S24 would effect me or have I missed something

    Can you please give me a little more income so I can make further comments on the pension angle

    0
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    DL,  I read it to mean some in LTD and some in their own name personally. In which case there could be an issue.

    0
    0

    Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk

    Lets see what they come back with

    Both sanarios can use a pension but in different ways

    are they working ect

    we need a bit more info to try and give a view

    0
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I agree more information is necessary but that said if the money isn't there it might be a futile exercise.

    0
    0

    Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk

    I would agree with you I remember a very OLD IFA saying pensions help the rich more than any other sector and that was in the 80s

    Today with pension Freedom they are even better for the wealthy  

    you need the money to start with

    0
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    One particular feature of the pension system seems designed to help the relatively poor. Non-taxpayers can get tax relief.  Assuming that someone has no qualifying income they can still put up to £3,600 into a pension. If they pay in £2,880 that will be made up to £3,600 by tax relief even if they are not paying any tax.


    0
    0

    There is a catch to that Peter

    The Govt are not stupid ?? the low paid are now in Pension Plans which on the face of it looks good

    I worked for a service Charity and we did a lot of training on welfair aand benefits system and the subject of pensions was covered

    we worked out at the time how much income a pensioner would have if they had no pension climing rent rebate pension credit ect and how much they would have to live on

    then we looked at a person who had a small pension and the effect it would have stopping rent rebate ect

    we worked out that a person with a pension would need around 175k in a pension fund to make the costs of rent rebates pension credit ect

    they can end up being a bad thing for low paid workers

    The Rich fund pensions to the Max now and get all the Tax Brakes

    I know that as a fact I am one of them

    My pensions will be used for IHT planning and a great help to avoid S24

    You can save up to 40k a year and give it to your grandchildren avoiding all IHT

    Its a rich persons planning tool


    0
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Yes building a small pension pot might not be worth it, but someone who is over 55 who has £2880 to spare could put it in a pension, and after tax relief has been paid take out £3600.. If they are not a tax payer that is effectively free money. There are cheap  schemes around though they may want you to leave a small amount in.

    0
    0

    DL

    We have three times as many properties in our own names as in the limited company. When we started out 14 years a go we only bought in the limited company then found out it was better tax wise to buy in our own names. My partner in life and in business is 66 and is already claiming 3 pensions

    0
    0