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Likely
21st April 2008, 15:24
What exactly is the difference between a pension fund and a saving account ? I mean in both cases you get what you have saved through the years plus interest.

Churchill
21st April 2008, 15:28
What exactly is the difference between a pension fund and a saving account ? I mean in both cases you get what you have saved through the years plus interest.

Pension funds have a tax-free element.

Dow Jones
21st April 2008, 15:31
Are you from Outer Mongolia?

DimPrawn
21st April 2008, 15:33
Have you heard of Buy To Let? It's similar to a goose wot laid a golden egg.

Xenophon
21st April 2008, 15:34
Have you heard of Buy To Let? It's similar to a goose wot laid a golden egg.

:laugh

Likely
21st April 2008, 15:46
Are you from Outer Mongolia?

What if I am ? Am I going to be discriminated ? I thought this was a free country.

oracleslave
21st April 2008, 15:48
What if I am ?

It might explain why you clearly have no clue about a savings account and a pension in the UK.

HTH.

Churchill
21st April 2008, 15:49
I thought this was a free country.

On that, you're sorely mistaken.

Move along. Nothing to see here.

thunderlizard
21st April 2008, 20:00
What exactly is the difference between a pension fund and a saving account ? I mean in both cases you get what you have saved through the years plus interest.

A savings account gives you what you have saved through the years plus interest.

A pension fund gives you a set income for the rest of your life after a certain point. So if you retire age 65 and die age 66, you get less than you put in. If you die age 100 you get more than you put in.

basshead
21st April 2008, 20:09
What exactly is the difference between a pension fund and a saving account ? I mean in both cases you get what you have saved through the years plus interest.

Let me guess... developer for an IB?

DimPrawn
22nd April 2008, 08:09
Let me guess... developer for an IB?

Ex-developer for an IB I reckon.

Likely
22nd April 2008, 08:27
It's the annuity that does that, the pension fund is just a pot of money before you purchase that...

So there are 2 types of pensions ? Savings-account-like-one-that-also-saves-taxes AND another one - an Annuity one which pays until you are dead.

The annuity one from Norwich states that TAX will be deductive.

http://www.norwichunion.com/annuities/index.htm#table

Churchill
22nd April 2008, 08:28
So there are 2 types of pensions ? Savings-account-like-one-that-also-saves-taxes AND another one - an Annuity one which pays until you are dead.

The annuity one from Norwich states that TAX will be deductive.

http://www.norwichunion.com/annuities/index.htm#table

Tax will be deducted from the annuity that they pay you.

DimPrawn
22nd April 2008, 08:34
So there are 2 types of pensions ? Savings-account-like-one-that-also-saves-taxes AND another one - an Annuity one which pays until you are dead.

The annuity one from Norwich states that TAX will be deductive.

http://www.norwichunion.com/annuities/index.htm#table

Mate, I think you need to book an appointment with one of the guys/girls listed here http://www.moneyweek.com/file/31682/directory-of-fee-only-ifas.html

It's important you understand all the subtle points about pensions, investments, savings.

MrRobin
22nd April 2008, 08:37
So there are 2 types of pensions ? Savings-account-like-one-that-also-saves-taxes AND another one - an Annuity one which pays until you are dead.

The annuity one from Norwich states that TAX will be deductive.


No, you have a pension account or fund which accumulates (tax free) over your working life and then when you retire you buy a pension product, e.g. an annuity, with the money in your fund. The amount you receive each month from the company from which you buy the product is taxed as income just like it were income from employment.

Likely
22nd April 2008, 08:40
Mate, I think you need to book an appointment with one of the guys/girls listed here http://www.moneyweek.com/file/31682/directory-of-fee-only-ifas.html

It's important you understand all the subtle points about pensions, investments, savings.

Thanks. I will be providing for my retirement with either BTL or some Business. If this doesn't work , than in my 50ies :suicide:

Churchill
22nd April 2008, 08:42
Thanks. I will be providing for my retirement with either BTL or some Business. If this doesn't work , than in my 50ies :suicide:

Fuqtard alert!

Not even a decent troll imho.

bobhope
22nd April 2008, 11:09
aghhhhhhhhhhhh

Main differences

1) Interest in a savings account is taxed in the current tax year. You can add / withdraw as you like

2) Interest in a pension fund is not taxed. You can't withdraw it (i.e. buy an annuity/ income drawdown) until later in life. There are maximum amounts you can add.

A pension is a bit of gamble: +ve - you get tax relief; -ve - how will Gordy / future government change the rules?

No wonder IFAs, banks, etc. can rip people off so easily

Dow Jones
22nd April 2008, 11:13
There is one born every day...
Mind you with this level of knowledge, it's like taking candy from a baby...

El_Diablo
22nd April 2008, 14:23
Indeed.

The Severn Bridge is still available... I'll throw in the 2nd Severn Crossing as a bonus... :D

How much Zeity?

Churchill
22nd April 2008, 14:50
£25M and change.

One careful owner...

Never raced or rallied.

Bet you've clocked the bugger though!

El_Diablo
22nd April 2008, 14:53
£25M and change.

One careful owner...

Never raced or rallied.

I'll think about it. :tongue

Likely
22nd April 2008, 15:26
OK , after age of 55 , or whenever u retire , can you withdraw all accumulated pension in one time as a lump sum ? I.E Get it all having saved taxes but accumulated interest ?

Churchill
22nd April 2008, 15:30
OK , after age of 55 , or whenever u retire , can you withdraw all accumulated pension in one time as a lump sum ? I.E Get it all having saved taxes but accumulated interest ?

Oh FFS.

Yes of course you can. You can spend it all on Drugs and Whores, then go cap in hand to the government to support you for the rest of your life.

Whaddya think?

Likely
22nd April 2008, 15:34
Oh FFS.

Yes of course you can. You can spend it all on Drugs and Whores, then go cap in hand to the government to support you for the rest of your life.

Whaddya think?

If you can get it one day as a lump sum without paying taxes, then pensions are suddenly attractive option for saving long-term. I've always thought pensions are for losers..

expat
22nd April 2008, 15:38
If you can get it one day as a lump sum without paying taxes, then pensions are suddenly attractive option for saving long-term. I've always thought pensions are for losers..You don't know squat about them but you "think" they're for losers? What makes you feel that?

MrRobin
22nd April 2008, 15:44
Please don't feed the troll! :throw:

Churchill
22nd April 2008, 15:44
Can you imagine what would happen if "Likely" and "Lucy" bred?

:rollin:

Would their offspring be called "Loosely"?

Likely
22nd April 2008, 15:57
You don't know squat about them but you "think" they're for losers? What makes you feel that?

Because I've always thought all pensions are annuities. Thus you may save 20 years but then you can't be certain how long you are going to live , thus you might have saved more than you will be able to enjoy.

Likely
22nd April 2008, 15:58
Can you imagine what would happen if "Likely" and "Lucy" bred?

:rollin:

Would their offspring be called "Loosely"?

It will be called Luvly.

Churchill
22nd April 2008, 16:02
It will be called Luvly.

It'd be a ******** retard!

MrRobin
22nd April 2008, 16:03
Because I've always thought all pensions are annuities. Thus you may save 20 years but then you can't be certain how long you are going to live , thus you might have saved more than you will be able to enjoy.

Yes, but equally you might enjoy more than you've saved...??

Churchill
22nd April 2008, 16:05
Yes, but equally you might enjoy more than you've saved...??

That's the gamble!!!!

Roll-up Roll-up!!! You pays yer money, you takes your chance!
(And the city wide-boys make a crust either way!)

Likely
22nd April 2008, 16:22
Yes, but equally you might enjoy more than you've saved...??

That's true but , I don't plan living in my 80ies with 2 bags of peanuts per week.

I'd rather have the option to spend it at once , live few years like a GOD ( yachting with women ) and then :suicide:

DimPrawn
22nd April 2008, 17:18
That's true but , I don't plan living in my 80ies with 2 bags of peanuts per week.

I'd rather have the option to spend it at once , live few years like a GOD ( yachting with women ) and then :suicide:

Two bags of peanuts!!!

That must be a final salary pension then.

IR35 Avoider
23rd April 2008, 12:29
Because I've always thought all pensions are annuities. Thus you may save 20 years but then you can't be certain how long you are going to live , thus you might have saved more than you will be able to enjoy.

You've half-understood the issue, but come to the conclusion that's the opposite of the truth. If you don't have an annuity, then you either run out of money before you die, or waste (leave unspent) money by dying before you can spend it. An annuity ensures (in a probablistic sense) that you spend your last pound on the day you die.

For the usual annuity skeptics: I've just finished reading a very interesting article which explains how investing money in volatile assets (shares) to fund regular income needs leads to three different kinds of waste.

http://www.stanford.edu/~wfsharpe/retecon/4percent.pdf