Understanding a Pension

[Gordon Gekko]

In fact, the tax on the income in retirement could be 40% PAYE + 4% USC. So unlikely to be a very tax-effective strategy.

40% relief on the way in, 25 years of tax-free growth, and 44% tax on the way out?

I’ll take that every time, thanks.

 

[Live Well]

Thinking back on what you said Gordon Gekko. If the person has already maxed "the age-related percentage limit for tax relief on pension contributions" are they still better off using a pension product as they don't get charged for the growth (No deemed disposal rule?) so they only get taxed with the 44% on the way out after 25 years?

 

[Gordon Gekko]

Thinking back on what you said Gordon Gekko. If the person has already maxed "the age-related percentage limit for tax relief on pension contributions" are they still better off using a pension product as they don't get charged for the growth (No deemed disposal rule?) so they only get taxed with the 44% on the way out after 25 years?

I can’t see how they would be better off versus investing in their own personal name.