Two pension schemes?


T

Ted

My son is in a private pension scheme and has recently joined his company
pension scheme. Is he allowed to do this and what would be the best way of
rationalising them if necessary. I would think cancelling the private
scheme? Thanks for any advice/ comments.
 
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J

Johnboy

My son is in a private pension scheme and has recently joined his
company pension scheme. Is he allowed to do this and what would be the
best way of rationalising them if necessary. I would think cancelling
the private scheme? Thanks for any advice/ comments.
There are no rules against belonging to multiple pension schemes. In fact
its probably the best thing to diversify your pension provisions. e.g. As
you probably know, you can have an occupational pension and a state
pension.

There are rules around how much you can contribute to a pension scheme.
If memory serves, this year its up to £50,000 per year, and a lifetime
limit to the pension pot of £1.8M
 
F

Flop

There are no rules against belonging to multiple pension schemes. In fact
its probably the best thing to diversify your pension provisions. e.g. As
you probably know, you can have an occupational pension and a state
pension.

There are rules around how much you can contribute to a pension scheme.
If memory serves, this year its up to £50,000 per year, and a lifetime
limit to the pension pot of £1.8M
and....

http://www.dailymail.co.uk/news/art...ion-pot-thought-fat-cats-gone-youd-wrong.html

seems to disagree.

But it is the DM

Flop
 
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J

Johnboy

They are limits on what gets tax concessions, not absolute limits.
Yesss, but... when ordinary mortals (ie not bankers) talk about pensions
they mean the government concession scheme that has a tax advantage.

Saving in a pension pot beyond the maximum tax free level makes no sense
financially - far better to save in normal investment vehicles, such as
savings accounts, gold bricks, fast cars, fine wine, bricks and mortar,
or whatever you fancy. The saved money is yours to pass on to your
estate / Battersea dogs home / HMRC or whoever you choose in your Will,
or spend whoever you like at any time.

The banker in the DM is on a fantastic final salary pension. As far as
ordinary mortals are concerned, this is an "indexed linked copper
guaranteed bottomed salary for life". I doubt this was what the OP was
asking about. The DM has calculated an equivalent figure for the cash pot
which would generate such a Croesus-like "pension" and come up with 13M-
odd. The lucky banker did not receive 13M-odd in cash as a pension, he
got a fat-cat salary for life. He gets the equivalent of a Lotto win
every year, for life, and no wonder he's smiling in the DM photo!
 

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