Ok , as I said, why the pensions "scam"?

I would like to answer Colin S. 1st, you get full tax relief on interest-only buy-to-let mortgages, so reducing your tax liability. your 2nd point, you said, "A lump sum is possible if you die before retirement". What happens if I die 1 or 2 days or weeks after I have retired?, you've guessed it, it's ALL gone, not 1p left, as an inheritance. And now I will use your very annoying no-it-all sayings.


Oh,and owning a buy-to-let interest-only mortgaged property, 1 example, Interest only mortgage of £38,3k costs £184 per month tax deductable,+ £14.86 per month Buildings Ins. Costs are then £200 per month. The property is currently rented at £375 per month. An income of £175 p.c.m -tax, still an income. The current High Street valuation is around £95k In 15 years time still owing will be £38,3k. Can you find me a pension plan that pays me an income now (I am 50) then when I die, my son will still own properties if he wants to? Please get in touch I would love to know!!

Ok , as I said, why the pensions "scam"?
Hi





Thanks for your reply - to be clear on point 1 you don't get full tax relief - only on that rental income which is not offset against mortgage interest and other expenditure (but I do take your point completely).





Point 2 - if you draw an income form your pension fund (not an annuity) the fund is available to your heirs less 35% tax charge - but you are right, if you do not select a spousal reversionary income from your annuity, then the fund is lost - unless you choose a capital guaranteed annuity (costly though). After age 75 you can still draw an income via 'alternatively secured pension' but the tax charge on death jumps to 70% if there is no surviving spouse.





Sorry if I offended you, but I believe pensions should form the basis of any retirement planning (afterall many of us want the surity of income in retirement). No investment comes without risks, and indeed buy-to-lets are risky too.





Anyway each to their own.