Your Opinion

Is obesity really such a big issue in the UK?

YES NO

vote now


View more polls
View Forums
Advertise to the over 50's market for Pensions are no good any more Over 50's join free today Write content for us about Pensions are no good any more Pensions are no good any more - Over 50's Forum Topics

cliver_barwell3.jpg

Pensions are no good any more, are they? 

ISAs are no good anymore, are they?

Sometimes people ask me what I do for a living, and when they do I tell them.  This often results in the ensuing conversation turning to their impression that pensions and/or Individual Savings Accounts (ISAs) are no good anymore.  This sweeping generalisation has the effect of dissuading people from building up their long-term savings using the highly valuable tax breaks available from these products.  This is a shame as we all need to plan for our financial security.

Pensions and ISAs are just savings and investments in a special “tax-wrapper”.  The underlying investments or cash deposits in a pension and an ISA benefit from the same tax advantages.  All income received into these 'tax wrapper' investments, except dividends from company shares, is exempt from Income Tax and all realised profits are exempt from Capital Gains Tax.

Pensions gain from tax relief upon the contributions made, initially at 20%, but the benefits, other than the Pension Commencement Lump Sum (“tax-free cash”), drawn upon retirement, are taxed as income.  ISAs contributions don't attract tax relief, but, conversely, income and/or lump sums can be withdrawn at any time in the future with no personal taxation implications.

So, why have pensions and ISAs gained such a poor reputation?  I believe that it is because of poor investment performance.  Often I have seen the  “tax tail wagging the investment dog”; in other words the adviser's and/or client's focus has been achieving the tax benefits rather than care over the selection and subsequent review of the underlying investments.

Any investment decision should start with a thorough understanding of investment risk and returns and your tolerance to short-term market movements.  Of key importance in this discussion is the length of time your money is likely to remain invested before being called upon.  This will make a difference as to the type of investments you need to consider.

Generally, the most suitable investments considered for long-term arrangements such as pension and ISAs are multi-asset portfolios which are actively managed.  These portfolios give the investment manager considerable scope to seek out good investment returns wherever they may be.  Furthermore the manager is also able  to anticipate and react to changes in the economic and investment climate.   Such arrangements can be tailored to the precise risk profile for any client and at any stage in their personal investment life cycle.

Caution needs to be tailored into any portfolio, particularly within the last 5 years before investments are likely to be withdrawn.  This is where regular reviews with the financial adviser is essential as a gradual move to lower risk investments may be required.

So, in conclusion, with proper advice, pensions and/or ISAs should still be considered as a part of the over-50s financial plan. 

Home

>> Welcome
>> Join FREE
>> Leisure & Lifestyle
>> Travel & Holidays
>> Wealth & Finance
>> Health & Wellbeing
>> Earning & Learning
>> Friendship & Dating
>> Home & Property
>> Meet our Experts

Leisure & Lifestyle

>> Retail Therapy
Buying on Ebay
>> Sports and Events
>> Pastimes and Hobbies
Buying a luxury car
>> Food and Drink
>> Intouch
Mobile Phones
Internet and Broadband
>> Promotions & Discounts

Travel & Holidays

>> Holidays
Trip to Bavaria
>> Hotels
>> Cruising and Sailing
Top 10 Tips
Caribbean Cruise
>> Adventure
>> Places to Visit - UK
>> Grand Days Out
>> Travel Advice and Insurance
Choosing an Escorted Tour
How to Protect your Holiday

Money

>> Financial Planning
What is financial planning
Choosing a Financial Planner
Pensions are no good any more
Inheritance Tax planning
Long Term Care
Equity Market Rally
Managing Income
Make your money work for you
Money Advice
>> Investments
>> Pensions
>> Insurance
>> Mortgages
>> Stocks & Shares
>> Betting & Gaming
>> Latest Money News
Recession & over 50's

Health & Wellbeing

>> Health Insurance
Getting Health Insurance
>> Medical
>> Healthy Living
>> Exercise & Fitness
>> Personal Care
>> Preventive Medicine
Longevity
>> Weight Loss Management
Star Wars & Positive Thinking
10 ways to lose weight
Dieting mistakes
Xmas Stuff the Diet
Break with New Year tradition Stuff the Diet
Over coming slow weightloss
>> Sure as eggs are eggs

Career & Learning

>> Starting Your Own Business
Business Plans A Fast Track Guide
Overcoming Fears in Business
The FACE of an Entrepreneur
The Pitfalls of Starting a Business
How To Set Your Business Fees
Self Employment
>> Franchising
>> Volunteering
>> Personal Development
The Wheel of Life
Procrastination
Keeping yourself safe
Take control of your time
Career Satisfaction
>> Training & Coaching
>> Job Hunting
>> Career Assessment
Myers Briggs Type Indicator
Career Assessment Advice
Strong Interest Inventory
>> Changing Careers over 50
European research project ePAL
>> Careers over 40
>> Redundancy & Unemployment
If you lose your job
Six Stages after Redundancy
>> Writing a CV
How important is your CV
Writing a CV when your over 50
>> Access 1000s Live Vacancies

Friendship & Dating

>> Social Networking
>> Blogs and Forums
>> Personal Safety
>> Dating
Senior Dating
Mature Dating
Mature Dating Sites
>> Family Tree and Genology

Home & Property

>> UK Property
Property UK - Sales
Property UK - Rentals
Property UK - Retirement
Holiday & Second Homes
>> Overseas Property
Living Abroad
Living Abroad in France
Living Aboard Worldwide
>> Living Abroad in Spain
To shop or not
It's who you know
Deciding to buy in Spain
Prime Entrepreneur
Buying in Spain Things to Consider
>> Home Improvements
Interior Decoration

Professional Opinions

About Us

Advertise

Opinion Polls

Forum

>> Members Login
>> Join FREE

Contact Us

Footer Tabs

>> Terms
>> Privacy
>> Links

News

Write for Us

HOME ARTICLES

>> Article One
>> Article Two
>> Article Three
>> BUPAS SPECIALIST
>> Age UK

Somthing to Brighten Your Day

Latest News from P50P

Prime50plus Video