There's so much confusion in this thread that it is no wonder that people don't actively look to save into a pension as part of their retirement.
I have a vested interest - I work for a SIPP provider - SIPPs are normal personal pensions that aim to give you more control and flexibility over what you invest in and how you take the benefits out.
People have mentioned 'losing control' and 'locking the money away'. That isn't really true. Firstly, you should be aware that there is absolutely no need to have to buy an annuity when you retire or at age 75. The age 75 rule is already gone, moved to age 77 and by April 2011 age 77 will also be removed. So you never have to buy an annuity.
The alternatives, still being consulted on, are flexible and capped drawdown. Both give you flexible means to access your retirement funds, AND stay invested.
Tax relief on contributions is now valid up to £50,000 a year, and with the new carry forward rules, you can contribute up to 4 times this amount in one go - great for high earners who haven't started planning, especially those who have high earnings in the 50% tax bracket.
Balance is really important. There are good new ISA allowances, and sensible people will be doing both pension and ISA.
Finally, several people have mentioned property. Property isn't just houses - there are many other types of commercial property, often more affordable than residential, and commercial property is an permitted pension investment. Invest in that through your SIPP and get 20% / 40% / 50% tax relief depending on your circumstances, no tax on rental income and no CGT on disposal. Awesome deal.
But above all, speak to a decent IFA to get some decent advice for your position. Search on IFP or on Unbiased for a good local one.
I have a vested interest - I work for a SIPP provider - SIPPs are normal personal pensions that aim to give you more control and flexibility over what you invest in and how you take the benefits out.
People have mentioned 'losing control' and 'locking the money away'. That isn't really true. Firstly, you should be aware that there is absolutely no need to have to buy an annuity when you retire or at age 75. The age 75 rule is already gone, moved to age 77 and by April 2011 age 77 will also be removed. So you never have to buy an annuity.
The alternatives, still being consulted on, are flexible and capped drawdown. Both give you flexible means to access your retirement funds, AND stay invested.
Tax relief on contributions is now valid up to £50,000 a year, and with the new carry forward rules, you can contribute up to 4 times this amount in one go - great for high earners who haven't started planning, especially those who have high earnings in the 50% tax bracket.
Balance is really important. There are good new ISA allowances, and sensible people will be doing both pension and ISA.
Finally, several people have mentioned property. Property isn't just houses - there are many other types of commercial property, often more affordable than residential, and commercial property is an permitted pension investment. Invest in that through your SIPP and get 20% / 40% / 50% tax relief depending on your circumstances, no tax on rental income and no CGT on disposal. Awesome deal.
But above all, speak to a decent IFA to get some decent advice for your position. Search on IFP or on Unbiased for a good local one.