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Any tax experts in?

VertigoVertigo
edited March 2008 in Chit chat
If I have a private pension that's contracted out of the State Earnings Related Pension Scheme, does that mean I'm entitled to pay reduced rate of National Insurance, as I'm not meant to be paying into the state system?
If not, what's the point of a private pension contracted out of SERPS, exactly?
Should I look at getting a different type of pension?
Cheers.
Post edited by Vertigo on

Comments

  • ÆlitaÆlita
    edited March 2008
    Its only really worth contracting out if you want to pay a decent amount of dosh into your pension..if you're on a crap wage..there is little point.

    NI payments?...not affected.
    I stole it off a space ship.
  • VertigoVertigo
    edited March 2008
    Kaija wrote: »
    Its only really worth contracting out if you want to pay a decent amount of dosh into your pension..if you're on a crap wage..there is little point.

    NI payments?...not affected.
    As I'll only be paying about ?100/m in, I should look at getting a different pension then, yes?
  • milemile
    edited March 2008
    Vertigo wrote: »
    As I'll only be paying about ?100/m in, I should look at getting a different pension then, yes?

    spend the extra 100 notes on crack, you wont live to see 50, so it's worth it. :)
  • dekhdekh
    edited March 2008
    I've all but stopped paying into my pension - all I can see is it's value going down and I'll end up with just enough extra cash each month which will mean I am inelligible for all the benefits someone just on state pension gets.

    I really foo'd up here :(


    I also didn't realise that when you die, and your partner dies. Your pension goes to the provider - or something like that. What a rip. As soon as I can I'm taking as much out of the pension in a lump sum as I can.
  • ÆlitaÆlita
    edited March 2008
    Vertigo wrote: »
    As I'll only be paying about £100/m in, I should look at getting a different pension then, yes?

    Totally pointless then...also, the older you are, the less point there is in contracting out..if your 45+...then it's actually very detrimental.

    To get something approaching a decent pension, you'll need upwards of 300/400 pounds per month.
    I stole it off a space ship.
  • VertigoVertigo
    edited March 2008
    I'd better change it then and go with someone else anyway coz the lot I'm with are a bit lax on the old comms.
    Thanks for the advice.
  • thx1138thx1138
    edited March 2008
    I only contracted back into SERPS last year. D'oh.
  • guesserguesser
    edited March 2008
    stuff your spare cash inside your mattress :)

    tax free savings ftw! :wink:
    My rubbish website including the redrawn Amstrad schematics and the Sinclair Wiki.
  • VertigoVertigo
    edited March 2008
    guesser wrote: »
    stuff your spare cash inside your mattress :)

    tax free savings ftw! :wink:
    Well seeing as we already get taxed once when we earn the bloody thing, I find it highly objectionable that you get taxed again at the other end. Wonder how much of your actual ?1 earnt you do actually get at the end of it all.
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