Despite the current (May 2002) annuity interest rates, pensions are still one of the best income producing areas that you can invest in. With the advent of low cost 'stakeholder' plans even retired people can get good rates of tax relief.
Find out why Pensions ARE STILL one of the most efficient ways to produce an income.
Pension - An obvious winner?
A Guaranteed 15% Per Annum Yield for Life!!!
|
Day One |
Day Two |
|
Pension paid |
£10,000 (gross) |
Retirement fund value |
£10,000 |
|
Tax relief at 40% |
£4,000 |
Tax free cash taken
(available) |
£2,500 |
|
Net Cost |
£6,000 |
*Remaining fund £7,500 yielding say 7% = £525 per annum
Actual cost of £10,000 investment = £3,500
This equates to 15% yield per annum on net investment.
*Assume annuity rate for 65 year old, level basis, single life. Assumes no growth in fund and client 40% taxpayer (March 2002).
If you would like to discuss your pension provision please
contact us
.
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