[Wiki][UK] Personal pensions page finally fleshed out -- comments?

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
TedSwippet
Posts: 2582
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

[Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by TedSwippet » Tue Jul 23, 2019 9:25 am

The UK Personal Pensions wiki page has been largely devoid of text for most of its existence. Up to the day before yesterday, it looked like this:

https://www.bogleheads.org/w/index.php? ... ldid=66362

I have now (finally!) got round to trying to flesh it out with a description of the quagmire that is the current UK pension saving framework. Pension simplification in 2006 has resulted, predictably, in a laughably complex set of rules, limits, and tax traps, but I think I've caught most of them. The latest version is here:

https://www.bogleheads.org/wiki/Personal_Pensions

If you have suggestions for improvements to the page (whether or not you're from the UK), or if you spot anything missing, wrong, misleading, etc., please let me know. (Or, of course, just edit the corrections in yourself :-) )

Still to do:
  • Add a whole heap of citations, references, and links to back up the text and assertions made.
  • Improve cosmetics, put warning boxes around tax traps.
  • Better examples of effective tax rates, covering more combinations of tax bracket on contribution and on withdrawal; maybe a table.
  • Show (tabulate) the history of the lifetime allowance (and its reductions) over time.
  • More detail on auto-enrolment.
  • A new page on defined benefit pensions. (I'm entirely unqualified to write this, never having had one. Any volunteers?!)

steveyg50
Posts: 35
Joined: Tue Jul 09, 2019 6:35 pm

Re: [Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by steveyg50 » Tue Jul 23, 2019 1:25 pm

Good work!

One thing - could be me being dumb, but in the allowance section it didn't seem you had explained clearly that the general rule is that you can only contribute up to 100 per cent of your earnings. (and get tax relief). BTW I assume this is gross earnings?

Topic Author
TedSwippet
Posts: 2582
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: [Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by TedSwippet » Tue Jul 23, 2019 3:03 pm

steveyg50 wrote:
Tue Jul 23, 2019 1:25 pm
... in the allowance section it didn't seem you had explained clearly that the general rule is that you can only contribute up to 100 per cent of your earnings. (and get tax relief).
Thanks for the note. It's sort-of there implicitly, but making it explicit will be clearer. Added to the TODO list, then.

DJN
Posts: 529
Joined: Mon Nov 20, 2017 12:30 am

Re: [Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by DJN » Tue Jul 23, 2019 10:20 pm

Hi Ted,
this is really great work and thanks for taking the time.
A suggestion from someone who has two UK pensions and who has also cashed a defined benefit pension out!

Would this section be the right place to include some information on QROPs or whatever it is now called? Perhaps a new separate page later? Apologies for suggesting more work!
DJN
Yah shure

Topic Author
TedSwippet
Posts: 2582
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: [Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by TedSwippet » Wed Jul 24, 2019 2:36 am

DJN wrote:
Tue Jul 23, 2019 10:20 pm
Would this section be the right place to include some information on QROPs or whatever it is now called? Perhaps a new separate page later?
Good thinking. Thanks for the suggestion. I'll add a brief section on QROPS.

It might justify a whole (pan-EU?) page to itself, but I'm definitely not qualified to write that.

ralphjones
Posts: 66
Joined: Tue Nov 13, 2007 6:45 am

Re: [Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by ralphjones » Wed Jul 24, 2019 4:47 am

Worth adding the 'age75' rule?

from the web
'With this type of pension you can pass on your pension, normally tax free if you die before age 75. After age 75, your beneficiaries pay tax at their highest income tax rate.'

Topic Author
TedSwippet
Posts: 2582
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: [Wiki][UK] Personal pensions page finally fleshed out -- comments?

Post by TedSwippet » Wed Jul 24, 2019 6:02 am

ralphjones wrote:
Wed Jul 24, 2019 4:47 am
Worth adding the 'age75' rule?
Will do. Thanks.

Post Reply