From: "eclipse" 
Newsgroups: uk.finance
Subject: Re: Dumb pension question
Date: Sun, 1 Apr 2007 10:39:06 +0100


"Daytona"  wrote in message 
news:1j1t03dv7puhieeadvn62ot9qv5kbc23s7@4ax.com...
> On Sat, 31 Mar 2007 14:32:52 +0100, "eclipse"
>  wrote:
>
>>Its not that much better a deal than an ISA - which is something I seem to
>>remember reading on this newsgroup.
>
> You're correct in your analysis. I wasn't being funny - just wondering
> if it was something other than the tax in/out issue.

I know you weren't being funny - but your question was abiguous and I might 
have been wasting everyones time.

> Glad you've got your head around it, at least you understand the issue
> when the majority probably don't.

I think the SIPP idea is very clever and it contains just enough potential 
but minor advantages to make it just worth while.
After all maybe one will be so poor in retirement that the tax IS avoided. 
Perhaps the small percentage advantage will pay
for some of the managment charges and increasing the total fund by 
"borrowing" the tax does help get a better total return by
increasing the interest earned (roughly P% to 1.25P% i.e about 1% extra per 
annum).

What I can't fathom is whether there are any more subtle advantage to it 
such as inheritance.
If I put some money in a SIPP then my next of kin get it and can keep it as 
a SIPP - is this an advantage or is there
a catch I'm missing. Is this a way of creating an inheritable pension?
mikej


> Daytona