Anyone thinking a £3k return on £12k over 20-40 years is a good return is kidding themselves. I'd rather spend the £12k than wait that long to get £3k.
It's not that bad. It's own year. Plus it will be paid in and enshrined in law. Just as current isa are.
Fair enough I could do a second pension. Fine. But still. I'd advise anyone under 40 to get saving as it's still risk free savings with top up.
Money you can't spend if you already own a home, and can't access until you're 60, which gives a lesser return than a pension, and with 'top up' less than the tax relief and you're still saying its something people should do as long term savings plan? Barking
Mito must work for the government unless he is a tory supporter and trying to put a ****ing cherry on top of a turd.
Having read a little more on this I know realise there are two schemes here; home savers and life savers (or similar type names). The homes savers is limited to £200pcm and £12k in total plus the 25% government contribution. The life savers is limited to £4k per annum (don't know if you can put more in and just not get the 25% on any extra?) and there is no limit on how much you put in over time. The only limit is up to 50yrs of age. You can't start this scheme if you're over 40 either. The second scheme can't be drawn out unless you suffer a critical illness, you reach 60 or you use it to buy a house. Makes the first scheme fairly pointless considering you can still buy a house. Of course, there is a loop hole for gaining access between 50-60 years of age; you can opt to move house and use the savings to do so.
its not that much money and a useful diversification on what is a risk free investment with a 25% return. its 4k per annum savings with a 1k top up and you can so that much (or less) every year and get topped up... you can put in 50k if you want but get a max of 1k form government. so bascially 4k is beyond most of us at 333 per month but say you stick 50 a month away at oh i dunno 27 like IBWT... 50x12 =600 quid. + 240 from the tories. = 840. now add tobes 1.43% call it 850 pound. now compound that out over 33 years... just as a little savings... you'll end up with 36k savings approx over the period... if you just saved the 50 in a bank acocunt getting same return... 22k. now.... I ge tthe point tobes i making sure i do. Its a good point. but.... if you need to access the money, you can buy a house or get sick etc... its there. this is not a bad scheme IMO.. sorry but if its only seen as a retirement scheme fine have your pension or a second pension and get pre tax return but do you get my point about putting away something you won't even miss? It makes sense... even £50 or how about you put away the £77 you were going to spend on a ticket at anfield save £77 per month and you'd have the guys of 48k when you turn 60. fine put the moeny in your pension if you want but I'm doing that already and see no harm snagging a bit of extra dosh off the tories.
£77pcm is £1,155 per annum including the Governments 25%. It would take 41.5 years to get to £48k which is impossible since you can't pay into it if you're over 50yrs old. If you start paying in at 16yrs old, the maximum number of years you can do it is 34yrs meaning the £1,155 would equate to £39,270 (plus any interest too)
thanks for the info. this is why talking baout it is good. I'll have to have a goo again so. still better than under your bed or in a bank account in these days interest rates but not as good a return if you can't keep paying in
Basically means you can't touch it for ten years between 5- and 60 years old unless you take ill or buy a house.
