Savings/investments - what do you do with yours

[Taunton Blue Genie]

I don't know how old you are (age would make a huge difference) but I would have thought paying into a private pension scheme would be the most cost-effective, considering the tax relief you would get on the payments (i.e. an instant 20% growth). I would opt for an income drawdown scheme rather than an annuity. What would you do with the second house - I presume rent it out rather than rely on its resale value?

I have a couple of endowments that are beyond maturity date but I let them run as I didn't need them to pay off the balance of my mortgage, which was their original purpose. However, won't I have to pay tax if I simply transfer them to a drawdown scheme?

[cardiff55]

I have a couple of endowments that are beyond maturity date but I let them run as I didn't need them to pay off the balance of my mortgage, which was their original purpose. However, won't I have to pay tax if I simply transfer them to a drawdown scheme?

Drawdown is for pensions only. The endowments would mature and be totally free of tax in your hands.

[Taunton Blue Genie]

Drawdown is for pensions only. The endowments would mature and be totally free of tax in your hands.

Good lord. Many thanks, old fruit.

[Gofer Blue]

I have a couple of endowments that are beyond maturity date but I let them run as I didn't need them to pay off the balance of my mortgage, which was their original purpose. However, won't I have to pay tax if I simply transfer them to a drawdown scheme?

No, I don't see any reason why you should pay tax on these. Just cash them in and start a pension fund. See my reply to Delmbox as above.

[Taunton Blue Genie]

No, I don't see any reason why you should pay tax on these. Just cash them in and start a pension fund. See my reply to Delmbox as above.

Is a pension fund the best thing if I am already 63 and semi-retired?

[Bluebina]

Is a pension fund the best thing if I am already 63 and semi-retired?

You still could do one, but it's designed for medium to long term savings, still more tax efficient than a S&S ISA. If your in receipt of a pension you are limited to 100% of your income or £4K per tax year whichever is lower. You would still qualify for tax relief.