You are unauthorized to view this page. Username or E-mail Password Remember Me Forgot Password Questions: 00:00:00 - Intro 00:01:43 - Quick question re pensions. I have a defined benefit civil service pension (alpha scheme) and I just wanted to understand that I am looking at things the correct way. I am aware that DB pensions are extremely valuable but over the weekend seen an example which showed it in a different way and it really hit home the benefits of DB scheme. As an example if I earned 40k per year and paid 5.45% pension contribution this would cost me £2,180 per year. Based on my scheme I accrue 2.32% per year meaning based on 40k x 2.32% I would accrue benefit of £928 per year for rest of my life from my selected retirement age at 68. There is also an adjustment rate which is determined each year by the treasury which means the overall pot is adjusted each year to account for inflation. Therefore in effect I am paying only £2,180. to recieve the equivalent of £928 per year in retirement (based on fact the benefit amount is adjusted each year for inflation). Whereas if I was looking to get the same income using the 4% rule as an example in a DC pension, I would need to have capital of £23,200. Is this correct? Seems too good to be true particularly as I also get tax relief on the pension contribution so will cost me less than £2,180 in real terms. Just checking because I knew DB pensions were good - but if I am right in what I say above they are outstanding. 00:04:07 - Please could I ask Pete a question about pension contributions? My partner and I are directors of a UK limited company. We recently opened a Vanguard Personal Pension (SIPP) account. If we pay from our salary/income into the SIPP, we get the 20% tax relief added (Vanguard claims this back on our behalf). However, if we make contributions from the business (using the company debit card/account), it works in a different way. On the Vanguard SIPP website FAQ, it says: "Limited company directors and owners: Make pension contributions from your business account, reducing your corporation tax bill. Company contributions work differently from personal contributions, and Vanguard will not claim any additional tax relief on your behalf as we do with personal contributions. Instead, company pension contributions can be treated as an allowable business expense and may reduce your company’s corporation tax bill. You should speak to your accountant before making any company contributions to your Vanguard Personal Pension." So I emailed my accountant for advice: "I'm trying to work out the most tax-efficient way of paying regular pension contributions from the company into the SIPP. Is there a yearly £'s or % limit on how much we could claim back as an allowable business expense against our Corporation tax bill?" His reply: "Not an expert Simon, it's a question for your pensions person; we're not allowed to advise on this. There is a limit; 40k pa comes to mind but don't quote me on it. There's also probably a restriction based on income, but I don't know if dividends count as income or not." I'd appreciate any guidance or advice from Pete as a financial advisor. 00:11:27 - Hello and thanks for the opportunity to ask questions. Planning for school fees. What are good options for saving (investing existing lump sums and ongoing saving contributions) when planning for school fees. Does an income ladder similar to a pensions approach make sense? This would be for secondary school, two children a few years apart, the first starting in a year or two. 00:13:47 - Could I ask a Q: how safe is the pension - for example, my employer's Aviva BC pension pot worth 100k when I am 60. I made £70k contribution so it become £100k over the years. So is that £100k safe or just £70k safe, I don't think pension is restrict to that £85k rule but I want to know what safe is my pure contribution or including the profit it owned over time thanks. Prev LessonNext Lesson