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Ah, the only flaw in the scheme is one must have money to invest in the first place.
There was an article in the Times business section explaining the pros and cons of this scheme last week, the problem for us older retired people is that the scheme doesn't stack up in later life, it only really makes any sense if you start to put money in before retirement.Having had my ISA reduced along with everyone else s to sweet FA they then had the effrontery to send a letter telling me I only had x days to go to be able to throw more money in their direction that they would condescend to pay 0.25% on, I have been withdrawing it on a regular basis as I refuse to prop up financial institutions at my expense.
@ James: don't worry, they'll have it off us one way or the other.@ Wiggia: It's the inflation-linking that will make it worth while, sooner or later.
Here is as good a description of the top up scheme as I could find.http://www.thisismoney.co.uk/money/pensions/article-3272174/Should-state-pension-worth-upfront-cash.htmlIt is indeed difficult to assess if it will benefit you but it also mentions the pension deferment which in many cases would be a better bet, especially as I seem to remember it could mean you can carry on working past retirement age and defer until you actually stop working, something that is going to happen more now, though of course setting the retirement age at a higher number nullifies much of that as it comes into effect.As with any "insurance scheme, you can guarantee they don't pay out knowing there is a loss at the end, it is there to save money for the government.
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