Are we too old to start a pension plan?
My wife & I are aged 50 & 53. Recently we were offered a stakeholder/ISA pension plan that starts with a lump sum investment of £2028, then continues with a monthly investment of £65. If we keep this up for 10 years we get a tax free lump sum of £4000 & an index linked taxable monthly income of £32, if 15 years £6770 lump plus £63 monthly. This is meant to be more tax efficient.
Instead we could just put the money into a savings account at 5% & pay tax on the interest.
According to my spreadsheet, we’d still be better off in 30 years by putting the money into the savings account & paying tax. Are we just too old to start a pension scheme, or are the stakeholder & ISA arrangements not as good as they seem?
You are not too old to start a pension plan but I would urge you to seek advice from an INDEPENDENT financial adviser on this.