Quote:
Originally Posted by PKFFW
The problem is that all the money is still taxed, just at a lesser tax rate. All money going in is taxed at 15% instead of whatever normal tax rate you are meant to pay based on how much you earn. It is a benefit but not a real lot.
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Private pension schemes here in the UK are enormously beneficial in that the contributions are tax free. That means that, if you're a "higher rate" income tax payer, for each £1 you pay into the fund, the government pays in another 40p on your behalf. It doesn't get much better than that!