pension wealth

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pinkymp

Senior Member
England, English
does anyone know what this terms means?

I've searched online, and, although there are many hits, none actually explain what it means. Until I fully understand it in English I will struggle to translate it to French.
My sentence is,
"this means that the same amount of private pension saving would achieve a larger amount of pension wealth"

thanks x
 
  • ewie

    Senior Member
    English English
    Pension A: you pay in [save] £1000 a year to your pension fund. When you retire your pension is worth £25 a year.
    Pension B: you pay in [save] £1000 a year to your pension fund. When you retire your pension is worth £250 a year.
    "this means that the same amount of private pension saving would achieve a larger amount of pension wealth"


    Or am I missing something too?
     

    Lis48

    Senior Member
    English - British
    The pension wealth means the total amount in the pension fund at the intended date of retirement out of which the pension company buys an annuity to provide you with a fixed annual income for life. There have been various government schemes aimed at increasing this final pot of money (essentially so that the retired can draw less on state benefits) without making people pay higher contributions. They focus on tax relief schemes where you pay regularly in to your pension but the government add to it the tax you would have paid on the contributions. So in effect you are increasing your pot of money without it directly hurting your pocket. But we all still pay extra tax!
     
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