29 Jul Getting Your Pension? Why Not Buy An Aston Martin!
After the recent details of the government’s new pension laws were released, there was plenty of media clamour that you could now take your hard earned savings and treat yourself to a brand new supercar.
Here at Just Us, we thought we’d put that theory to the test and so after some arduous research, we’ve looked at whether you really can afford a glamorous hunk of metal, carbon and leather in the shape of the brand new, race inspired Aston Martin Vantage N430 Special Edition, with a whopping 4.7 litre, 430 horsepower V8 under the bonnet.
The new government rules on pensions coming into force next year mean that upon retirement, you have access to 100% of your pension pot from age 55.
For this shiny new Aston Martin, you’d be required to put down a £28,000 monthly deposit, along with 23 monthly payments of just £777 over the next two years, working out at another £18,000. After 2 years of coiffing Martinis, wearing tuxedos and outrunning the bad guys (not that we endorse a car chase from, say, HMRC as a part of due diligence), you can choose, should you wish, settle the balance with a final payment of £55,000 and settle into a few years at William Hill.
Alternatively, you can use your tax free lump sum (called your Pension Commencement Lump Sum or PCLS) you can buy it outright, the moment you retire for the bargain price of just £92,300, with change to spare on the obligatory branded luggage and maybe a cushion for those race spec Kevlar seats. So with a pension fund worth £369,200 you can do it with tax free cash.
Given a depreciation curve steeper than cow’s face compared to other purchases, we’re unlikely to be telling you to invest in a brand new Aston Martin any time soon, as much as we all want one. For those whose heart seems unshakeable on living out their James Bond fantasies, just remember that he didn’t have to fork out for his own car, or the retrofitted rocket launchers that come with it.
In the world of James Bond, the taxpayers must have very deep pockets indeed. It must have been bought under a Labour Government. In this world, there is a very real, cynical possibility that these new pension rules are a way of HMRC capitalising tax receipts upfront, rather than drip feeding them through annuity payments. Great for paying off those debts…
When you want to discuss your pension options, give us a call on 0207 562 5767 or pop in and see us at 51 Moorgate. We are happy to chat it through.