Providing for the future
Sir: In a recent issue (September 22) John Gaselee drew attention to various Ways in which one can ensure an income on retirement. In the many sChemes advertised by insurance and finance companies, no mention is made however of the fact that the eventual ,annuity paid on retirement is taxed 4.7 Per cent at source. Thus, if you are expecting £100 per month, you finally end up with a little over £60. The explanation for this is that it is unearned income. For those whose income has always been earned and not derived from Inherited wealth or investments and whose employers have provided for ,.,the,M by the purchase of an insurance ".°'IcY producing an annuity, it is a little hard to be classed with the idle rich and taxed accordingly.
S. John Peskett Orchard House, Peasmarsh, Sussex
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