20th March 2013 at 5:34pm
Still one of Britain’s 10 million smokers?
Let’s start with the bad news.
The Chancellor hasn’t changed his mind on tobacco taxes so you’ll be coughing up even more for your cigs.
OK, now for the good news.
Why not use this opportunity to have a proper think about your real life priorities?
Your health first and foremost, of course, but also your wealth.
Let’s suppose you have a twenty-a-day habit.
With a typical price of £7.72* even before the tax increase, that really does start to cost a packet.
Multiply that by 365 days and you’ll get to the eye-watering sum of £ 2,817 a year.
And after 20 years, £56,340 could have gone up in smoke.
By smoking twenty-a-day, after 20 years, £56,340 could have gone up in smoke.
Doesn’t sound good does it?
If you’d put that away in a stocks and shares ISA instead, that’s a good amount to have stashed away each year.
Plus, you’d still be able to put plenty more in if you wanted.
And if you’d put it into a pension, the tax man would have given you tax relief at 20% for a basic rate taxpayer, more if you’re a higher or additional rate payer.
So there you are.
Money going towards your future. And not into an ashtray.
* Typical retail price for pack of 20 cigarettes as shown on Tobacco Manufacturers’ Association website on 20 March 2013
Pensions are a long term commitment As with any investment the value of your fund can go up or down and may be worth less than what was paid in. Laws and tax rules may change in the future. The information here is based on our understanding in September 2012. Your personal circumstances also have an impact on tax treatment.
Every person’s circumstances will be different and require advice. Standard Life accepts no responsibility for advice that may be formulated on the basis of this information.