Pension Choice

[RobMCFC]

That vision looks a way off reality as things stand but if my NIO shares finally take off then I might be in luck!

Now that is a pipe dream!

I bought a few based on the giddiness in here - I must have bought at the peak $48.

Not moaning - I invested £1400 in total across a few shares. money I could afford to lose - and they're currently worth about £700 !

 

[M18CTID]

Now that is a pipe dream!

I bought a few based on the giddiness in here - I must have bought at the peak $48.

Not moaning - I invested £1400 in total across a few shares. money I could afford to lose - and they're currently worth about £700 !

The peak was around 66$ I think so you never know. In many ways, it's still a fledgling company with huge potential for growth.

My average buying price is around 42$. I daren't tell you how many I bought!

 

[mancityvstoke]

I bought some Deliveroo when they floated


what a mistake that was

 

[The Light Was Yellow Sir]

I bought some Deliveroo when they floated


what a mistake that was

Perhaps they‘ll start to deliver to ships…….

 

[mancityvstoke]

Perhaps they‘ll start to deliver to ships…….

That sunk a bit....bit like their fucking shares

 

[manclad]

You are correct about the 25% tax-free.

However, you can then leave the other 75% invested and "draw-down" what you need each year.
So, for example, you could take out £10K a year and it will all be tax-free (providing you don't have any other income or state pension).

The theory is that you can take what you need to top up your state pension and whilst leaving it invested, it will last a lot longer than handing over all your money and buying an annual pension.

FWIW, I agree with you paying your debts first.

My view is that people have had it drummed into them to save, save, save for your pension without considering that you will need way less money in retirement than you do now (whilst paying a mortgage, paying for family holidays etc.) This is why I prefer the balanced approach of putting a small amount in your pension whilst making sure you do the big things now (whilst you are fit, able and have all your marbles!)

That's exactly what I did for 3 years until I started getting my state pension 3 months ago.
I was taking £1,000 per month, but now I have a state pension of £825 per month, I am only taking £550 per month from my personal pension.
It's now projected to last me until I'm 96 years old,which will probably see me off.
It also means that my wife can retire in 3 months (age 64.5 years) and we can live very comfortably until she gets a similar state pension in 18 months time.

 

[mancityvstoke]

That's exactly what I did for 3 years until I started getting my state pension 3 months ago.
I was taking £1,000 per month, but now I have a state pension of £825 per month, I am only taking £550 per month from my personal pension.
It's now projected to last me until I'm 96 years old,which will probably see me off.
It also means that my wife can retire in 3 months (age 64.5 years) and we can live very comfortably until she gets a similar state pension in 18 months time.

With the lifestyles we've had mate ....96? Spend it quick ;)

 

[RobMCFC]

That's exactly what I did for 3 years until I started getting my state pension 3 months ago.
I was taking £1,000 per month, but now I have a state pension of £825 per month, I am only taking £550 per month from my personal pension.
It's now projected to last me until I'm 96 years old,which will probably see me off.
It also means that my wife can retire in 3 months (age 64.5 years) and we can live very comfortably until she gets a similar state pension in 18 months time.

That's the kind of figures I'm thinking about. I'm 54 now and am looking to retire any time between 62-65 depending on how the figures are looking

Looks like you'll have about £10K state pension each with an extra £6k or so to top it up. Sensible figures for which you probably haven't had to shove too much in over your working life.

 

[manclad]

That's the kind of figures I'm thinking about. I'm 54 now and am looking to retire any time between 62-65 depending on how the figures are looking

Looks like you'll have about £10K state pension each with an extra £6k or so to top it up. Sensible figures for which you probably haven't had to shove too much in over your working life.

Great post.
My state pension is £9,919 at this moment in time,with maybe another 10% on top from next April.
The wife is about £20 per month less ( much to her chagrin) but I paid more into SERPS than her.
It will give us somewhere between £2300/2500 per month, which is plenty for our lifestyle.
And don't forget half price season card,free public transport and £200-500 to pay our winter gas bill.

 

[bluemoon32]

Im 55 in December & looking to do the following so that i can help my Children with deposits etc, anyone know the tax implications of the below ?
I have an appointment with the pension advisor next week but just wanted to see if what i think is correct, actually is.

Salary - 33k
Pension 1 has 18k in it.
Cash in pension 1 =18k, 25% is tax free
Pension 2 has 100k in it.
Take 25% of pension 2

Thanks for any help

 

[Mr Kobayashi]

Perhaps they‘ll start to deliver to ships…….

They will never make a profit unless they have a monopoly.

 

[manclad]

Im 55 in December & looking to do the following so that i can help my Children with deposits etc, anyone know the tax implications of the below ?
I have an appointment with the pension advisor next week but just wanted to see if what i think is correct, actually is.

Salary - 33k
Pension 1 has 18k in it.
Cash in pension 1 =18k, 25% is tax free
Pension 2 has 100k in it.
Take 25% of pension 2

Thanks for any help

I'm no financial advisor,but as far as I know you can start taking from a pension pot at age 55 ( although that is going up to 57 in the near future to keep things aligned with the increase in state pension age to 67).
And you are allowed to take 25% tax free ( so £25,000 of the £100,000 pot you mention).
The only thing to bear in mind is that you will have a much smaller monthly pension when you decide to take it,and that monthly amount will be eroded further by the current high annual inflation rates.

 

[Millwallawayveteran1988]

Im 55 in December & looking to do the following so that i can help my Children with deposits etc, anyone know the tax implications of the below ?
I have an appointment with the pension advisor next week but just wanted to see if what i think is correct, actually is.

Salary - 33k
Pension 1 has 18k in it.
Cash in pension 1 =18k, 25% is tax free
Pension 2 has 100k in it.
Take 25% of pension 2

Thanks for any help

Pension one could be taxed at emergency rates meaning you have to claim back some tax. Do you plan to continue paying into a pension via work? If so, you need to be careful with how you take pot one as you could trigger the MPAA which will limit contributions to £4k going forward. You might want to ask the provider of pot 1 if they will pay it as two “small pots” as that won’t trigger the above as long as both under £10k and is unlikely to attract emergency tax.

Tax when you get a pension

Income Tax on payments from pensions, tax-free allowances, how you pay tax on pensions.

www.gov.uk

 

[Kompany Car]

Pension one could be taxed at emergency rates meaning you have to claim back some tax. Do you plan to continue paying into a pension via work? If so, you need to be careful with how you take pot one as you could trigger the MPAA which will limit contributions to £4k going forward. You might want to ask the provider of pot 1 if they will pay it as two “small pots” as that won’t trigger the above as long as both under £10k and is unlikely to attract emergency tax.

Tax when you get a pension

Income Tax on payments from pensions, tax-free allowances, how you pay tax on pensions.

www.gov.uk

Just bumping this …
Is it correct that you can take a lump sum alone and assuming that you don’t drawdown on the remaining 75% it doesn’t trigger the MPAA limit ?

 

[Millwallawayveteran1988]

Just bumping this …
Is it correct that you can take a lump sum alone and assuming that you don’t drawdown on the remaining 75% it doesn’t trigger the MPAA limit ?

You can take the tax free cash without triggering MPAA.

Money Purchase Annual Allowance (MPAA) | MoneyHelper

There are certain situations where you might trigger the Money Purchase Annual Allowance (MPAA). Discover what the MPAA is and how it works in this guide.

www.moneyhelper.org.uk

 

[BlueMonkey79]

Just after some info.

I managed to trace some old pensions back when I was 16 and then put a few pensions from other more recent employers into one pot. I used pension bee who did all the chasing around for me.

There is only 14k in there. Is there any way I could have this now and pay tax on it or whatever or do I have to wait until 55/57 or 67 (at the minute).

Cheers

 

[denislawsbackheel]

Just after some info.

I managed to trace some old pensions back when I was 16 and then put a few pensions from other more recent employers into one pot. I used pension bee who did all the chasing around for me.

There is only 14k in there. Is there any way I could have this now and pay tax on it or whatever or do I have to wait until 55/57 or 67 (at the minute).

Cheers

Early pension release rules | PensionBee

Find out what early pension release is and the rules and consequences of withdrawing money from your pension before the age of 55.

www.pensionbee.com

 

[CarlosTevez'sEnglishTutor]

Hi all, I've got a workplace pension question that somebody more clued up than me might be able to give advice on.

I pay 4% of my salary into a pension, actually 5% as I get 20% tax relief. My employer contribute 5% also.

Is it worth me increasing my contribution to around 10% or more?

Thanks

 

[Blue Maverick]

Hi all, I've got a workplace pension question that somebody more clued up than me might be able to give advice on.

I pay 4% of my salary into a pension, actually 5% as I get 20% tax relief. My employer contribute 5% also.

Is it worth me increasing my contribution to around 10% or more?

Thanks

The more you can put in the better especially if your employer matches it, if you’re not going to miss it, do it.

 

[denislawsbackheel]

Hi all, I've got a workplace pension question that somebody more clued up than me might be able to give advice on.

I pay 4% of my salary into a pension, actually 5% as I get 20% tax relief. My employer contribute 5% also.

Is it worth me increasing my contribution to around 10% or more?

Thanks

Check out its performance.
You may be better opening a second pension, perhaps even a SIPP.