Pension Choice

[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.