- Joined
- 31 May 2016
- Messages
- 17,418
- Reaction score
- 2,644
- Country
I'm a bit younger than you, but I'm curious as mine says in 2038. Your forecast is £179.60 a week. I guess I'm contracted out at some point.
I'm a bit younger than you, but I'm curious as mine says in 2038. Your forecast is £179.60 a week. I guess I'm contracted out at some point.
Sponsored Links
B
Bodd
Yes mine says that too. Should I be voting Labour at the next election
B
Bodd
I thought it was just a 1 off
I’m not sure but as far as I know, until you buy an annuity with it, you can take what you like from it but may have to pay tax on it. If, for example, you weren’t working, I think you could take up to your personal limit without paying tax. Again, check first as I might be talking out of my a hole!
Sponsored Links
worth metioning
if you are on any benefits like unemployment councul tax or housing any lump sum you can get your hands on as in not invested abouve something like 6k to 16k will effect your benefits with an assumed something like 5% interest gained at say 6k and and no benefits help above say 16k untill your saving drop below that amount
Mottie, I'm sure you know, but for others... you can just have it all in a oner. But after 25% it's taxed. You're free to have the lot and spend it in one day. Choices eh? I think you are correct about £12.5k per year if it's your only income, too.
only the first 25% is tax free. It is not a yearly allowance.
Subsequent payments are taxed according to your band.
I don't know the current (inaccurately) so-called flat-rate pension, but if it is, say £175 a week, you could take £3470 a year from your private pension and still be inside your personal tax-free allowance of £12,570
or if you are not yet drawing a pension and have no other taxable income, you could draw £12,570 and pay no tax
which is not a lot
you do not ever have to buy an annuity, and it might not be a good choice.
Apart from income drawdown, you could instead take Partial Encashments. Each of which can be tax free up to 25%, provided you have not already taken your 25% lump sum.
So you could take a £10,000 encashment this year, and pay tax on £7,500 of it
And next year a £20,000 encashment, and pay tax on £15,000 of it
if you know you have a large expense coming up (retirement cottage, new engines for the yacht) it is better to take it out over two or more tax years if you can keep below the higher-rate tax band. This minimises the tax you will have to pay.
I worked for a company that went bust, and with a business downturn and family commitments, I was not willing to travel. So I put a small-ish pension scheme into drawdown, and took about £30k as my tax-free 25%, which lasted me about a year, and set my drawdown payments at £0 per month.
Investment growth means that the scheme is now worth more than it was when I did that, and I can turn the income tap on and off whenever I wish. I am very keen on leaving the fund invested for growth.
Investment growth means that the scheme is now worth more than it was when I did that, and I can turn the income tap on and off whenever I wish. I am very keen on leaving the fund invested for growth.
Do try and spend it before you die though!
Some interesting figures in here, my state pension age is 66, 21 months away, the state pension forecast is £250, just looked ,so up to date.
I took my pension at 55, or rather withdrew it for specific reasons, took the 25% tax free , reinvented the rest in stocks and shares with a investment company through a local broker, its now doubled after 9 years, remember they go down as well as up, also re-joined the company pension so have 9 yrs in that at the moment. Why would you not take your state pension from the day its due, treat that as your annuity and any private pension use as a flexible friend.
I took my pension at 55, or rather withdrew it for specific reasons, took the 25% tax free , reinvented the rest in stocks and shares with a investment company through a local broker, its now doubled after 9 years, remember they go down as well as up, also re-joined the company pension so have 9 yrs in that at the moment. Why would you not take your state pension from the day its due, treat that as your annuity and any private pension use as a flexible friend.
B
Bodd
No by reinvesting it wasn't taxed, will be when I start to draw on it, but only at the lower rate.
B
Bodd
So you invested through another Pension provider?
Sponsored Links
Similar threads
