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Pensions Pensions Pensions......................

  • Thread starter Deleted User X18H
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Deleted User X18H

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I have studied the Pensions Reform Act 2015 and the Pensions Tax Act 2014.

But, can I really get my mits on my combined pots less pro rata income tax when I am 55?

Seriously.......is that easy?
 








Beach Hut

Brighton Bhuna Boy
Jul 5, 2003
71,903
Living In a Box
Get a final salary one, easier to execute
 






studio150

Well-known member
Jul 30, 2011
29,553
On the Border
Yes its very straight forward if you follow the detail on the pension advice site. You can take the entire amount if you want at 55, but then there is obviously no money left for a pension, so you do need to be entirely sure you want to do this.
Bear in mind that if you take the whole amount, you have to claim the tax back on the 25%. However the other 75% counts towards you income for the year, so you may well jump up a tax band depending on the pension amount you are taking.
 


Bry Nylon

Test your smoke alarm
Helpful Moderator
Jul 21, 2003
19,781
Playing snooker
I have studied the Pensions Reform Act 2015 and the Pensions Tax Act 2014.

But, can I really get my mits on my combined pots less pro rata income tax when I am 55?

Seriously.......is that easy?

You lost me at "I have studied the Pensions Reform Act 2015..."
 




golddene

Well-known member
Jul 28, 2012
1,927
I have studied the Pensions Reform Act 2015 and the Pensions Tax Act 2014.

But, can I really get my mits on my combined pots less pro rata income tax when I am 55?

Seriously.......is that easy?

Hope you find out and can share (not the cash the info) as I have a final salary scheme which was frozen when I was made redundant in 97, and now has a guaranteed annual pension of 13k which I do not intend touching but I also have running alongside a contracted out of serps pension pot with a projected value of 40k which they tell me every year "could buy me a pension of 1.2k annually" I have been contracted back into serps now for over 20 years and am interested in cashing in this pot over two years for tax purposes as I am now not working and am living on savings. Is this even possible any advice gratefully received? Thanks
 


Hope you find out and can share (not the cash the info) as I have a final salary scheme which was frozen when I was made redundant in 97, and now has a guaranteed annual pension of 13k which I do not intend touching but I also have running alongside a contracted out of serps pension pot with a projected value of 40k which they tell me every year "could buy me a pension of 1.2k annually" I have been contracted back into serps now for over 20 years and am interested in cashing in this pot over two years for tax purposes as I am now not working and am living on savings. Is this even possible any advice gratefully received? Thanks

Hi, if you are contemplating transferring your Final Salary pension to a Personal Pension/SIPP you will have to obtain advice from a qualified IFA Practice (about 25% of IFA firms have the qualifications/licence in this area).
For a one hour meeting without cost we are qualified in this field. If you wish to take matters further PM me.
 






Blue3

Well-known member
Jan 27, 2014
5,559
Lancing
Yes its very straight forward if you follow the detail on the pension advice site. You can take the entire amount if you want at 55, but then there is obviously no money left for a pension, so you do need to be entirely sure you want to do this.
Bear in mind that if you take the whole amount, you have to claim the tax back on the 25%. However the other 75% counts towards you income for the year, so you may well jump up a tax band depending on the pension amount you are taking.

Then take the remaining 75% out in stages over several years tax free just below the tax threshold
 


dazzer6666

Well-known member
NSC Patreon
Mar 27, 2013
52,006
Burgess Hill
Hi, if you are contemplating transferring your Final Salary pension to a Personal Pension/SIPP you will have to obtain advice from a qualified IFA Practice (about 25% of IFA firms have the qualifications/licence in this area).
For a one hour meeting without cost we are qualified in this field. If you wish to take matters further PM me.

Just going through this myself and I have decided to opt out a final salary scheme, would recommend getting in touch with [MENTION=12697]Steve Foster[/MENTION] as I did, great service - this needs very careful consideration and expert advice.
 


Daddies_Sauce

Falmer WSL, not a JCL
Jun 27, 2008
850
Just going through this myself and I have decided to opt out a final salary scheme, would recommend getting in touch with [MENTION=12697]Steve Foster[/MENTION] as I did, great service - this needs very careful consideration and expert advice.

Combined a number of pots that had built up over the years, but not drawn down yet, as above PM [MENTION=12697]Steve Foster[/MENTION] excellent service.
 




Weststander

Well-known member
NSC Patreon
Aug 25, 2011
63,389
Withdean area
Hope you find out and can share (not the cash the info) as I have a final salary scheme which was frozen when I was made redundant in 97, and now has a guaranteed annual pension of 13k which I do not intend touching but I also have running alongside a contracted out of serps pension pot with a projected value of 40k which they tell me every year "could buy me a pension of 1.2k annually" I have been contracted back into serps now for over 20 years and am interested in cashing in this pot over two years for tax purposes as I am now not working and am living on savings. Is this even possible any advice gratefully received? Thanks

Read this and other unbiased media articles before even making contact with a persuasive advisor:

http://www.investorschronicle.co.uk/2017/02/02/your-money/pensions-and-sipps/when-should-you-transfer-a-final-salary-pension-yyn2FeMrWNeKQszSgfhoUM/article.html

The default position is generally to remain in a final salary scheme, unless you are concerned about your ill health and/or are concerned about securing the value of the fund for the beneficiaries if you feel that might not be many years away.
 


dazzer6666

Well-known member
NSC Patreon
Mar 27, 2013
52,006
Burgess Hill
Read this and other unbiased media articles before even making contact with a persuasive advisor:

http://www.investorschronicle.co.uk/2017/02/02/your-money/pensions-and-sipps/when-should-you-transfer-a-final-salary-pension-yyn2FeMrWNeKQszSgfhoUM/article.html

The default position is generally to remain in a final salary scheme, unless you are concerned about your ill health and/or are concerned about securing the value of the fund for the beneficiaries if you feel that might not be many years away.

There isn't really a 'default position' - it entirely depends on your individual circumstances/plans/objectives/other assets/tax position/retirement plans/age/size of fund/scheme rules/dependents/investment experience/risk tolerance/income requirements etc etc - hence the need to seek professional advice. Potential ill health, and leaving money to beneficiaries are not the only factors to take into account.
 


LamieRobertson

Not awoke
Feb 3, 2008
46,485
SHOREHAM BY SEA
Hi, if you are contemplating transferring your Final Salary pension to a Personal Pension/SIPP you will have to obtain advice from a qualified IFA Practice (about 25% of IFA firms have the qualifications/licence in this area).
For a one hour meeting without cost we are qualified in this field. If you wish to take matters further PM me.

He hasn't said its a final salary scheme though .....one other thing to bear in mind when cashing in ones pot and that is to avoid paying tax at the 40% rate
 


AmexRuislip

Trainee Spy 🕵️‍♂️
Feb 2, 2014
33,727
Ruislip
He hasn't said its a final salary scheme though .....one other thing to bear in mind when cashing in ones pot and that is to avoid paying tax at the 40% rate

Is it right you can apply to do this in one year, then actually receive it the following year, thus paying less tax?
 




LamieRobertson

Not awoke
Feb 3, 2008
46,485
SHOREHAM BY SEA
Is it right you can apply to do this i

Erm....well I did but mine was in a SIPP and i did it before the rules changed(took it at 50).i'm not totally up to date with the current set of rules....and agree with other posters that professional advice should be taken...but if you haven't already nicked your pension money then for some its an option
 


AmexRuislip

Trainee Spy 🕵️‍♂️
Feb 2, 2014
33,727
Ruislip
Erm....well I did but mine was in a SIPP and i did it before the rules changed(took it at 50).i'm not totally up to date with the current set of rules....and agree with other posters that professional advice should be taken...but if you haven't already nicked your pension money then for some its an option

Currently 5/6 years away from pension mindset, it's just great getting an insight into what people are doing, given the new options.
 



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