Pension Pots

life on mars 73 · Aug 22, 2014

Any financial experts on here ?

I've got a reasonable sized pension pot, and I'm now old enough to take out the 25% bit tax free. Is it best to do that now, or wait as long as possible, so the pot can continue to grow for a few more years ?

HantsSeagull · Aug 22, 2014

life on mars 73 said:
Any financial experts on here ?

I've got a reasonable sized pension pot, and I'm now old enough to take out the 25% bit tax free. Is it best to do that now, or wait as long as possible, so the pot can continue to grow for a few more years ?

the latter as long as you don't need the money - always depending on what you have got it invested in of course!

Mellotron · Aug 22, 2014

I work as an IFA so feel free to PM me if you'd like to discuss further.

Pretty pink fairy · Aug 22, 2014

Mellotron said:
I work as an IFA so feel free to PM me if you'd like to discuss further.

At what cost

regards
DR

nicko31 · Aug 22, 2014

If you can get 25% now I'd do it before they change the rules. With more debt generated under this government than every other government in history sooner or late they will go looking for a savings raid. Pension pots will be an easy target

HantsSeagull · Aug 22, 2014

nicko31 said:
If you can get 25% now I'd do it before they change the rules. With more debt generated under this government than every other government in history sooner or late they will go looking for a savings raid. Pension pots will be an easy target

scaremongering i think - any retrospective action of that sort would be very unlikely and met with a middle class revolt!!

Tom Hark Preston Park · Aug 22, 2014

life on mars 73 said:
Any financial experts on here ?

I've got a reasonable sized pension pot, and I'm now old enough to take out the 25% bit tax free. Is it best to do that now, or wait as long as possible, so the pot can continue to grow for a few more years ?

The rules all change in April 2015. In theory you could take the whole lot out, tho you'd be liable for tax. Don't do anything before April 2015 would be my advice.

Pretty pink fairy · Aug 22, 2014

Tom Hark said:
The rules all change in April 2015. In theory you could take the whole lot out, tho you'd be liable for tax. Don't do anything before April 2015 would be my advice.

Not all pension providers will be doing that

regards
DR

Tom Hark Preston Park · Aug 22, 2014

Pretty pink fairy said:
Not all pension providers will be doing that
regards
DR

Well it was in the last budget, so I'm sort of assuming all pension providers will need to abide by the changed rules. Might be wrong. Still wouldn't recommend doing anything before April 20-15 tho, on the face of it would seem to give you a whole lot more options.

Pretty pink fairy · Aug 22, 2014

Tom Hark said:
Well it was in the last budget, so I'm sort of assuming all pension providers will need to abide by the changed rules. Might be wrong.[/QUOTE as I said might not be for all ,only going on what i was told recently
regards
DR

Tom Hark Preston Park · Aug 22, 2014

Pretty pink fairy said:
Tom Hark said:

Well it was in the last budget, so I'm sort of assuming all pension providers will need to abide by the changed rules. Might be wrong.[/QUOTE as I said might not be for all ,only going on what i was told recently
regards
DR

Click to expand...

Fair enough. I'm sure there will be loads of clarifications issued over the coming months. It's a pretty major change, and one very much the better for anyone coming up to retirement IMHO.
Spending Kids Inheritance already!

Rugrat · Aug 22, 2014

nicko31 said:
If you can get 25% now I'd do it before they change the rules. With more debt generated under this government than every other government in history sooner or late they will go looking for a savings raid. Pension pots will be an easy target

That would be a vote winner!

Rugrat · Aug 22, 2014

life on mars 73 said:
Any financial experts on here ?

I've got a reasonable sized pension pot, and I'm now old enough to take out the 25% bit tax free. Is it best to do that now, or wait as long as possible, so the pot can continue to grow for a few more years ?

It really depends on how much you need it or what you want to do with it. There's no right or wrong. I took mine out have putting some into ISA's (family) so any gain is tax free and have also just "enjoyed" some of it.

You don't need to take all the 25% at once

Biscuit Barrel · Aug 22, 2014

Pretty pink fairy said:
At what cost
regards
DR

You expect him to work for nothing?

dougdeep · Aug 22, 2014

Take interest rate increases into consideration.

LamieRobertson · Aug 22, 2014

A general question needing a specific answer...u sound as though u need some professional advice ..can't help u there

Personally I'm in income drawdown on my SIPP and will be taking the lot as from 2015....spaced out over a few years as to avoid 40% tax...still none of that helps you...all the best in your decision making....just don't rush into anything imho

Driver8 · Aug 22, 2014

life on mars 73 said:
Any financial experts on here ?

I've got a reasonable sized pension pot, and I'm now old enough to take out the 25% bit tax free. Is it best to do that now, or wait as long as possible, so the pot can continue to grow for a few more years ?

I am an IFA but based in Liverpool so not a lot of use to you. My advice would be to talk to a local IFA (ideally a Chartered Financial Planner as they will be suitably qualified) as there are many things to consider. Taking the lump sum has a detrimental effect on the taxation of your fund on death for example and this may be important to you.

I cannot see the 25% tax free lump sum being removed any time soon as of the major political parties only the Lib Dems are in favour in favour of scrapping it and their influence is waning.

As a general rule of thumb it is better not to take benefits until you actually need them.

Pretty pink fairy · Aug 22, 2014

Biscuit Barrel said:
You expect him to work for nothing?

IN THIS INSTANCE .....yep :shrug:

regards
DR

cirC · Aug 22, 2014

I was reading an article on that.Best advice was take the 25% and the remainder invested in growth investment trusts. 60% UK 20% US inc Canada
and 5% each for Europe, emerging markets,Japan and Asia.
The 25% should be split 5 equal parts to last 5 years and hopefully the 75% will get that 25% growth back in the time scale.

Pretty pink fairy · Aug 22, 2014

circ said:
i was reading an article on that.best advice was take the 25% and the remainder invested in growth investment trusts. 60% uk 20% us inc canada
and 5% each for europe, emerging markets,japan and asia.
The 25% should be split 5 equal parts to last 5 years and hopefully the 75% will get that 25% growth back in the time scale.

sounds great doesn't it

regards
DR

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