Beach Hut
Brighton Bhuna Boy
Ours was capped as final salary you were on last September which is ok for me but a massive blow for others
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Ours was capped as final salary you were on last September which is ok for me but a massive blow for others
D
Deleted User X18H
Guest
- Thread starter
- #42
My point was that if I had say £300,000 in various pots, could I take £75,000 tax free when I hit 55?
You can take 25% tax free at 55
D
Deleted User X18H
Guest
- Thread starter
- #44
Yes i thought as much. Amazing really
Whether you actually do it or not, or whether it's advisable, is another question.......but the flexibility is useful
One of the few sensible things I have done, moneywise, was to get advice as soon as the government started changing the workplace pension rules, 17 or so years ago. I started my pension when aged 28. It is one of those excellent final salary ones. I recall NHS staff 'opting out' in the late 80s and losing out badly. So 17 years ago I took advice, and arranged to max out my AVCs AND pay so that when I hit 60 (next year) I will have accumulated 40 years' pensionable service (i.e., I have added 10 year's of payment to my pension). The final salary rules changed a few years ago but this hardly affects me as the new arrangment applies only to money going into the plan going forward (not retrospective). The lump sum and monthly salary I can take next year are mouth watering. But I expect I will stay put at work, so I can add to the pension if I want. Or I can take a lump sum and upgrade to a bigger Favrsham Towers with a larger wine lake. Having lived in pinched circumstances for much of the last 30 years I think I deserve a bit of extra comfort now. Anyway as others have said, take advice (this applies to me wrt to how much I'm taxed if I take lump sums) and pay into a big stable scheme for as long as you can.
Gazwag
5 millionth post poster
I knew eventually it would be a "look at how much I have stashed away" thread
Tom Hark Preston Park
Will Post For Cash
- Jul 6, 2003
- 72,383
Seems like a good thread to EXHORT people to track down any lost pensions they may be owed, using the government's free pension tracing service.
If you know the company you worked for, no matter how long ago, just enter the company details and it'll tell you where to write off to see if you have an old pension with that company. Like I posted on here before, I worked for a publishing company for four years back in the late seventies. Had no recollection whatsoever of joining their pension scheme or making any contributions (may have been non-contributory). Wrote to the company's pension administrators who confirmed I did indeed have a small pension that had been sat there gathering dust and gaining interest all those years. Not exactly a life changing amount if taken as an annuity, but with the newish pension freedoms, multiply the annuity by, say, a minimum of 20 and you could easily end up with a very tidy lump sum instead.
The website was relaunched last year, with the press release including the following:
'Minister for Pensions, Baroness Ros Altmann said:
People have had on average 11 jobs during their working life which can mean they have as many work place pensions to keep track of.
The new DWP online Pension Tracing Service helps reunite people with their lost pensions, giving details of providers to help people track them down.
I’d encourage anyone who thinks they may be missing out on any savings to use the free online service at www.gov.uk/find-pension-contact-details.'
Gotta be worth a few minutes of your time if you are approaching retirement age shirley?
If you know the company you worked for, no matter how long ago, just enter the company details and it'll tell you where to write off to see if you have an old pension with that company. Like I posted on here before, I worked for a publishing company for four years back in the late seventies. Had no recollection whatsoever of joining their pension scheme or making any contributions (may have been non-contributory). Wrote to the company's pension administrators who confirmed I did indeed have a small pension that had been sat there gathering dust and gaining interest all those years. Not exactly a life changing amount if taken as an annuity, but with the newish pension freedoms, multiply the annuity by, say, a minimum of 20 and you could easily end up with a very tidy lump sum instead.
The website was relaunched last year, with the press release including the following:
'Minister for Pensions, Baroness Ros Altmann said:
People have had on average 11 jobs during their working life which can mean they have as many work place pensions to keep track of.
The new DWP online Pension Tracing Service helps reunite people with their lost pensions, giving details of providers to help people track them down.
I’d encourage anyone who thinks they may be missing out on any savings to use the free online service at www.gov.uk/find-pension-contact-details.'
Gotta be worth a few minutes of your time if you are approaching retirement age shirley?
Beach Hut
Brighton Bhuna Boy
So with any pension you can take out 25% tax free at 55, assume the pension monthly drops pro-rata ?
Not sure it's any scheme, some may have restrictions. Drop in resulting pension would also depend on the scheme - reductions vary.......hence the need for advice.....
- Jul 10, 2003
- 27,791
I have to say I am stunned that a man of your standing has got to the age you have without discussing this with your accountant, IFA and Broker
LamieRobertson
Not awoke
I have to say I am stunned that a man of your standing has got to the age you have without discussing this with your accountant, IFA and Broker
I'm stunned that he actually gets paid for his 'journalism'
Beach Hut
Brighton Bhuna Boy
I'm stunned that he actually gets paid for his 'journalism'
Perhaps it is more to do with what he used to do
Perhaps it is more to do with what he used to do
Weather forecaster ?
LamieRobertson
Not awoke
Hmm..i don't know..its all a bit foggy to me
Beach Hut
Brighton Bhuna Boy
I very much doubt a local weather forecaster would accumulate that sort of pension pot
LamieRobertson
Not awoke
Perhaps it is more to do with what he used to do
You are right of course..I was just being flippant
Whoosh......but probably would in fact. Mostly they're met office staff on a very generous final-salary scheme........a projected pension of less than 10k a year would need a pot of over £300k at todays values.
giveusfalmerplease
Well-known member
I have a relative who is basically skint now after ill health and now unemployed but built up a decent pot for retirement so , now she is more healthy its mad that she cannot cash in the money (and at the same time probably save the government paying her jobseekers!). Would n'tyou rather be able to have your money now when you are well enough to use it? As i understand it she has to wait until shes 55 and even then because she will be heavily penilised for taking it early, anything she gets would probably be swallowed up by the reduction in benefits she gets >(
Steve Foster
Well-known member
If you have an older pension scheme with protected tax free cash, then the tax free sum may well be higher, but it will always be at least 25% if transferred to a modern pension arrangement - but you cannot do this by yourself, or normally via your pension provider, but via an IFA who has the qualifications to do so. All the regulatory responsibilities fall upon us - hurrah!