Pensions

I'm not in that situation, but two big cons that spring to mind of taking monthly payments...

The biggest possibly is that, depending on how you're taking monthly payments, you may be hit by the Money Purchase Annual Allowance limiting you to paying a relatively small amount each year into any pension ever again, this includes money your employer is playing in.

Another con is that you'll be paying income tax on all your monthly pension income (assuming you're tax free allowance is already used up by your employment income),

You should probably be looking at getting professional advice, or at least doing serious online research.

 

Oh, and a pro is... get your money out now before the government changes the rules again and stops you getting access to it in the way or at an age that you want. That's the factor driving my plans, but I'm not working, and I plan on taking monthly payments to keep me below the annual income tax free allowance.

 

It is, so speak to a properly independent adviser who can explain things in a way you can understand. Ours has been a great help.

 

I was told regardless how much you earn you can take out 25% of your pot tax free, anything else is taxable

One of my pensions is in a high risk investment pot and it goes up and down like a whores draws

also the bloody fees are excessive

 

well at least you know its in demand and making money

 

I’m of the same mind, never know what’s round the corner

 

I am just about to take my pension at end March at 58 but will be retiring so not quite the same situation as you.
If you transfer your money to a drawdown then you should be able to take the 25% tax free and leave the rest in there to invest without being taxed. £12,800 of any pension is tax free if you have no other income If its a final salary and you take it as such then you will have to start taking your pension. This could affect which tax band you are in so need to be careful of that.
I have spent about two years preparing my exit plan and have used St. James Place as they are on the Pensionwise Government approved site. My mate has been with them 10 years and while some years they didnt grow, overall the average was 8% growth in the 10 years. Their charges aren't excessive but probably not the cheapest. You get what you pay for as with everything

Pensions must be up there as one of the most important actions you will ever do so it is worth while getting good advice

Also worthwhile googling "drawdown" as these have taken over from what was buying an annuity which had huge costs

 

I took my occupational/company pension with a lump sum when I was 52, I'm now 66. I took the tax free lump sum and put the rest of my lump sum back into my pension pot to increase my monthly income. I went back to work for a further 10 years (self employed), before retiring fully in 2014. Been drawing the income from my occupational pension since 2004 and added to it with my state pension when I was 65. You will have to pay tax on your income if your pensions and any other earnings are over your available tax allowance, but that is life. I've not had any problems, but would definitely advise you take proffesional advice before you do anything.

 

True, it's taxable income, just like a salary paid by an employer. It all gets added together before working out how much tax is due.

A person retiring on just the basic state pension (currently £6,708 per year) can have almost as much again from a personal pension before they reach the £12,500 personal tax allowance and start paying tax. So they get to keep more of their pension money than if they took it whilst in full time employment (which already put them over the allowance.)

If you retire at 55 and have little or no other taxable income, you can make full use of the £12,500 allowance on the personal pension income.

 

It may be best to consolidate your pension into your current scheme if you are not planning on retirement. If you dont need the 25% tax free sum then I would leave it in a pension.
Everyones situation is pretty unique so definitely worth getting advice mate

 

Spot on mate, spend it while you can enjoy it. The other down side is that if you keep saving and do eventually have to go into care, your hard earned saved cash will go to pay for your care.

 

If you have no dependents and you have a final salary scheme then you are better transferring it out into a drawdown. If you die with a final salary scheme your wife only gets half of the value of your pension. Then when she dies the money has gone. If you have the money in a drawdown and you die she still has the full value of your fund and it will also go to any designated favourite Triumph forum members that you have in your will when she dies.

 

You know I did see two of these great advice idiots and left more confused than before I went in. They tell you nothing other than we can't advice you on that.
Regards
Joe.

 

If you are 55 now then you will have to do the above calculation from your retirement age which is now 67.

 

I think they are all shitting themselves Joe. Due to a lot people that have been ripped off with their final salary transfer pensions the genuine guys now have to jump through hoops to give you the correct advice where they can. It can be bloody confusing though. Im now at the stage of deciding how much of my pension to "crystallise" and how much to leave "uncrystallised" FFS!!