Widnes Two Hats Posted November 15, 2020 Share Posted November 15, 2020 Right in a few years I can take out of my pension, probably be a tidy sum, I paid in since I was a kid and now I get to take 25% out which Im gonna do, couple of hundred grand but is there any negatives in taking money out? Well apart from the obvious pension will be less Quote Link to comment Share on other sites More sharing options...
Mounts Kipper Posted November 15, 2020 Share Posted November 15, 2020 (edited) 6 minutes ago, Widnes Two Hats said: Right in a few years I can take out of my pension, probably be a tidy sum, I paid in since I was a kid and now I get to take 25% out which Im gonna do, couple of hundred grand but is there any negatives in taking money out? Well apart from the obvious pension will be less Just make sure you pull it out when it’s recovered from the current stock market drop. Use the Which draw down calculator to see how long your cash pot might last, and take financial advice. Think Hazzy is the pension advice professional on here. https://www.which.co.uk/money/pensions-and-retirement/options-for-cashing-in-your-pensions/income-drawdown/income-drawdown-calculator-making-your-money-last-awvp49g8uq6l Edited November 15, 2020 by Mounts Kipper Quote Link to comment Share on other sites More sharing options...
Widnes Two Hats Posted November 15, 2020 Author Share Posted November 15, 2020 (edited) Well I like gambling and I like investing in Stocks, probably done it about 20 years, in fact I had 2 years off work in 2010 and did nothing but trading so thats not an issue, just wondered about tax etc Edited November 15, 2020 by Widnes Two Hats Quote Link to comment Share on other sites More sharing options...
Site Supporter MickyD Posted November 15, 2020 Site Supporter Share Posted November 15, 2020 Bolton Diver sorted my lad’s pension. Quote Link to comment Share on other sites More sharing options...
Escobarp Posted November 15, 2020 Share Posted November 15, 2020 Yep @Widnes Two Hatsgive BD a shout and he will sort you out with the necessary advice etc Quote Link to comment Share on other sites More sharing options...
Widnes Two Hats Posted November 15, 2020 Author Share Posted November 15, 2020 Thanks all, I met BD somewhere on one of our european trips possibly Lisbon or Marseille and I spoke to him once pissed up (me not him) but I'll message him at some point, not for a few years yet but I'd like to know if I can retire early, Im a lazy cunt and dont wanna work til Im 60ish Quote Link to comment Share on other sites More sharing options...
Mounts Kipper Posted November 15, 2020 Share Posted November 15, 2020 3 minutes ago, Widnes Two Hats said: Thanks all, I met BD somewhere on one of our european trips possibly Lisbon or Marseille and I spoke to him once pissed up (me not him) but I'll message him at some point, not for a few years yet but I'd like to know if I can retire early, Im a lazy cunt and dont wanna work til Im 60ish If 200k is 25% of your pension pot, think you’ll be fine. Quote Link to comment Share on other sites More sharing options...
Widnes Two Hats Posted November 15, 2020 Author Share Posted November 15, 2020 Its about £350K so thanks, means only a couple of years to work, woo hoo Quote Link to comment Share on other sites More sharing options...
Ani Posted November 15, 2020 Share Posted November 15, 2020 (edited) Ok. If 25% is £350k you need to get financial advice ASAP. This would make your total pot over the maximum amount.(£1.07m) Possibly not worth paying anymore in, unless you find a tax efficient way of doing it. Unless you need the £200k to say pay your mortgage or drug dealer off it is not probably a good idea to take it all at once. Using numbers above you currently have £350k tax free and £1.05m taxable. Once you take the £200k. £600k (£200k is 25% so £600k is the other 75%). Any growth on that part of the pension is taxable. (Encumbered and unencumbered is I think the technical term). If you take say £50k non taxable you have a nice pot. Then you take another £12500 from the taxable bit of your pension. This uses your annual tax allowance so although taxable you do not pay tax on it. This also frees up about another £3k to take free (£12.5 k taxable -75% £3k -25%) You therefore have £66k cash with no tax liability. But you have only used 53k tax free from your pension pot. This way you have an extra £147k in your pension pot to grow that is tax free. You can always take more if (or in your case when 😆😄) you spunk a load away. It is all about managing the money so you get as much tax free as possible and certainly avoid 40% tax bracket. If you waste the tax free bit early on you can not get it back so as tempting as it is you need to take care. I have mate that manages mine via St James Place lost a fortune earlier in the year was over £200k down but am virtually back to the start of year numbers. Edited November 15, 2020 by Ani Quote Link to comment Share on other sites More sharing options...
Moderators Casino Posted November 15, 2020 Moderators Share Posted November 15, 2020 mines with SJP too Whenever folk talk pensions on here, i feel like ive not got enough However, mrs casino has worked for the NHS for over 30 years and gets paid more than me So im sure we will be fine And we have a decent house that we rent out Ive got my eyes on 60 and no more Quote Link to comment Share on other sites More sharing options...
Site Supporter MickyD Posted November 15, 2020 Site Supporter Share Posted November 15, 2020 Are you married? I’m wondering if a single person with a pension who dies has the pension die with him. Seems a shame that for a large pot. I reckon it’d be easy to find a late teen/early twenties Russian [s]nymphomaniac[/s] bride who fancies [s]you[/s] your pension in exchange for having to put up with you for a few years. Quote Link to comment Share on other sites More sharing options...
Site Supporter MickyD Posted November 15, 2020 Site Supporter Share Posted November 15, 2020 How do you strike through? Quote Link to comment Share on other sites More sharing options...
Ani Posted November 15, 2020 Share Posted November 15, 2020 4 minutes ago, MickyD said: Are you married? I’m wondering if a single person with a pension who dies has the pension die with him. Seems a shame that for a large pot. I reckon it’d be easy to find a late teen/early twenties Russian [s]nymphomaniac[/s] bride who fancies [s]you[/s] your pension in exchange for having to put up with you for a few years. Most pensions have a beneficiary you nominate if you die pre retirement. In then depends on the type of pension. My missus gets all mine tax free if I die before 75. Quote Link to comment Share on other sites More sharing options...
Escobarp Posted November 15, 2020 Share Posted November 15, 2020 1 minute ago, Ani said: Most pensions have a beneficiary you nominate if you die pre retirement. In then depends on the type of pension. My missus gets all mine tax free if I die before 75. How olds your missus? And does she fancy a toy boy? Quote Link to comment Share on other sites More sharing options...
Site Supporter MickyD Posted November 15, 2020 Site Supporter Share Posted November 15, 2020 Just now, Ani said: Most pensions have a beneficiary you nominate if you die pre retirement. In then depends on the type of pension. My missus gets all mine tax free if I die before 75. That’s my point. Your missus get’s it, not a random nominated beneficiary. Quote Link to comment Share on other sites More sharing options...
Ani Posted November 15, 2020 Share Posted November 15, 2020 10 minutes ago, Casino said: mines with SJP too Whenever folk talk pensions on here, i feel like ive not got enough However, mrs casino has worked for the NHS for over 30 years and gets paid more than me So im sure we will be fine And we have a decent house that we rent out Ive got my eyes on 60 and no more If you both have been paying in for that long and have a house you will be fine. I think. I am 55 and have taken the cash from a small pension £10k which will now pay £1200 per annum for life. I took the tax allowance as above as not working at moment. I probably need a couple more years working to be comfortable. The numbers people quote on here sound a lot but if you are 55 and living to 85. You have 25 years. If you have a mortgage probably need £3k a month. £2k no mortgage. £3k is 36k per year so over 25 years £900k. But to get £36k cash you are paying tax. So call it £42k and you are well over £1m, from 67 you get state pension. Quote Link to comment Share on other sites More sharing options...
Ani Posted November 15, 2020 Share Posted November 15, 2020 6 minutes ago, MickyD said: That’s my point. Your missus get’s it, not a random nominated beneficiary. I am not married she is a nominated beneficiary but I can name whoever I want. (Sorry was not clear). Quote Link to comment Share on other sites More sharing options...
Ani Posted November 15, 2020 Share Posted November 15, 2020 8 minutes ago, Escobarp said: How olds your missus? And does she fancy a toy boy? 53 I think. She is a leftie Remaining Trump hater she would love a toy boy. Quote Link to comment Share on other sites More sharing options...
miamiwhite Posted November 15, 2020 Share Posted November 15, 2020 5 minutes ago, Ani said: 53 I think. She is a leftie Remaining Trump hater she would love a toy boy. You're a perfect match 🌹 Quote Link to comment Share on other sites More sharing options...
Escobarp Posted November 15, 2020 Share Posted November 15, 2020 7 minutes ago, Ani said: 53 I think. She is a leftie Remaining Trump hater she would love a toy boy. Sounds right up my street 😂. A wee project to work on. Quote Link to comment Share on other sites More sharing options...
miamiwhite Posted November 15, 2020 Share Posted November 15, 2020 Whatever happened to the SERPS stuff ? Did that just get rolled up and put into the normal pension pot ? Quote Link to comment Share on other sites More sharing options...
radcliffe white Posted November 15, 2020 Share Posted November 15, 2020 The old pension subject sticks in my throat only recently started paying anything really substantial into one (got a workplace pension but nothing major) so I’ve got to put a fair chunk each month away to catch up. remember my old man talking to me about planning ahead etc but took no notice so the last 20 years I have been spending most of my income on bwfc, fortunately I’ve got no mortgage so can save but it won’t be anything to shout about when I come to retire Quote Link to comment Share on other sites More sharing options...
Guest Posted November 15, 2020 Share Posted November 15, 2020 1 hour ago, miamiwhite said: Whatever happened to the SERPS stuff ? Did that just get rolled up and put into the normal pension pot ? essentially, yes Quote Link to comment Share on other sites More sharing options...
miamiwhite Posted November 15, 2020 Share Posted November 15, 2020 3 minutes ago, Mr Grey said: Worked in the public sector the last 32 years, i think lump sums stopped around 2007, but can take 25% out from the age of 55...I think. steady wage, steady pension, I'm worth more brown dead. You'd be worth much more mate if you meant brown bread 😄 God help those kids you and Miserable Mick Brown try to headyoukate 😉 Quote Link to comment Share on other sites More sharing options...
Burndens Bogs Posted November 15, 2020 Share Posted November 15, 2020 5 hours ago, Widnes Two Hats said: Its about £350K so thanks, means only a couple of years to work, woo hoo If you mean that £350k is your total pot, you can draw £87,500 tax free at 55 years old. The rest can be drawn whenever you like, but is taxable obvs. Quote Link to comment Share on other sites More sharing options...
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