Pensions - someone tell me the score

[psychocandy]

Late 40s now. Few years ago stuck a load of work pensions together into a SIPP (although got one that wouldn't move). Mrs has got an NHS pension too.

At the moment, I stick money in but probably not enough. Currently got about £120K in there. Not good I dont think.

What are the rules now? Am I right that at 55 you can withdraw some? Tax free?

Go on - make me jealous at how much is in your pension pot....

Might just spend all mine and throw myself at the mercy of the state ;-)

[northernladuk]

Would it have been hard to even put the slightest modicum if effort in firstto find out at least the basics?

[BrilloPad]

I read up on the rules the other day as I am 55 in August.

You used to be able to take out 3/8 of your pot tax free. That is now reduced to 25%! Though you can put the remainder into an "approved scheme".

There is a second route. You can just draw down the money as cash. First 25% is tax free. Then you pay tax on the rest.

I want to move abroad. So I think I will take the whole lot as cash when I go then give HMRC the middle finger.

[psychocandy]

I read up on the rules the other day as I am 55 in August.

You used to be able to take out 3/8 of your pot tax free. That is now reduced to 25%! Though you can put the remainder into an "approved scheme".

There is a second route. You can just draw down the money as cash. First 25% is tax free. Then you pay tax on the rest.

I want to move abroad. So I think I will take the whole lot as cash when I go then give HMRC the middle finger.

Cheers Brillo you old bugger!

So 25% tax free. Guess its well worth chucking the max in then as you get towards the age. Dont see the point in withdrawing the rest though and paying tax on it -sort of defeats the object of paying it into pension tax free doesnt it?

Now thats plan. Do a bunk.
If not, I might cash it all out, spent it on a few holidays then claim pension credit. Now is there a retiredcontractoruk.com where I can vouch for this plan and upset them on there too?

[ASB]

I read up on the rules the other day as I am 55 in August.

You used to be able to take out 3/8 of your pot tax free. That is now reduced to 25%! Though you can put the remainder into an "approved scheme".

There is a second route. You can just draw down the money as cash. First 25% is tax free. Then you pay tax on the rest.

I want to move abroad. So I think I will take the whole lot as cash when I go then give HMRC the middle finger.

Sadly that doesn't work :-(

There is a tax charge if you do not transfer it into a qualifying overseas scheme.

So you can get the privilege of paying UK taxes whilst being non resident.

[pr1]

Sadly that doesn't work :-(

There is a tax charge if you do not transfer it into a qualifying overseas scheme.

So you can get the privilege of paying UK taxes whilst being non resident.

only fair really if you avoided uk tax when you paid in

[Fred Bloggs]

I read up on the rules the other day as I am 55 in August.

You used to be able to take out 3/8 of your pot tax free. That is now reduced to 25%! Though you can put the remainder into an "approved scheme".

There is a second route. You can just draw down the money as cash. First 25% is tax free. Then you pay tax on the rest.

I want to move abroad. So I think I will take the whole lot as cash when I go then give HMRC the middle finger.

Look at QROPS.

[psychocandy]

With dividend tax this year now is good time to start putting a bit more in methinks. Minimum of 27.5% saved now rather than taking as a dividend.

[northernladuk]

With dividend tax this year now is good time to start putting a bit more in methinks. Minimum of 27.5% saved now rather than taking as a dividend.

As you can see from this thread you need to stop thinking and go speak to a professional for some proper advice.

[Bozwell]

Cheers Brillo you old bugger!

Dont see the point in withdrawing the rest though and paying tax on it -sort of defeats the object of paying it into pension tax free doesnt it?

The tax you're not paying on it now is likely to be a higher rate the the tax you'll pay on taking it out when retired. Also you'll have another tax free allowance later where you pay nothing.