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Pensions Planning: The NUMBER
The NUMBER is how much income you need to "live comfortably" So What's your number? Very important for pensions planning, to know what you are aiming for. My Number? (for a couple) I calculated: £22,000 based on Food £5,000 Car/transport £5,000 Bills/Utilities £4,500 Holidays/Leisure £4,500 Clothing/Cash/Xmas/Other £2,000…
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Success Stories - Pensions
This is a bit of a light topic where the idea is to highlight what successes you had with your pension pots. Example - I contributed X and accumulated Y by Z year. Total appreciation was 'x' percent. Just trying to learn the following that could inspire a range of people - those with no pension, those who started late etc.…
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Good (and short!) explanation of COPE
There are lots of queries about COPE cropping up regularly. This is one of the better, not to mention shorter, explanations I could find which might help: https://www.wypf.org.uk/pensioner/all-about-my-pension/contracted-out-pension-equivalent-cope-amount/
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Acronyms etc..
Hello to all. As a fairly new forum user I would appreciate someone posting a key to the acronyms and arcane terms used when discussing pension issues. Thank you in advance.
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New board for state pension top-up / Future Pension Centre / voluntary NICs questions
Hi all Regulars on this board will well know how many threads we've seen in recent months about Future Pension Centre-related questions. As a result of a great suggestion from a Forumite (passed on by a Forum Ambassador) we've created a new sub-board for all these types of threads: ➡️ Topping up your state pension ⬅️ If…
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Pensions, Annuities & Retirement Planning Sticky
Welcome to the new Pensions, Annuities and Retirement Planning sticky! 👋 📖 Here are some Forum threads you may find useful (if there are any you think have been missed, please do let me know): * Can I cash in my pension? * Early-retirement wannabe * It's time to start digging up those Squirrelled Nuts!!!! 📝 And here's some…
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SIPPS vs AVCs
Hello, I am struggling to understand if there is any benefit of paying into a SIPP over an AVC? Any help appreciated! Thanks
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Annuity beats drawdown
Currently with £120,000 DC pension pot I can get £9207 - Flat ,No TFLS, 10 year garranty Annuity (couple of medical conditions) At 4% Drawdown I would be starting at £4800 I understand the differences between annuities and drawdown And the pluses and minuses of each And Inflation And lack of pot to be inherited - But That…
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Tier 1 LGPS Lump Sum
Morning all i was retired on a tier 2 and opted to receive a % of my benefits as a lump sum. Following a successful appeal, I was uplifted to tier 1. This has made a huge difference in my monthly income, which is brilliant, however I was expecting a backdated increase to the lump sum. I’ve been told this is not happening,…
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Pension tax relief with redundancy money
I am being made redundant at the end of March. I have also decided to retire at the same time and not look for another job. I'll get about £60k redundancy. I know I can get £30k of that tax-free. I have the option to have the remaining £30k paid into the company defined contriution pension. I'm a higher-rate taxpayer and…
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St James Place concern
I've entrusted my pension investment to St James Place, a
company I consider reputable. However, I've come across several negative posts
about them lately. My financial advisor, who is affiliated with St James Place,
reassures me that these are merely expressions of professional jealousy and
shouldn't be a cause for…
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Am I putting the right amount in my pension
Hope this is the right place to post! I have a salary of about £58k per annum. Trying to not get taxed at in the HR band at 40% so I’ve got my pension contribution at 12.5% based on the rough calculation I did. Is this the right amount so I don’t have to pay HR tax? Does the HR tax band actually matter after considering…
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Tax on drawdown pension
My husband is currently in receipt of an annual defined benefit pension from his occupational scheme of around £31k. He is 65 and 66 later on this year so will get his state pension which will be over £12k. Obviously this means he will be fairly close to the higher tax threshold so we decided to withdraw the dregs of his…
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Terminal illness payments - difficulty with Capita
My husband has sadly been diagnosed with terminal cancer recently. He has been given under 12 months to live. We are putting his affairs in order. He is 60 and hasn't started to draw any pension yet. He has been working through his various pensions to understand death benefits. Some (Aviva, Scottish Widows) pay out the…
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Maximum I can pay into my SIPP before 6 April 2024
I'm 61 years old and self-employed and I am planning to end my business on 5/4/24. My accounting year end is 31/7. Normally, I would use my net profit from my accounts 1/8/22 to 31/7/23 to find the maximum I can pay into my SIPP. (For the last 5 years I have paid the maximum into my SIPP as my wife has enough income to…
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Advice if I can claim old nhs pension years please
I would really be grateful for any advice please about this matter. I came to the UK in 1996 to work in the nhs, where I am still working, when I was young and didn’t know a thing about pensions, also I am not naturally good with numbers. I didn’t realise I had to get a national insurance number as no one told me, so I…
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What happens after I take my 25% TFLS
In most schemes you can take 25 per cent of your pension pot as a tax-free lump sum. You’ll then have 6 months to start taking the remaining 75 per cent - you can usually: What happens after 6 months if I don't start taking the remaining 75%
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How to calculate and pay tax on pension withdrawal
Hi, all Like many people, we're struggling with the current cost of living and I could really do with taking some money out of my pension. It's currently crystalised because I took the 25% tax-free sum, but I need more to clear some debts. I'm used to PAYE though, I've no clue how I'd go about declaring a withdrawal?…
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Double dipping Tax Relief
Greetings, I have searched this forum and others to find an answer to my SIPP tax relief conundrum but cannot find an answer. I shall try and chunk down my question. 1. I have contributed £24,000 nett (approx) to my SIPP in FY23/24. 2. The SIPP provider has credited ~£6,000 in basic rate tax relief. 3. I can apply to HMRC…
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Optimising my pension contributions
This discussion was created from comments split from: 60% Tax Trap and Pension contributions.
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Higher rate pension & interest income allowances - paying the right SIPP contributions
Hello all, I have a question I hope someone might be able to help clarify for me! I am lucky enough to be an additional rate tax payer, and am trying to optimize my tax situation, including by making substantial pension contributions. One aspect of this is that I'd like to get my taxable income below £100K, so that I will…
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Personal allowance taper and Annual allowance
My wife will have taxable earnings of around £120k this year. She is a member of the NHS pension scheme and due to the lag in the rate used for indexing on the 1995 DB section, will have next to no pension input amounts for the current year. Next year I calculate she will have close to £120k pension input amount meaning…
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Should I transfer my SIPP in the civil service scheme?
I'm 48. Recently joined the civil service and they've given me a transfer value of £12k per annum for my £170k SIPP. I am planning to retire within 10 years. As well as contributing to the civil service scheme I'm hoping to buy £8k extra pension, so my total civil service pension from 67 should be around £30k if I do the…
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Abolished N.I - state pension system
Sorry if I'm being dim and I have tried to find answers in existing threads...I heard the government wants to abolish N.I. and we all just pay into 'one tax pot'. If this happens - how will the state pension entitlement be worked out?
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LTA: remove charge from April 2023 and abolish from April 2024
"This measure ensures that nobody will face an LTA charge from April 2023." "The measures to ensure that no-one will face an LTA charge from April 2023 will have effect on and after 6 April 2023." "LTA: remove charge from April 2023 and abolish from April 2024" Pension Tax Limits - GOV.UK (www.gov.uk) This confirms that…
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Boots Pension Linked to Guilts (Government Bonds)
Dear All, My
Daughter and family now live in Australia. I have power of Attorney over her
pensions until I am able to transfer them. One of the pensions is casing me
some concern. The
Pension involved is from Boots (the chemist). In 21st Sept 2021 the
‘transfer value’ was listed as £34,650 yet in 10th Aug 2023 value
given…