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    • Marine_life
    • By Marine_life 15th Mar 17, 12:52 PM
    • 789Posts
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    Marine_life
    Small pension - options
    • #1
    • 15th Mar 17, 12:52 PM
    Small pension - options 15th Mar 17 at 12:52 PM
    My wife has a small, old pension with standard life (value c. 20,000).

    The pension start date is now only one year away (when she is 55) and we need to think about options.

    We don't need the money (either the lump sum or the pension) and want to make sure we take the tax efficient route.

    Is the best thing to simply defer to a later date or something else.

    We won't have any other pension income in the year although other income sources will almost certainly take us into the higher rate.

    Thoughts?
    Something witty goes here
Page 1
    • Dazed and confused
    • By Dazed and confused 15th Mar 17, 12:59 PM
    • 1,492 Posts
    • 621 Thanks
    Dazed and confused
    • #2
    • 15th Mar 17, 12:59 PM
    • #2
    • 15th Mar 17, 12:59 PM
    Most tax efficient would be to defer, for ever. No tax will whatsoever will need to be paid then.

    Will income reduce to basic rate level in the future?
    • Marine_life
    • By Marine_life 15th Mar 17, 1:27 PM
    • 789 Posts
    • 1,388 Thanks
    Marine_life
    • #3
    • 15th Mar 17, 1:27 PM
    • #3
    • 15th Mar 17, 1:27 PM
    Will income reduce to basic rate level in the future?
    Originally posted by Dazed and confused
    Unlikely as we will have investment income and other pensions that will take us over the threshhold.
    Something witty goes here
    • kidmugsy
    • By kidmugsy 15th Mar 17, 1:47 PM
    • 9,377 Posts
    • 6,146 Thanks
    kidmugsy
    • #4
    • 15th Mar 17, 1:47 PM
    • #4
    • 15th Mar 17, 1:47 PM
    She could either leave it all alone, or take the TFLS and leave the rest alone, eventually to be bequeathed to whomsoever she likes. That's efficient from the point of view of IHT. It would also be emergency backup in case things don't go to plan and she does become a basic rate payer.
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