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What counts as 'earnings' for your pension contribution limit?
Hoping you guys can kindly help with this question. Does anyone know what kinds of income count as 'earnings' for the purposes of calculating your pension contribution limit? Obviously salary and self employment profits count. And I know that earnings/dividends from investments don't count. But what about things like…
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Am I on the correct tracks?
I would love some advise/help to make sure I have my pension on track for retirement. Some background I am 25 (earning £45K+) and planning on retiring at 55 or 60. I have 2 pensions at the moment: * Pension 1 open since 2014 & has £18.6K in it which has been performing at 10% per year * Pension 2 opened since 2018 & has…
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Good commutation? Bad commutation?
Sorry in advance if this has been covered before. Transferring out of a DB scheme is more often than not considered a bad move even with large commutations, Advice is needed if over £30000 to give some financial protection. But little seems to be said about DB 25% tax free cash being offered when taking the pension , no…
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Armed Forces Pension Scheme - Lump sum purchase of added pension
A relative of mine is in the AFPS15 scheme and is trying to understand the added pension options. She is aged 58 and currently an active reservist so is an active member and being paid for the days she works. I don't know the yearly amount but I'm guessing around £5000 per year. Shje has some spare cash and has been quoted…
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Pension Transfer-In Refused Due to Protected Tax Free Cash
Hello, I've been trying to get my pension situation sorted out. I had 4 defined-contribution pensions, 1 with my current employer, 1 private pension and 2 historic company pensions. Initially I enlisted the help of an IFA to help me transfer the 2 historic company pensions to my current pension scheme. The IFA dragged…
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Additional contribution option
Is this a good investment for my savings which are earning very little at present? https://pensions.gov.scot/nhs/your-membership/your-contributions/increasing-your-pension I'm 56 and have been paying in to public sector dB schemes since age 21. Most of pot is sitting with USS university scheme but last 4 years has been…
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SIPPs and inheritance tax
When I went for my free meeting at Pension Wise the one thing that he went on and on about was that you should put money in a SIPP to avoid inheritance tax. The more I think about it the more I think that a government will just suddenly change the rules. How many people use a SIPP in this way? How safe is it to assume it…
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Question on flexible drawdown mechanism
Our current retirement plans are as follows and I have a question on the mechanics of how flexible drawdown works to see if it does what I want. We plan to retire in around 4-5 years, we will be mid-late 50s and hope to be in this position: * Debt and mortgage free * 6 months emergency fund held as cash - £12K * 2 years…
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SIPP how much can I put in & tax relief
Hi, Looking for some advice with my SIPP. I'm self employed and this is my first year paying into a SIPP. I've been working for a few years so I have a bit of a pot of money that I can put into it. I understand that the maximum I can put into my SIPP is 100% of my earnings for that year. Where I am getting a bit confused…
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Pension Help
Any pension experts? I had a defined pension, I transferred
after expert advice (costly) to Royal London, a high risk flexible pension. The
problem is I have no control over it as its on the LSE which went up by a
staggering amount last week. My concern is it may go pop! Its a very large pot
indeed. Would prefer something…
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women underpaid state pension query - what information to have at hand?
I have been reading the section on the website and thought that it was worth my mum getting in touch to ask the question. Her situation is that she is divorced and did not remarry and Martin had this as one of the categories that her state pension might have been underpaid. Can anyone advise all the information that you…
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Pension provider error-underpayment at Transfer
I transferred a pension last year into a LGPS. I have now received a letter from the previous provider to say that they made an error in the calculation and underpaid by £453. They have stated that they will repay this to me as a small lump sum, with 25% being tax free and the remainder taxable. I have some concerns about…
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NIC Contributions
In need of info for my wife please, She took retirement from part time work September 2020. She earnt just short of 6k in that time and hasn't and doesn't intend to work again. She has this last tax years NIC to get full state pension which she is short of by a few £100. Does that mean she has to pay the full NIC about…
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State Pension + Private Pension Tax Free?
Hi, My dad turns 66 in a few months and has today received his State Pension letter, which he has completed online and also a letter from his private pension with options. First, he has been retired for 2 years, with no income apart from maybe £100-200 interest from savings. After reviewing options for the private pension,…
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Final Salary Pension - Reducing Projcetion
Thank you for reading and in anticipation of any responses. I am around 18 months short of taking benefits from of a Final Salary Pension at age 60. It's not a lot of money and was only built up during a 6.5 year employment from 1995 to 2002. For the first time in 5 years I have recently received a projection of benefits…
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Salary Sacrifice how does it work?
My employer(with whom i am friends) keeps trying to motivate me with money, i keep telling him i want to retire. He wants to give me a pay rise. Whatever he pays me extra will go into my pension, what is the most efficient to receive it?
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Ill health retirement pension
I had been absent from work due to long term illness (12 months as at September 2020) and as this was not the first time plus the fact that my illness is progressively worsening, I discussed retirement with my employer and they thought I would possibly qualify for ill health retirement. The retirement process was started…
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Tax efficient pension strategy advice please
Hello, I am 60 and am looking to retire and stop working in Sep-2022. I would like to know what are the most tax efficient strategies for taking out pension between age 61 and 67 (and the state pension kicks in) and order of withdrawal in order to maximize the income tax allowance. My wife is three years younger than me…
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Rebalancing equity and bond holding
Looking for some expert guidance as bond investing has always appeared confusing to me when it comes to selecting funds in my SIPP and ISA With recent significant equity growth I feel I should be rebalancing towards bonds but when comparing the Vanguard offerings really not sure what I should be considering. I know there…
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Taking out a lump some from my old DB pension
Hi All I was wondering whether someone can help me with the following as I am not 100% sure. I had a DC pension when I was working in Private sector, since then I left my employment and now am back in Public sector which has a DB pension scheme. As I wasn't contributing to my DC pension I cashed in all my pension sum out…
