Redundancy looms! How do my figures stack up?

Muppet81

Goodness! What a minefield!

I really do want to treat our new circumstances as a whole new adventure and take responsibility for getting the very best from what we will have but it is so complex and scary.

So much to learn. :eek:

IFA coming up to see us Tues pm. Local chap and well liked and respected . I will report back.

fairleads

Muppet81 wrote: »

Goodness! What a minefield!

Still - after 600 posts?

fairleads

Loughton_Monkey wrote: »

??? Don't understand!

Every £800 I put into a pension becomes £1,000. When I feel like it (probably age 70) I will simply crystalise it and take 25% tax free, and the other 75% at 20% tax immediately on flexible drawdown.

All I have to do is ensure that I have enough headroom to avoid 40% tax - and worst case is probably drawing half on 1st April, and the other half 15th April. So how do I lose 50%?

Lose, or denied, access to it. All due to the fact that our drawdown is limited to, currently, a max 15.2% + the 25% = less than 50%. And on your demise the residue will be taxed.

Muppet81

fairleads wrote: »

Still - after 600 posts?

??? Afraid you have lost me there Fairleads. What 600 posts?

atush

your post count under yourname?

sleepless_saver

Muppet81 wrote: »

Excellent advice about puttinmg ISA in my name for tax benefit furposes. Will investigate ISAs thouroughly in advance

ISAs are not taxable no matter whose name they are in. I think maggieann155's point was about taxable savings accounts.

Loughton_Monkey

fairleads wrote: »

Lose, or denied, access to it. All due to the fact that our drawdown is limited to, currently, a max 15.2% + the 25% = less than 50%. And on your demise the residue will be taxed.

I'm talking about flexible drawdown, so there is no limit.

Upon my demise, the balance will not be taxed at all, but available to my wife to continue drawing. Only upon the last death [between both of us], would any residue be taxed. Do we care? Not at all. We have no children.

fairleads

Loughton_Monkey wrote: »

I'm talking about flexible drawdown, so there is no limit.

Upon my demise, the balance will not be taxed at all, but available to my wife to continue drawing. Only upon the last death [between both of us], would any residue be taxed. Do we care? Not at all. We have no children.

Fair enough, but flexi draw is only available to a minority of pensioners. And the income is taxable.

gadgetmind

fairleads wrote: »

Fair enough, but flexi draw is only available to a minority of pensioners. And the income is taxable.

But even capped drawdown keeps the funds "in the family".

fairleads

gadgetmind wrote: »

But even capped drawdown keeps the funds "in the family".

If by family you mean the drawdown provider then yes. Otherwise the annuitant, initial or survivor, is limited to a cap that currently varies from 5.3% to 15.2% of capital. So if you need an income that increases yr on yr the drawdown/asset allocation has to be managed so that the capital increases at a rate greater than the drawdown. Thus it follows that the survivor will pass on without access to the 84.8% residue. I do however understand that by then the capital pot could be 50% of it's original value but (300K /2) x 84.2% is still a fair bit of dosh to wave goodbye to.