Fsavc

notsogrumpy

Took one of these out 20 years ago...promising me the world. :mad: Since then I have helped keep the pension company in paid employment and amassed a whole 13K. :T So I turn 55 soon and will take the 25% leaving me with around 10K. What are my options. Don't need pension as I am on a final salary scheme!

Any help welcome

Lokolo

How much a year does your final salary pension give you?

dunstonh

Took one of these out 20 years ago...promising me the world. Since then I have helped keep the pension company in paid employment and amassed a whole 13K.

Nothing to do with the fact you paid peanuts into it?

So I turn 55 soon and will take the 25% leaving me with around 10K. What are my options.

Why do you want the 25% lump sum?

notsogrumpy

Teachers pension with 39 years paid up. The FSAVC of 12K really will not give enough to make any difference.

As for paying in peanuts to be honest whilst it is a small amount the company can't even increase the pot by the amount I pay in...I think you call it a DOG. However moaning aside What are the options and I am happy to listen to advice

not desperate for lump sum...just thought better with me than trusting others.

jem16

notsogrumpy wrote: »

As for paying in peanuts to be honest whilst it is a small amount the company can't even increase the pot by the amount I pay in...I think you call it a DOG.

Then change the fund to a better performing fund as that is where the return comes from.

What are the options and I am happy to listen to advice

If your Teachers' pension plus state pension amounts to £20k or over then you can use Flexible Drawdown to take the whole lot - 25% of it tax free and the rest taxed as normal income.

Otherwise you can only get 25% tax free and buy an annuity. However at age 55 that would not be a good choice.

not desperate for lump sum...just thought better with me than trusting others.

You're far better leaving it within the pension tax wrapper than bringing it into a taxable environment if you don't actually need it.

[Deleted User]

20 years for £13k is £50 per month, is that how much you paid in?

notsogrumpy

yes didn't understand what I was buying....my fault was willing to listen to salesman.

So
If your Teachers' pension plus state pension amounts to £20k or over then you can use Flexible Drawdown to take the whole lot - 25% of it tax free and the rest taxed as normal income

Pension as teacher should be around 16K add state pension and it probably is over 20K but presently I am 54 and state pension will not be paid till I am 67.

So is this possible?
Thanks for responses so far.

jem16

notsogrumpy wrote: »

Pension as teacher should be around 16K add state pension and it probably is over 20K but presently I am 54 and state pension will not be paid till I am 67.

So is this possible?
Thanks for responses so far.

Yes it should be possible but obviously you will need to wait until you are receiving both pensions.

dunstonh

yes didn't understand what I was buying....my fault was willing to listen to salesman.

The problem is not the pension. The problem was the amount. You are a teacher. How much did you think 50pm for 20 years was going to make?

The pension will do its job based on whatever you pay into it. Taking it early to get the 25% is pointless if you have no dire financial need for the 25%. It is generally regarded as the wrong thing to do if you take it early without any decent reason for doing so. You lose the tax free status, you miss out on another 10 or so years of growth and reduce the amount you will be able to get out.

dc1606

I have a paid up FSAVC which amounts to about £14000. I don't need the money as I have state plus teacher's pension - haven't done the sums but I guess total is around £20K. Is the amount I could withdraw tax free affected by the budget? Am I still obliged to buy an annuity by age 75 or has that all gone now? If so, what's my best option?

david78

dc1606,

You can take 25% as a tax free lump sum. Under the proposed plans announced today you can then withdraw the rest (in one go or over several years) but this counts as income which will be taxed. Your marginal rate will depend on the pension you receive from your employers scheme plus the amounts you withdraw.

You don't need to buy an annuity. Well thats what's proposed.