What does the Chancellors pension revolution mean for us?

zagfles

trevbrierley wrote: »

Thanks for highlighting Fidelity - I was struggling to find anyone cheaper than HL for a SIPP in drawdown - the ISAs and S&S a/cs on the rather long and winding road to II.

However the new rules will enable me to draw all the money out of the SIPP over a few years and put in our ISAs - keeping things simpler and with lower charges (dealing costs only with II as a/cs will be in place)

Fidelity insist you get advice or go via their subsiduary for drawdown, neither of which is free by the looks of it. See https://forums.moneysavingexpert.com/discussion/4877432

gadgetmind

zagfles wrote: »

Fidelity insist you get advice or go via their subsiduary for drawdown

Friends Life are the same. Either they will have to change by the time I hit 55 or I'll have to move everything away to a platform that caters for self-sufficient grown-ups.

gallygirl

gadgetmind wrote: »

Friends Life are the same. Either they will have to change by the time I hit 55 or I'll have to move everything away to a platform that caters for self-sufficient grown-ups.

That's good to know, thanks, I'm with them for my works DC pension.

OldDIYer

zagfles wrote: »

Fidelity insist you get advice or go via their subsiduary for drawdown, neither of which is free by the looks of it. See https://forums.moneysavingexpert.com/discussion/4877432

How crazy - maybe the adviser will get me to un-drawdown my SIPP!

I think the horse has bolted.

I'll stick to my idea of drawing all the money out over a few years - keeping below the 40% tax band.

billozz

hi all, i know this has come up before and ive probably asked this question before, but when am i allowed to cash my pension, i know they've changed the rules so that i can now take the lot but not sure when i can actually access the funds my dob is 20 march 1958
thank you

atush

In april next year you will be over 55 so you can do then. Age 55 is the mon and it starts next april.

IF your pension is not a DB/FS pension- what type of pension is it?

billozz

atush wrote: »

In april next year you will be over 55 so you can do then. Age 55 is the mon and it starts next april.

IF your pension is not a DB/FS pension- what type of pension is it?

not sure what db/fs means but the pension is a private pension that only has about £18000 in it so not worth getting an annuity. thanks for the reply

atush

DB is defined benefit/final salary - FS

These are not covered under the new rules, just personal pensions and DC work pensions.

the 75% of the pension fund will be taxed, so could push you into HRT if you have income after april 2015. So to avoid that, you'd have to leave some in the pension for the next year. So 18K would mean 4.5 K in tax free LS and 13.5K to be taxed.

Will you still be working? Is this your only pension?

billozz

yes i will stil be working andthis is my only personal pension

xylophone

yes i will stil be working

Remember that anything over the tax free 25% lump sum is taxable as income.https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf