MSE News: Budget 2014: Radical reforms to give greater access to pensions savings

kidmugsy

jordisonforbes wrote: »

, sorry i,m new to this

We all were once.:)

big_mortgage

Is there a stakeholder pension scheme that allows you to pay in when you want and drawdown as you wish? thus taking advantage of the tax relief? Or do you have to close it down each year as a previous poster does?

atush

You can't put in and take out of the same pension constantly, it isn't a savings acct.

Once you take out your LS, you can't put any more into that particular pension if you take the rest taxed or not.

What you can do is open another pension. But doing this yearly can be expensive for charges?

vixen1500

mancmum wrote: »

I only have the carer's allowance of 3K per year. Pension pot is 50,000 could I take 12,500 tax free. Take 10,000 tax free and then pay tax on the remaining 27500?

Sorry to have to tell you that carers allowance is taxable. so only £7000 would be tax free then 20% on the remaining £30500.

kidmugsy

Froglet wrote: »

I am already taking as an annuity a very small one and have 2 more,one at 10k and one at nearly 30k.If i convert the 10k into an annuity i presume this counts towards the total and not just the one that is still a lump sum? I am happy to wait a year and decide my options then,just wanted some clarification please.

thanks

They would add up the £30k, the £10k and a value attributed to the one already being taken, so you'd be over £30k. There is one stunt that would be available if you were in a hurry: see my reply below.

kidmugsy

goinkonit wrote: »

My husband retires in June and we will have a adequate final salary pension. He also has 2 private pensions of £28,000 and £12,000. Would we be able to take the £28,000 as a tax free lump sum from Thursday 27th March,2014, or does it have to be added to the other £12,000 therefore taking us above the £30,000? Thank you.

If you are prepared for the hassle and the charges, and if he will be over 60, he could transfer parts of the bigger pension so that it ends up as three separate pensions each containing just over £9k. Since each would be less than £10k, he could then withdraw all three as "small pots". The £12k pension would have to wait until 2015-2016. Note that in each case 25% would be tax-free, with the balance exposed to income tax.

fordcapri2000

I have asked this question in a few places, but still not had a clear answer yet, or I just cannot accept what good news this is :-)

I have a private pension pot of £100k+ which I had frozen and stopped making payments a few years ago now, and I have a small Forces pension.

My biggest regret was ever taking out a pension which has now turned to joy if I am right about these changes. Can I now take the money once I reach 55 which is still quite a way off and invest it how I please?.

gadgetmind

fordcapri2000 wrote: »

Can I now take the money once I reach 55 which is still quite a way off and invest it how I please?.

If the proposed rules go through as planned in April 2015, then yes. However, doing this in the way you describe above will generate a large tax bill that will probably make things worse for you than if you left it invested inside the pension and drew it down more slowly.

wotsthat

fordcapri2000 wrote: »

My biggest regret was ever taking out a pension which has now turned to joy if I am right about these changes. Can I now take the money once I reach 55 which is still quite a way off and invest it how I please?.

You're in your fifties so not 'quite a way off'.

You can already invest the money how you please, you could already plan on getting 25% tax free and you could already draw down and pay tax at your marginal rate.

Taking a £100k pot at age 55 in one hit will make you popular with the treasury but will be a mistake for you personally.

fordcapri2000

gadgetmind wrote: »

If the proposed rules go through as planned in April 2015, then yes. However, doing this in the way you describe above will generate a large tax bill that will probably make things worse for you than if you left it invested inside the pension and drew it down more slowly.

....

It is not my plan to take it all out, and I have even rang Aegon last week to restart payments, I am just over the moon that we no longer have to take annuities out. Along with the fact that I want to work as long as possible, one day from putting me six foot under even .. so paying into a pension for as long as possible has become far more attractive.

Interested in anything to do with tax on pension if you can point me in the right direction.