budget pension is this right?

[Deleted User]

ok as i understand it

i will be 56 next feb. and have 2 pensions i dont cont.to in total they will have a value of about 30k.
i can take 25% i.e. 7.5k
i can take the other 75% 22.5k less 20% income tax
(i`m not a tax payer but assume the 22.5k one off would make me one in that year?)

is this broadly correct?
cheers

atush

yes,

But what will you live on in 30 years of retirement (or more)?

Annie1960

In principle, yes, but I think this part will not be available until it has been voted through parliament, which could take a year.

Remember that anything over and above the 25% tax free you will need to pay at your marginal rate of tax, so if you have other income this could be 40%, depending on your total income for the year.

SailorSam

woodbine wrote: »

ok as i understand it

i will be 56 next feb. and have 2 pensions i dont cont.to in total they will have a value of about 30k.
i can take 25% i.e. 7.5k
i can take the other 75% 22.5k less 20% income tax
(i`m not a tax payer but assume the 22.5k one off would make me one in that year?)

is this broadly correct?
cheers

I'm 61 next month and have got 2 pensions of about £19k
I asked on another thread if that meant, once i get my state pension can i cash-in the private ones over a few years and not have to pay any income tax if my total income so long as the total income remains below the £10k tax threashold.
Another poster confirmed that will be the case.

[Deleted User]

atush wrote: »

yes,

But what will you live on in 30 years of retirement (or more)?

my wits :j

atush

Good luck with that

SailorSam

atush wrote: »

yes,

But what will you live on in 30 years of retirement (or more)?

A £30k pension pot isn't going to return Woodbine a large monthly pension. I think i'd say getting the cash and paying off the mortgage would be a better option.

atush

paying off the mtg might make sense, as would working longer, having paid off the mtg before retirement.

SailorSam

What's that Pensioners Bond they're talking about now on the news, you can put £15k a year in and not pay tax. Could you transfer your pension pot over 2yrs into the new Bonds.

atush

Haven't read up on this, but think it is a deposit term acct- 3/4 years? And 4% TF?

Could work for the 25% TFLS or any of the pension, but you couldn't put everything in them as they are term deposits.

Thrugelmir

SailorSam wrote: »

A £30k pension pot isn't going to return Woodbine a large monthly pension. I think i'd say getting the cash and paying off the mortgage would be a better option.

That maybe behind GO's thinking. Baby boomers are hitting retirement with mortgage debt with many on interest only mortgages.