Should I defer pension until 2015 ?

kidmugsy

If cash for the kiddy-winkies is a big issue, remember that gifting them surplus income is actually a better bet than gifting them a PET - there's no seven year wait for the surplus income route to prove IHT-exempt.

Savvy_amateur

Thanks for that. Not saying much will necessarily be left, but if it is, then I would prefer they had it, rather than pension co. Really could do with opinion on how much, if anything I should pay IFA as will not be using her services after her finding annuities for me.

Triumph13

Savvy_amateur wrote: »

Really could do with opinion on how much, if anything I should pay IFA as will not be using her services after her finding annuities for me.

I have no particular knowledge in this area, but as no-one else seems to be giving you much on this question either...

I presume the original fee would have come out of the pot and will now have to be paid from your (already taxed) cash outside the pension? That would suggest 80% of the agreed fee might be a possible number to think about? Yes she has done the work, but as you have not acted on the advice she hasn't incurred the resulting liability in case of any future claims etc.

Savvy_amateur

Thank you for your answer. I will consider your point about the tax and her liability, or lack of it.

atush

kidmugsy wrote: »

If cash for the kiddy-winkies is a big issue, remember that gifting them surplus income is actually a better bet than gifting them a PET - there's no seven year wait for the surplus income route to prove IHT-exempt.

But wouldn't money taken from the pension count as income? It is being taxed that way?

So would be outside of IHT is the money would not reduce their Living standard?

TBC15

kidmugsy wrote: »

Nooooooo! Deferring of the State Retirement Pension on the present terms is an astonishing bargain. Buy it!

(That's why the reward will be halved for the new-style SRP.)

Rats… another idea goes on the back burner.

Is the new deal still good value if you don’t need SP at the point you qualify?

kidmugsy

TBC15 wrote: »

Is the new deal still good value if you don’t need SP at the point you qualify?

If it were me I'm not sure that I'd find the deferral terms on the new-style SRP irresistible unless deferring the pension let me avoid paying 40% tax on it. Though you could argue that even at only 5.2% it's mildly attractive for an inflation-linked annuity. You could treat it as the conservative part of your investment portfolio, as if it were like index-linked gilts but with the advantage of a collar (probably) if ever inflation turns negative, and put the rest of your dosh into riskier stuff.

TBC15

kidmugsy wrote: »

If it were me I'm not sure that I'd find the deferral terms on the new-style SRP irresistible unless deferring the pension let me avoid paying 40% tax on it. Though you could argue that even at only 5.2% it's mildly attractive for an inflation-linked annuity. You could treat it as the conservative part of your investment portfolio, as if it were like index-linked gilts but with the advantage of a collar (probably) if ever inflation turns negative, and put the rest of your dosh into riskier stuff.

A colleague of mine qualifies for the state pension this August. Could he elect to delay taking his pension under the old 10% up lift rule for every year he delays?

atush

Yes, he could.

TBC15

Thank you I suspect you have made a 64 year old man very happy.