Early Retirement

Jack_Itin

I see that from April next year, that we will be able to take a 100% lump sum, that is if I understand it correctly, I just wondered how,or if, this would affect me ? as said earlier, I hope to retire early, next April, taking the maximum lump sum available to me now (tax free).... any advice on this appreciated.......Jack

jem16

Jack_Itin wrote: »

I see that from April next year, that we will be able to take a 100% lump sum, that is if I understand it correctly, I just wondered how,or if, this would affect me ? as said earlier, I hope to retire early, next April, taking the maximum lump sum available to me now (tax free).... any advice on this appreciated.......Jack

No it will not affect you as Final salary pensions are not part of these changes. The change only applies to Defined Contribution pensions.

Jack_Itin

O.k Jem, Thanks, another question answered........Jack

Jack_Itin

O.K Just another quick question, Say I could lay my hands on £5000 right now....that would be more than enough to see us through to April next year....if I decide to go now, 7 or 8 months earlier than originally planned.....how would this affect my final pay out ? would I have to send for another forecast?........Jack

jem16

Jack_Itin wrote: »

O.K Just another quick question, Say I could lay my hands on £5000 right now....that would be more than enough to see us through to April next year....if I decide to go now, 7 or 8 months earlier than originally planned.....how would this affect my final pay out ? would I have to send for another forecast?........Jack

Are you referring to your state pension forecast or your private pension?

If it's your private pension taking it 7/8 months earlier will see the pay out lowered.

Jack_Itin

Jem, Yes it's the private pension I refer to....would seven/eight months really make that much difference ? Jack.

Jack_Itin

I have today been asked if I would consider, after early retirement in April, working for 2 or 3 days a week, it would be my choice as to when I worked......what I would like to know is....would this affect my pension ?........I realise that I will be liable to pay income tax, is the limit still £10.000 ?.......Jack.

Jack_Itin

One more thing, will I still have to pay N.I. contributions ?

jem16

Jack_Itin wrote: »

I have today been asked if I would consider, after early retirement in April, working for 2 or 3 days a week, it would be my choice as to when I worked......what I would like to know is....would this affect my pension ?

It may or may not affect your pension. Only the pension scheme rules can tell you that answer.

I realise that I will be liable to pay income tax, is the limit still £10.000 ?.......Jack.

At the moment it is but that will probably increase in April 2015.

jem16

Jack_Itin wrote: »

One more thing, will I still have to pay N.I. contributions ?

Until you are 65 you are liable for NI contributions on earned income, but not on pension income.