Early Retirement

Jack_Itin

Thanks for that, so by the time I take early retirement at the end of April, it will be £10,600 ?.........Jack

mgdavid

yes the allowance for year starting April 6th is £10600.

kidmugsy

Linton wrote: »

Yes.....................................

Perhaps more precisely it's included in total income (i.e. for tax) but not total earnings (re pension contributions).

Jack_Itin

O.k, Thanks for that......since I first posted on 20-5-14 it has come around rather quickly, so just double checking everything................Jack.

Jack_Itin

Hello, I have a couple of questions regarding the new pension rules, due to come in, in April.....I believe that you can now ''take the whole lot''.....I am taking early retirement at the end of April, with a substantial lump sum, and a ''reasonable'' monthly pay out.......what do the changes mean to me ?......is there anything in the new rules that would benefit me in any way ?........Jack.

jem16

Jack_Itin wrote: »

what do the changes mean to me ?......is there anything in the new rules that would benefit me in any way ?........Jack.

The changes don't affect the type of pension you have. Yours is a Defined Benefit pension - the new rules are for Defined Contribution schemes.

kidmugsy

Jack_Itin wrote: »

... the new pension rules, due to come in, in April.....I believe that you can now ''take the whole lot''.....I am taking early retirement at the end of April, with a substantial lump sum, and a ''reasonable'' monthly pay out.......what do the changes mean to me ?......is there anything in the new rules that would benefit me in any way ?........Jack.

They make DC pensions so flexible that you might care to use them as a handy tax-shelter. You can contribute £3600 gross p.a. (£2880 net) even if you have no earnings. Ditto for your wife. (This thread is long; forgive me if you do not have a wife.)

atush

Yes, and a while back I s aid to put any income from your pension you dont need into a new DC pension for yourself. You can contribute as much of your PT earnings as you like (up to 40K).


And this new pot will in fact be under the new rules. So could be very useful to you as kidmugsy says above.

Jack_Itin

Thanks to all who replied, I see now that defined benefit pensions are not included in the new rules.....I think that I have been fortunate to have been in such a scheme for the last 30 years or more.......Jack

jem16

Jack_Itin wrote: »

I think that I have been fortunate to have been in such a scheme for the last 30 years or more.......Jack

Very fortunate indeed.

Have a happy retirement. I took early retirement at Christmas - best decision I have ever made!