Pensions reform

Melmar

This is an extract from the Guardian


"The elderly are to be "empowered" by our chancellor. From April 2015, we will be able to take out our entire pension pot to fritter on whatever we fancy"


If this is correct surely I would be able to take all of the pot of company B?

Daniel54

Melmar wrote: »

This is an extract from the Guardian


"The elderly are to be "empowered" by our chancellor. From April 2015, we will be able to take out our entire pension pot to fritter on whatever we fancy"


If this is correct surely I would be able to take all of the pot of company B?

Under the reforms you can take all of the pot of company B.

25% of the pot will be tax free and you will pay income tax on the remaining 75% at your marginal tax rate

Melmar

Cheers Daniel54


To be absolutely clear, company A and company B's pensions pots are counted as separate pots and not one pension pot. Is this true.


Therefore I could not take the entire company B pot tax free, if it was 25% of both pots added together .

hansi

I have been retired for some years now and receive a LGPS of just over 2K per year. Am I affected by the new pensions reform? Can't seem to get my head around all the different changes.

Daniel54

Melmar wrote: »

Cheers Daniel54


To be absolutely clear, company A and company B's pensions pots are counted as separate pots and not one pension pot. Is this true.

That is correct

As has been said earlier,if you combined Pot A and Pot B ,the maximum you can take from the new combined pot tax free is still 25% ,with the rest being subject to income tax

RichandJ

hansi wrote: »

I have been retired for some years now and receive a LGPS of just over 2K per year. Am I affected by the new pensions reform? Can't seem to get my head around all the different changes.

No, you're not, nothing in the new proposals will affect someone in receipt of an LGPS pension of more than £1,500 pa.

And the pension you're receiving is also above the limit for trivial commutation.

System

Melmar wrote: »

or do National insurance contributions also count towards the pot?

No one has picked up this question yet.
. The concept of the NI contributions is made to resemble a contributory pension, but the government keeps the "pot".

molerat

The important question has not yet been asked of the OP

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are these "company pensions" defined benefit (final salary) or defined contribution ?

atush

Clifford_Pope wrote: »

No one has picked up this question yet.
. The concept of the NI contributions is made to resemble a contributory pension, but the government keeps the "pot".

that question was picked up earlier and answered.

atush

molerat wrote: »

The important question has not yet been asked of the OP

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are these "company pensions" defined benefit (final salary) or defined contribution ?

an important point although the 'pot values' as quoted would mean it wasn't as they are not mentioned as CETV values. and I think it takes time and effort to get a Cetv value?