Where to start?

jem16

vintagebrighton wrote: »

One last question...... if we were to use pension saving as a means to save a large sum to buy the property, how would the money be taxed when we want to withdraw it in a lump sum?

VB x

25% tax-free and 75% taxed as normal income.

atush

So it would be wise for each of you to have a pension. 2x tax free sums? 2x personal allowances?

And your OH, is he commuting some of his DB pension to get that Lump sum? Would a higher annual pension be better? Is that pension going to be reduced taken at age 60?

vintagebrighton

atush wrote: »

So it would be wise for each of you to have a pension. 2x tax free sums? 2x personal allowances?

And your OH, is he commuting some of his DB pension to get that Lump sum? Would a higher annual pension be better? Is that pension going to be reduced taken at age 60?

No, it's a LA pension from years ago, he hasn't contributed to it for at least 10 years and it's always been available at 60. The lump sum has always been a separate amount. At the moment he contributes to a different workplace pension which he'll take with him when his contract ends. But yes, I think it'd be a good idea to investigate us both saving into a pension.

Thanks again

VB x

atush

because really, you dont want to have too much of your pension taxed when you draw it out. You esp never want to pay HRT on it.