Can anyone advise please.

rizla01

I am 65 in 6Mths time and have two pensions one is worth £1.1k and the other £24k.

I am not in great health (COPD) so imagine I am best off surrendering both pensions.

I am presently selling up so I might just add it to the proceeds. (£350k+ with no mortgage).

What I need to know is how best to cash in.
Am I right in assuming that I can ask for 25% of BOTH pensions before cashing in and not have to pay tax (I have £0 income BTW)
Then will I get clobbered for just 25% of the remainder?

Is there a better way of taking my money out?

Also, the letter I received from them telling me the value f my pension pot said £23, 300. When i rang first time (3 days later) it was £23, 800 and yesterday (2 more days later) it was over £24k. At this rate I think I could do well leaving it for a while? My Santander accounts aren't paying that.

Finally, If I leave it to grow, can I decide how much I want to take per month?

dunstonh

I am not in great health (COPD) so imagine I am best off surrendering both pensions.

Maybe. maybe not. Depends on what you mean by "not in great health".

What I need to know is how best to cash in.

There is only one way.

Am I right in assuming that I can ask for 25% of BOTH pensions before cashing in and not have to pay tax (I have £0 income BTW)
Then will I get clobbered for just 25% of the remainder?

Not quite.

You get 25% tax free. The other 75% is treated as income in the year it is taken. It is then subject to income tax at the appropriate rate (which can include higher rate).

Is there a better way of taking my money out?

An annuity or drawdown.

Also, the letter I received from them telling me the value f my pension pot said £23, 300. When i rang first time (3 days later) it was £23, 800 and yesterday (2 more days later) it was over £24k. At this rate I think I could do well leaving it for a while? My Santander accounts aren't paying that.

investments zig zag in value and you need to average out those ups and downs. The last few weeks have been very good. The last few days have seen small declines.

Finally, If I leave it to grow, can I decide how much I want to take per month?

That method is called drawdown. And yes you can.

kidmugsy

Are those pensions money purchase/defined contribution, or defined benefit/final salary?

Are you influenced by the thought of somebody else "inheriting" part of the pensions?

rizla01

Wouldn't 25k less 25% tax give me a better return than 6k tax free and £1k annually in the up-to 20 years lifetime. (Hope to make it to 85 if lucky)

xylophone

Are you drawing your state pension?

http://www.which.co.uk/money/retirement/guides/income-options-for-your-pension-under-the-2015-rules/

https://www.pensionwise.gov.uk/ might assist.

atush

When will you start getting your SP as this will mean you will have an income?