Pension Freedom

jamesd

catalonia13 wrote: »

How do I get it changed?

Pick the new place that you want to use. Ask them for their form to use to transfer in money from another pension scheme. Fill that out and send it in. It'll take a few weeks to a couple of months or so to do.

jamesd

Cloudyday wrote: »

My wife has her SERPS pension and a private pension other modest savings but is short of the 10500 tax threshold, can she take advantage of this she is 70..??

Yes, until she reaches age 75. Since she gets it all out tax free she'll get the whole of the tax relief as her benefit for doing it.

Cloudyday

I am a bit confused as to how much you can put in first year pension, some reports say same as your income (including the 20%). Others a 40k yearly allowance.

jem16

Cloudyday wrote: »

I am a bit confused as to how much you can put in first year pension, some reports say same as your income (including the 20%). Others a 40k yearly allowance.

There are two allowances that count. One is the annual allowance of £40k and the other is the amount which will allow tax relief and that is 100% of your earned income.

xylophone

If a person has no earned income, the pension contribution is limited to £2880 net, £3600 gross.

Cloudyday

I understand I can back date and get the last 3 years allowance..
would my provider do that, or me, through HMRC..

Thanks

jem16

Cloudyday wrote: »

I understand I can back date and get the last 3 years allowance..

Remember the Carry Forward allowance only applies to the annual allowance. It does not allow you to carry forward tax relief and that is still limited to 100% of earned income in the tax year you made the contribution. What is your earned income for this tax year?

You also need to have been a member of a pension scheme during the years you wish to carry the allowance from.

KevinG

The article talks about the possible effect of withdrawing funds on benefits such as Jobseeker's Allowance or Pension Credit, which is due to their being reduced by savings but does not mention the effect on Tax Credits, due to 75% of the amount withdrawn being treated as income. This is a significant point as withdrawing a relatively small fund I have would have wiped out our Tax Credits for the year, so I have thought better of it for now and will wait until my circumstances change.

SilverArrowUK

Yes there's all this how easy it is to get your pension till you actually try and getting it and then as facing with weeks of paperwork. I asked my company about this as I am 56, they said I could not do draw down with them and I had to contact the pension providers and they said the only way to do it would be to transfer out to another one that would do it, so that's what I have been doing, but this is where a lot of people seem to be having the problems its not as cut and dried as people first thought, a lot of companies are looking at legal loop holes to keep the money in the plan and not let people have it.

Of course they want people to buy annuitants so they will never get what they should get unless you live to be 95 years old. so in my case I was told be the new company that where my pension is held at that they could do this all electrical and then i get another letter saying the people that hold my pension don't use that system.

now this part is the stalling tactics coming out, I rang the new company up and they had sent a request for my pension but the company that hold it said that they are waiting on my employer because the forms they have up to the beginning of apr this year because of the new rules they have to be all reprinted again and that's going to take a couple of weeks to get that done.

I then called them up today and asked them what the progress was of this, they said we have a meeting with your company tomorrow and we need the transfer packs off them, but then when i ring my pensions department up they said its with the lawyers and its going to take another 2 weeks.

for something that's supposed to be simple it seems like no one was geared up for this happing and when ever i get it could be 6 - 8 weeks down the line of course we know what these companies are doing putting our money into a high interest account to get it back but again its us that's still waiting, how long is the waiting time to be fobbed off?

bmm78

SilverArrowUK wrote: »

for something that's supposed to be simple it seems like no one was geared up for this happing

Who claimed it was going to be simple?

For the last 12 months informed commentators have been trying to explain that the timescale was far too short to have everything in place.

It isn't a grand conspiracy to hold onto your money. It is the inevitable result of fundamental reforms being pushed through without any consultation, and with a timetable motivated by political considerations.