How to cash my pension in ?

atush

that will work, up to a point (the point of the IHT threshold) and the fact you cant share allowances or swap assets etc.

Getting married covers it all.

Floyd999

kidmugsy wrote: »

That must mean that it is not available at Zurich. So you'll need to transfer it somewhere else. Consider Hargreaves Lansdown and their competitors. In your shoes I wouldn't invest the money in the pension: your time horizon is short so I'd just leave it in cash. In my experience there's not the remotest need for an IFA for this job, though I admit I've never dealt with Zurich.

You could drawdown the 25% tax-free lump sum immediately after transfer (=£12,500). You could also withdraw £10,600 tax-exposed, but free of tax because you have no other income. Note that the pension provider would be required to deduct some tax, which you can then claim back from HMRC.

Then next tax year (6/4/16 - 5/4/17) you can withdraw another tax-exposed amount that would be again be tax-free by virtue of your Personal Allowance against income tax. The same warning applies. Over three years or so you should have got the whole lot out free of income tax.

Moreover, each tax year you should consider contributing £2880 to a personal pension of some sort; the provider claims money from HMRC to make it up to £3600. In due course you draw that lot out tax-free again, using the same logic.


P.S. After April '16 you should get yourself a forecast of the new-style State Pension that you'll be due at your State Pension Age. If you won't have the full 35 years' worth of National Insurance Contributions you could consider buying more.

To transfer my pension to say: Hargreaves Landsdown, Do I approach Hargreaves Lansdown and tell them I want to move my pension pot to them ? Will I get better deals from some providers than others ?
I have applied to GOV.UK to get an up to date pension statement.

Thanks Floyd

Floyd999

Keep_pedalling wrote: »

Or get wills in place if you have not already done so.

We have wills made out .. but marriage is only a maybe .. I will keep asking her ;-)
Floyd

dunstonh

To transfer my pension to say: Hargreaves Landsdown, Do I approach Hargreaves Lansdown and tell them I want to move my pension pot to them ?

You complete the application process with them online.

Will I get better deals from some providers than others ?

Yes. HL have a good interface but you are paying for it

atush

If you point out as your spouse she can inherit things like Isas, pensions etc tax free she might come around lol? And can 'borrow' part of your PA to save tax for her?

You certainly dont want to loose the girl who is happy to keep you

xylophone

Yes. HL have a good interface but you are paying for it

But if you are going to leave the money in cash, take your lump sum then draw down the rest over a few years to take advantage of your tax free allowance, HL is rather a good option in my opinion.

http://www.hl.co.uk/pensions/drawdown/how-does-it-work

http://www.hl.co.uk/pensions/drawdown/charges-and-interest-rates

No charge to hold cash, a tiny amount of interest, and drawdown without fees.

dunstonh

No charge to hold cash, a tiny amount of interest, and drawdown without fees.

That could be said with most platforms now.

One big negative with HL is that there is no linking between accounts. So, the tiered charges are by account, not investor. Most platforms with tiered charges look at the total amount on platform. Some even have family linking which can be great.

Floyd999

atush wrote: »

If you point out as your spouse she can inherit things like Isas, pensions etc tax free she might come around lol? And can 'borrow' part of your PA to save tax for her?

You certainly dont want to loose the girl who is happy to keep you

Smiles .. very true ;-)

kidmugsy

[QUOTE=dunstonh;68554961
Yes. HL have a good interface but you are paying for it[/QUOTE]

Even better, they employ intelligent humans to answer the phone.

Floyd999

xylophone wrote: »

But if you are going to leave the money in cash, take your lump sum then draw down the rest over a few years to take advantage of your tax free allowance, HL is rather a good option in my opinion.



No charge to hold cash, a tiny amount of interest, and drawdown without fees.

Thanks
Do I choose the initial investment platform with a level of risk I am happy with ? "Because investments can go down as well as up" ;-)

If I needed all my cash suddenly and made the decision to bite the bullet and pay the tax would that still be possible in the same year ?

Floyd