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getting at my pension

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I have payed in to the nhs plan for 25yrs and plan to leave and go back to holiday letting buisnes.
1`can i cash my pension in and move the money into holiday homes?
2.best person to do the paperwork ?
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Comments

  • jem16
    jem16 Posts: 19,594 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No you can't cash it in.

    You will be able to access it when you are aged 55 or 60 depending on your conditions of service. At that point you will receive a lump sum and a pension.
  • dunstonh
    dunstonh Posts: 119,687 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Even if you could "cash it in", the thought of doing that to an NHS pension would be crazy. It is one of the best pensions around and makes up for the generally low pay.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    No offence to the OP, but it is amazing how many people don't know that once your money goes into a pension, you can never get it out. :(

    One of the biggest downsides to the product, yet it's never mentioned.(The other one is that you have to pay back the tax relief after you retire).
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 119,687 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    One of the biggest downsides to the product, yet it's never mentioned.

    Driving your car into a wall at 60mph can kill you but that doesnt get mentioned either.

    As it happens, I just looked at the NU KFD and the third key point on the very first page says "To keep the plan until your chosen pension age and then use the fund to give you an income for life.

    That pretty clear to me.
    .(The other one is that you have to pay back the tax relief after you retire).

    That is because you don't.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Yes you do.Pension income is taxed (another thing that seems to shock a surprising number of people.)
    Trying to keep it simple...;)
  • But you will have a higher pension because of the value of the funds coming from the tax relief while you were contributing - and if you had simply saved the money in a savings account your income on that would have been taxed along the way.

    For many people, the tax they pay on their pension in payment is less than the higher rate tax they would have paid when contributing.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    But you will have a higher pension because of the value of the funds coming from the tax relief while you were contributing

    There is no difference.
    and if you had simply saved the money in a savings account

    Who suggested that?An investment ISA ( or a property ) may be the correct alternative - a savings account is not suitable for major retirement saving.
    For many people, the tax they pay on their pension in payment is less than the higher rate tax they would have paid when contributing.

    Pensions may be a useful perk for higher rate taxpayers. But most people do not pay higher rate tax.
    Trying to keep it simple...;)
  • EdInvestor wrote: »
    Yes you do.Pension income is taxed (another thing that seems to shock a surprising number of people.)
    You're assuming (as usual) that everyone reading this thread has the full quota of state pension that will usually take them (very) close to their tax free allowance.

    Stop doing this.

    Please.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • david78
    david78 Posts: 1,654 Forumite
    Its about time there was a proper article on this site setting out the myths and facts about the tax benefits of having a pension, i.e. a lot of the tax relief is paid back as tax when you draw an income, but there are some benefits that arise due to (a) ability to withdraw 25% tax free cash, (b) your tax free allowance in retirement, (c) HRT payers now may drop to BRT payers in retirement.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    You're assuming (as usual) that everyone reading this thread has the full quota of state pension that will usually take them (very) close to their tax free allowance.


    No I'm not.Many people however have no idea how much state pension they are likely to get - and how much entitlements to SERPS add up to these days - and this includes you.

    Anyone getting a full basic and S2P will be well over the current age allowance and will most certainly pay tax, never mind any other pension s/he may get on top of that.

    Check it out.
    Trying to keep it simple...;)
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