getting at my pension

caravan502

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 ?

jem16

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

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.

EdInvestor

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).

dunstonh

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.

EdInvestor

Yes you do.Pension income is taxed (another thing that seems to shock a surprising number of people.)

LittleVoice

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

LittleVoice wrote: »

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.

Paul_Herring

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.

david78

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

Paul_Herring wrote: »

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.