Pension transfer - fees advice please

p00hsticks

ArmyDilllo wrote: »

Tax is not refunded on my SIPP, merely postponed until it has grown and they can take more of it.

And yet your initial post suggested that you intended to draw it down in such a way as to pay on no income tax on it ?

Number75

My retirement age has moved from 65 to 67, so I'm worse off than you as it happens - and although I'm not happy about it, I still wouldn't say I was "robbed".

I suspect that just like me, you'll have done rather well with that SIPP - tax relief at 40% on the way in? Then only 20% on the way out - and that's after the 25% TFLS, then personal allowance tax free. Yes I'll pay tax on the way out, but a large amount of the (hopefully!) growth will have been made on money the Government have just effectively leant me via tax relief.

I am also annoyed at the change in retirement age - but I don't think it's robbery.

dunstonh

rather than leaving it to get a couple of £2k payments per year from 2025 (my original retirement date before the Govt. robbed me of a year).

They ought to bring in compulsory euthanasia for those that think they have been robbed because their state pension age has changed by two years. Maybe tell them they can get their state pension those 2 years earlier but will have to give up their the life expectancy gains and suffer compulsory euthanasia 10 years earlier.

LHW99

Your kids are also likely to be fitter at 70 than you would be at 65, and will have longer to save, and a lot more information to help them understand and make the most of their pension contributions (and other investments if they wish) than most people in the currently-soon-to-be-retired generation.
It has also always been the case - or at least over the last 40-50 years - that you need to be able to fund your own later life care if you don't want to be forced into State provision.

Silvertabby

“ rather than leaving it to get a couple of £2k payments per year from 2025 (my original retirement date before the Govt. robbed me of a year).

When I started work in 1971 my State pension age was 60. It's now 66. Have I been robbed? Not at all - the rise in State pension age in line with increased longevity was inevitable. It's not as though we weren't given enough notice of the changes.

ArmyDilllo

p00hsticks wrote: »

And yet your initial post suggested that you intended to draw it down in such a way as to pay on no income tax on it ?

Yep, I started prioritising payments into ISA's over and above a more secure annuity-based retirement.
I now have a minimal pension fund designed to last until my state pension kicks it (over which I have no influence) and a little bit longer, in case of emergencies.
I shall do this via UFPLS withdrawals.
The values of two smaller pensions which are the subject of this thread have increased considerably in my plans since being offered a larger lump-sum to transfer them.
I shall put those into 'flexible drawdown' and make an immediate 25% tax-free lump-sum withdrawal and then forget about them.

Everything else is in tax-efficient savings vehicles developed, sanctioned, and publicised for all to see.
I have probably had to make more sacrifices than most others in my wealth bracket, which has been possible because of my personal circumstances.
Now is when those sacrifices start paying off.
I still paid into N.I. though, and have also paid into it since retiring.

My pension withdrawals are all designed to be within my annual personal allowance from now on.
I am anticipating that the lifetime allowance will be raised later on or I will probably have to make some taxable adjustments between now and 2050.
My aim is not to pay any further income tax, by using only legitimate and HMRC sanctioned means.
ie. By not incurring any taxable income.

If I can do this, it will increase the value of actual income taken from my savings by almost 20% (by virtue of not paying 20% basic rate) initially and 40% (higher rate) at some point before 2025.
My calculations show that I should be saving 45% in the 2030's.
However, by then HMRC will probably realise what everyone's doing and raise v.a.t. to compensate, or introduce some other way of taxing me.

For those who disapprove, the Telegraph ran a study last Winter and estimated that between 70 - 80% of the U.K.'s retirement savers are doing the same thing.
I'm not doing it because everyone else is - I thought I might be making a stupid gamble on a ridiculous hypothesis.
I've been comforted to learn that others may have reached the same conclusions from the choices that are available to us all.


[edit: I should add that I sought and took advice on these forums about my plans, which were supported by MSE contributors at that time.]

ArmyDilllo

Silvertabby wrote: »

It's not as though we weren't given enough notice of the changes.

I'm going to break into your garage and remove your car.
Thank you for not bringing charges as I have provided notice of my intention.
:beer:

Silvertabby

“ It's not as though we weren't given enough notice of the changes.
Originally posted by Silvertabby ”
I'm going to break into your garage and remove your car.
Thank you for not bringing charges as I have provided notice of my intention.

Armydillo - that's just plain silly.

xylophone

I'm going to break into your garage and remove your car.

Theft is against the law.

The Government's making alterations to State Pension Age isn't.

PensionTech

I'm going to break into your garage and remove your car.

The State Pension is not your property. It is a state benefit. I wonder whether you would make the same argument when changes are made to state benefits for the unemployed/disabled/working poor etc.