receiving a private pension at 52

rugen02

hello
i took voluntry redundancy a few years back and could recive my works pension from 50. the only problem is Im still employed and losing 40% in tax off my pension each month.

is there any way i can freeze receiving the pay outs till say 60 and receive a larger sum each month?

thanks

carl

AlanP_2

You would have to ask the Administrators to make sure, but probably not.

What you could do, if you don't want the cash each month now, is pay it into a SIPP that you can then access when you want to from Age 55.

Would get tax relief so would avoid / delay that for now until you are (possibly) a 20% tax payer living off pensions.

Subject to limits around overall annual salary, other pension contribution and annual allowannce situation but could be the best option for you.

molerat

Very difficult to put the genie back in the bottle once it is out. Can you not pay into a new pension ?

k6chris

Simply pay the money you are getting from the pension into a SIPP, then you will get 20% autoamtically added and the other 20% (if you are a higher rate tax payer) refunded if/when you do a tax return. The money can be accessed (via draw down) once you are 55 and if you have stopped work, may be subject to only basic rate on the way out (if you are then no longer a higher rate tax payer). This is what I am doing.

xylophone

You are currently employed and paying into a pension scheme with your existing employer?

If so, are you able to increase your contributions to this scheme/increase level of salary sacrifice if this option is available?

Or had you considered opening a personal pension/stakeholder/SIPP ?

https://forums.moneysavingexpert.com/discussion/comment/73577460#Comment_73577460 see links in post 2.

capital0ne

rugen02 wrote: »

hello
i took voluntry redundancy a few years back and could recive my works pension from 50. the only problem is Im still employed and losing 40% in tax off my pension each month.
carl

This makes no sense, you only say you could receive your works pension. Did you/
Then you say you're still employed, but you say you took voluntary redundancy.
I suppose you got a new job, that's okay, so why did you take your pension?
Did you think you wouldn't get another job?
What proportion is your pension of your overall income, maybe you could just work less to earn less so you don't fall into the higher tax bracket.
Or as someone else said pay enough income from your job to take you out of the higher tax bracket.
Good luck