Ready for retirement

stephen0002002

I'm 62 retired. I have a PP of £250000 on drawdown.
I'm now also taking my (2nd FS) pension 5k pa.

For my 3rd and final fund (£100,000) the IFA have advised using:-
Aegon and Retireready with Legal/General Multi Index 5
( Fund = ok - I intend to let this hopefully just just grow for 10yrs)

May I just ask ( before I take the plunge )...
(1) Is Aegon okay as a company ?
(2) Is retireready a reasonable platform ?

Many thanks

ams25

The platform is certainly not the cheapest. See scenario 4.

Can't comment on aegon as a provider but if you Google it you will get some reading material to help you decide.

stephen0002002

I don't mind paying charges if its worth it, but its difficult to know what is good value charge wise. Any thoughts please ?

stephen0002002

Hello. We have saved £2880 into a cash sipp for my retired wife over the last 2 years, so that we take advantage of the tax element. She has no other pension, shes 64. We have approx £7500 in her sipp now (H/L). We would like to withdraw £6000 now. We called HL who tell us they have to basic pay tax before sending and we then have to claim it back from HMRC.

1) May I ask if claiming the tax back from HMRC is normal ? (she is under her allowance)
2) Is there any special way of withdrawing this money from her sipp ?
3) I am receiving my drawdown pension and I claim some tax from my wife's tax code. Do we need to inform this to HMRC ? as she will receive £6000 from her sipp.
3) Am I correct in assuming if we leave £1000 in my wifes cash sipp that we will be able to put in the £2880 again this year before April 1st to get the tax relief again ?

Thank you.

Linton

stephen0002002 wrote: »

Hello. We have saved £2880 into a cash sipp for my retired wife over the last 2 years, so that we take advantage of the tax element. She has no other pension, shes 64. We have approx £7500 in her sipp now (H/L). We would like to withdraw £6000 now. We called HL who tell us they have to basic pay tax before sending and we then have to claim it back from HMRC.

1) May I ask if claiming the tax back from HMRC is normal ? (she is under her allowance)

Yes because HMRC will not issue a tax code for the withdrawal until after the first payment has been made. It's the first payment that triggers the process. In the meantime HL have to, by law, use the default tax code which will result in a tax deduction.


Were she to make a second drawdown after the tax code has been issued, but in the same tax year, she may well find that she gets some or all of the tax refunded.

2) Is there any special way of withdrawing this money from her sipp ?

HL will have a standard process.

3) I am receiving my drawdown pension and I claim some tax from my wife's tax code. Do we need to inform this to HMRC ? as she will receive £6000 from her sipp.

No - HMRC will know anyway and take it into account when assigning the tax code.

3) Am I correct in assuming if we leave £1000 in my wifes cash sipp that we will be able to put in the £2880 again this year before April 1st to get the tax relief again ?

Effectively yes, though different platforms may handle it in different ways. I dont know what HL do.

stephen0002002

Thank you Linton, you're a star