Do I take all my pot?

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
20 replies 1.9K views
craggstarcraggstar Forumite
5 Posts
Hi Folks
I'm sorry for this post as its probably been asked a million times!!!
I'm 55 and have a pension pot of £30,000.
Ive looked at annuities and its basically worth nothing on this front!
I work part time and and my salary is 15,000 per year!
Should i take the lot by a big motorcycle and ride off into the sunset (probably be back in a couple of days as i will have run out of money)
Should I take my tax free 25% and look at trying to invest the rest. i've looked at a few options and I know its not a lot of money.
I have a moneybox s&s isa but Im super scared as I have never had the funds to invest before. I know its not enough to retire on but if I keep working and maybe save too....
i just wondered if anyone else had been in a similar position and could give me a few ideas.
I spoke to 1 adviser who said 30000 or less just take the lot!!!
C
«1

Replies

  • p00hsticksp00hsticks Forumite
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    Nowhere near enough info supplied.....

    Are you retired or still working ?
    Do you have any other pensions ?
    Do you have any other income (e.g. benefits, rental income etc) ?
    Have you got a state pension forecast ?

    'Taking the lot' in one go is going to mean you'll be paying income tax on at least some of the money - unless you have any desparate need for it you may be better off taking it gradually.

    FYI, there is a specific pensions board on the forum over here
    https://forums.moneysavingexpert.com/forumdisplay.php?f=19
  • ZandermanZanderman Forumite
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    As p00hsticks says you'd be better off in the Pensions part of the forum. https://forums.moneysavingexpert.com/forumdisplay.php?f=19

    And you need to give more info if you need advice. For a start why are you thinking of taking any of the pension now? Unless you need it now you could leave it invested. And if its a pension it's already invested so why are you talking about investing it?
  • Argh.
    Thanks for the reply. Yes I still work partime and was wondering really if I took it would it be better invested elsewhere.
    I don't have any other pensions so only my state pension plus anything I can pull together with savings.
    Sorry I'm in the wrong place.
    Thanks again
    !!!128512;
  • edited 31 July 2018 at 10:48PM
    ZandermanZanderman Forumite
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    edited 31 July 2018 at 10:48PM
    If you took it out now to invest elsewhere, as one lump sum, and you're earning £15k, you'd be liable for tax on 75% of it.

    So the £30,000 you have invested (in the pension) would become only £25,500 to be invested elsewhere.

    That's an instant £4.5k loss, just because you wonder if it would be better invested elsewhere! (Unless, of course, you transferred it to another pension...)

    PS I've pm'd redfox, one of the board guides, to see if this thread can be moved to the pensions board.
  • AnotherJoeAnotherJoe Forumite
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    craggstar wrote: »
    Argh.
    Thanks for the reply. Yes I still work partime and was wondering really if I took it would it be better invested elsewhere.
    I don't have any other pensions so only my state pension plus anything I can pull together with savings.
    Sorry I'm in the wrong place.
    Thanks again
    !!!128512;


    Since you haven't stated. where or what it's currentiy invested in, that's a tough question to answer !
  • kidmugsykidmugsy Forumite
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    Don't you dare take all your pot! Madness!

    I'll explain why when the thread has been moved.
    Free the dunston one next time too.
  • redfoxredfox Forumite, Board Guide
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    we move threads if we think they will get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"][email protected][/EMAIL]
    I'm a Board Guide on the Quick Grabbit, Food Shopping & Groceries and Shop but don't drop boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this) Any views are mine and not the official line of MoneySavingExpert.

  • dunstonhdunstonh Forumite
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    and was wondering really if I took it would it be better invested elsewhere.

    Pensions have over 30,000 investment options. A little more than ISAs and unwrapped holdings but generally the same options. So, what is this "elsewhere" that you think may be better?
    I have a moneybox s&s isa but Im super scared as I have never had the funds to invest before.

    Yes you have. Your £30k in the pension is invested.

    You dont need to draw the pension to change where it is invested. That would just be paying tax unnecessarily.
    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.
  • cloud_dogcloud_dog Forumite
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    craggstar wrote: »
    Hi Folks
    I'm sorry for this post as its probably been asked a million times!!!
    I'm 55 and have a pension pot of £30,000.
    Ive looked at annuities and its basically worth nothing on this front!
    I work part time and and my salary is 15,000 per year!
    Should i take the lot by a big motorcycle and ride off into the sunset (probably be back in a couple of days as i will have run out of money)
    Should I take my tax free 25% and look at trying to invest the rest. i've looked at a few options and I know its not a lot of money.
    I have a moneybox s&s isa but Im super scared as I have never had the funds to invest before. I know its not enough to retire on but if I keep working and maybe save too....
    i just wondered if anyone else had been in a similar position and could give me a few ideas.
    I spoke to 1 adviser who said 30000 or less just take the lot!!!
    C
    What is the reason, need, to take your pension money now(ish)?
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • MndMnd Forumite
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    Don't think of a motorcycle.this is for your old age!

    By all means challenge if you can do better than present, but don't jeapordise your future by cashing in your pension now
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
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