Do I take all my pot?

Mnd

What might be worth investigating is to take your 25% tax free and reinvesting that into your pension to gain the 25% tax relief

xylophone

You say that you are working part time - does your employer offer a pension?

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

Do you have a spouse?

kidmugsy

craggstar wrote: »

I'm 55 and have a pension pot of £30,000. ... 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? Should I take my tax free 25% and look at trying to invest the rest.

As you are aware, you are not well off. It's therefore particularly important to avoid income tax. If you take the whole £30k you'll pay 20% tax on three-quarters of it = £4,500 thrown away needlessly. So the sensible thing is to use the 25% tax-free as you think best. You'd leave the other £22,500 invested until you stop working. That's when you should be able to draw it out carefully over a few years so that there's no income tax to pay.

As for the TFLS, Mnd's scheme is pretty good. Withdraw it, in one lump as long as it doesn't exceed £7,500, or in two successive tax years otherwise. Bung it into a pension, and it will eventually let you have another tax-free portion, and more money that will be finally tax-exposed but will actually pay no income tax because you will be drawing it out slowly once you've finished work.

craggstar

It was just because I could. I,ve decided to leave it with Royal London for as long as possible and try and add to it.
Thanks

craggstar

wow!
all makes great sense.
Thanks...you should do this for a living :T

craggstar

Yes, I'm self employed. Yes I'm married.
I think Ill leave it with Royal London and just add in if thats possible
:beer:

xylophone

Have you checked your state pension (see above)?

Has your spouse? Does he/she have pension provision over and above the SP?

You can check with RL on whether or not the plan is still open for contributions.

Don't forget that you will benefit from tax relief within a personal pension.

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

If you contribute say £200 a month, then your pension provider will claim tax relief of £50 a month and add it to your plan.

atush

If your pension is only 30K, and if you want to retire someday- why not add to this pension?

Or open a new one? Or get a job with an employer who will pay into the pension for you?

cloud_dog

craggstar wrote: »

Yes, I'm self employed. Yes I'm married.

Does your spouse work, or earn below their personal allowance (£11850)? If they don't work / earn less than £11850, they could gift you some of their personal tax allowance.

AnotherJoe

craggstar wrote: »

Yes, I'm self employed. Yes I'm married.
I think Ill leave it with Royal London and just add in if thats possible
:beer:

Did you read / understand the comments about taking out the 25% tax free and then paying it back in to get more money?