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Another Ready for Retirement Thread
Comments
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Since nobody else has mentioned it, I'll just insert a quick warning here about the potential for a 25% tax penalty if you save into pensions past the Lifetime Allowance (LTA).DB Pensions (2) currently £25k + £5k p.a., NRA 60, indexed, 50% spouse benefit, 4% p.a. early payment. DC pension £320k now, increasing by £2800 pm
The LTA is currently £1,030k. Your £30k total DB pensions are valued for LTA purposes at 20x, and adding a £320k DC pension puts you at £920k, so you are already at 89% of the LTA. Allowing for investment growth (4% real) on your DC pension alone, adding £2,800/m would put you above the LTA in only two years.0 -
This wouldn’t be a good idea if there is an IHT issue.Another trick would be for you to take the whole TFLS at the beginning and plunk it into savings and investments, including ISAsI am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.0
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