Old Private Pension

R1chP

AnotherJoe wrote: »

Make sure there are no overpayment limits or anything like that on your mortgage that would cause additional charges to be made.

Thanks for the reply, my mortgage is Halifax SVR. I rang them yesterday and they gave me a final settlement figure of £38829.11 :T

GunJack

R1chP wrote: »

Thanks for the reply, my mortgage is Halifax SVR. I rang them yesterday and they gave me a final settlement figure of £38829.11 :T

That's all well and dandy, but if you take the advice above, you'll pay the mortgage off over 2 tax years ( i.e. could still have it paid off by Apr/May 2019 AND save yourself a shedload of tax...that tax saving could buy a new car, holiday, etc...but you seem determined to deny yourself money...

atush

When I was 55 and they brought in pension release I got a retirement pack from them and was going to use it to buy a new car but bottled out due to tax implications.

I can only have all of it out in one go.

You bottled out die to the tax implications for a car but not the mtg? Paying 20-40% tax on your pension only to pay off a mtg at say 2% is astoundingly unwise.

Far better to transfer the pension, then take the TFLS to pay off some of the mtg. then drawing further amounts later.

As for having tot ake it all in one go, that isnt true. You just transfer it to another pension which allows drawdown.

kidmugsy

AnotherJoe wrote: »

Hargreaves Lansdown would likely be your best bet for a SIPP, since for cash, they make no charges.

Agreed: we like HL. However they charge a penalty if you open a SIPP and them empty it within a year. So once the OP has checked their list of charges he might like to transfer to them, and then do what you suggested, but leaving behind a suitable sum so that the SIPP has been open for a full year before he finally empties it of the last drop.

R1chP

GunJack wrote: »

That's all well and dandy, but if you take the advice above, you'll pay the mortgage off over 2 tax years ( i.e. could still have it paid off by Apr/May 2019 AND save yourself a shedload of tax...that tax saving could buy a new car, holiday, etc...but you seem determined to deny yourself money...

Thanks for the reply, I have a provisional booking with Pensionwise next week.

LHW99

Hargreaves Lansdown would likely be your best bet for a SIPP, since for cash, they make no charges.

Although I think there is a closure charge if you don't leave £1000 in there for a year.

AnotherJoe

LHW99 wrote: »

Although I think there is a closure charge if you don't leave £1000 in there for a year.

yes good point.

R1chP

I rang Phoenix today for a retirement pack to take to my appointment, they said the value (not guaranteed) is now 70k.

atush

so the TFLS should take care of half the mtg?

Why not just pay off that?

xylophone

so the TFLS should take care of half the mtg?

Why not just pay off that?

He'll still need to transfer to a pension offering flexible access first.