Pension nightmare!

rdt123 · 7 October 2018 at 10:35PM

Hi all

I am in a career average scheme but also accrued benefits in final salary. I have 20 years service at the age of 45.

My latest statement calculates my input amount for last year as 110,000. Last year I made an election for 32k

Although I am 10 years from early retirement I am at 96% of the LTA

I need to work out whether to leave now and take the extra income (which would be useful as we have no savings and are basically starting again) or stay in and pay the tax

Any thoughts ?

dunstonh · 7 October 2018 at 10:38PM

Although I am 10 years from early retirement I am at 96% of the LTA

I suspect the majority of the population would not consider it a nightmare and wish they had your problem

Any thoughts ?

When you calculate the options using the appropriate figures, which one comes out best?

rdt123 · 7 October 2018 at 10:49PM

Hiya

Thanks - yes I take the point! I am fortunate but still worried about what to do. The AA charge alone seems bonkers high and very hard to work out

I can’t do the calculations myself and am struggling to find someone

luckyfool151 · 7 October 2018 at 11:34PM

This might help.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/high-net-worth-allowance/

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zagfles · 8 October 2018 at 7:55PM

Why was your PIA so high - did get get a big payrise? If so it could be a one off and you might have allowance available to carry over from previous years. What was your PIA from few previous years? And what do you mean by you "made an election for 32k"?

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zagfles · 8 October 2018 at 8:30PM

Read the OP - said he has no savings. Pension might be worth around £1M, but he can't access that now. Some people even on very high incomes are useless with money.
We discuss LTA issues here all the time. I'd trust the collective opinion of this board over a single IFA any time - we've seen time and time again examples where IFAs don't understand the LTA.