Retirement Preparations

pile-o-stone

OldMusicGuy wrote: »

I have the same fear. However, there's no need to get the money out as soon as possible. There will be some notice of a major change like this, for example it will have to be announced in a budget and that usually means you have a number of months notice before it comes into force. So it will be quite easy to get the 25% out of a SIPP before any such change comes into force.

That's reassuring

I can't remember with the last change to the TFLS, did they have a deadline for those on the cusp of turning 50 to be able to cash it in before they raised the age to 55? I'm assuming so as they usually do, but I'm just wondering how generous the timeframe was?

pile-o-stone

Thrugelmir wrote: »

To raise tax revenues. Then ISA's (and their predecessors) seem a far better target. Given the accumulated sums invested in them and the income they generate. The average size of a pension pot isn't significant in value.

A change to either one could scupper or at least put a dent into my plans, so it does seem to favour moving the money as soon as the 55 year old threshold is reached.

However, there was the warning you made previously in the discussion, Thrugelmir about this strategy, but I couldn't figure out what your concern was? I'm glad you're back as it's prayed on my mind. What was the issue with this that you were warning about?

Thrugelmir wrote: »

While it's prudent to invest in a tax efficient manner. Don't base investment decisions purely on tax considerations. As a very wealthy person once said to me. Worry about tax once you've made the money.

I found the warning (above). You seemed to be saying with the 'once you've made the money' statement that I shouldn't withdraw the money at 55 because I could make more leaving it in the pension? But the other chap seemed to suggest that it made no difference mathematically? So I'm confused by the two opposing views. Could you elaborate on what you meant with the statement?