Pension Dilemma

Jan054

Hi Everyone
I am currently 53 years old and started to look at the pensions I have from previous companies I have worked - I get an update valuation every year - As I have lived and worked overseas for the last 20 years, I am wondering the best thing to do with these current funds- It seems they are taxable if you opt to take out more than 25% and in the end you cannot take the full amounts without being penalized. So I was looking for alternatives that others may have invested in and also would it be worth topping up my National Insurance so I get a better pension from the UK state pension ....

Many thanks

barnstar2077

The more details you can provide, number, value and type of pensions, amount of other savings, and how you feel about risk etc, the more helpful peoples comments will be. Do you want to take them while working, what age do you want to retire? What did your pension forecast say, how many years are you missing, how many do you need?

Dox

Where are you living now/which country will you live in when you retire?

Linton

All UK pensions are taxed as income after the first 25% tax free. It has nothing to do with the funds you happen to be using. You may be able to transfer the pension to the country where you live, but it very much depends on which country it is.

Marcon

Jan054 wrote: »

Hi Everyone
It seems they are taxable if you opt to take out more than 25% and in the end you cannot take the full amounts without being penalized.

You aren't being 'penalised'. You received tax relief on contributions and funds built up in a tax-efficient environment, so it's reasonable that some tax might be charged when you access your fund.

lisyloo

It seems they are taxable if you opt to take out more than 25% and in the end you cannot take the full amounts without being penalized.

Pensions are intended to provide an income in retirement, not lump sums (although there is a 25% tax free lump sum).
You can take out £11850 each year (current amount) without paying any income tax.


The deal is pretty good, but the tax relief on the way in was provided on the basis that this provides a lifetimes income in retirement, not for taking a lump sum in one go.
If you take it all out in one go then what do you expect to live on?

bostonerimus

Your note that you "lived and worked overseas for the past 20 years" needs to be addressed. Where are these pensions? Are they in the UK or overseas? This is very important when it comes to withdrawal rules and taxation as is where you will be living when you make the withdrawals.

xylophone

Have you obtained a new state pension forecast?

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

https://www.gov.uk/new-state-pension/living-and-working-overseas

https://www.gov.uk/international-pension-centre

With regard to the occupational schemes, what type of schemes are they (DB/DC)?

What is their value?
Are you exploring the possibility of transferring to QROPS?

Jan054

Hi Yes they are UK based pensions.
I have an offshore bank account in the Isle Of Man with a GBP account. I am not 100% sure yet if I would retire here in Thailand or Europe

Jan054

Hi
I recently obtained a valuation for my UK state pension currently states by retirement age in 2032 my forecast is GBP 79.10 PER week - if i continue to now contribute to NI from now until that date it could be GBP 144.84 PER week- So is it worth contributing to this?

Another I have with AVIRA which is a personal pension plan which was started and contributed to when I worked in the UK started 1989 with a selected retirement date of 2025 - Current Value as of 2018 is GBP 6,700
Another is from Thomas Cook another Pension Scheme that was done in UK current value GBP 27,629.77 Started 1987- 1992.

Does this help ? I have no desire to retire as yet so probably by 60 years, i just want to know if I should keep these current pensions as they are or invest them in something more.
Having lost a lot of money recently on an investment scheme that went wrong, I guess i am now looking at a more low risk option.

Many thanks

Jan054

I recently obtained a valuation for my UK state pension currently states by retirement age in 2032 my forecast is GBP 79.10 PER week - if i continue to now contribute to NI from now until that date it could be GBP 144.84 PER week- So is it worth contributing to this?

Another I have with AVIRA which is a personal pension plan which was started and contributed to when I worked in the UK started 1989 with a selected retirement date of 2025 - Current Value as of 2018 is GBP 6,700
Another is from Thomas Cook another Pension Scheme (DC) that was done in UK current value GBP 27,629.77 Started 1987- 1992.

Does this help ? I have no desire to retire as yet so probably by 60 years, i just want to know if I should keep these current pensions as they are or invest them in something more.
Having lost a lot of money recently on an investment scheme that went wrong, I guess i am now looking at a more low risk option.

Many thanks