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How Long Before I Get The Money?! ££!

as400
as400 Posts: 167 Forumite
in Pensions, annuities & retirement planning
Coming up to 55 and have 2 small pension pots from previous employers...one for £20K one For £45K.


If I elect to cash them in how long does it usually take before you get the funds?....


Roughly?

Comments

  • MallyGirl
    MallyGirl Posts: 7,516 Senior Ambassador
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Do you realise that if you take it all you will pay take on 75% of it and will be limited to £4K pension contributions in the future
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • lisyloo
    lisyloo Posts: 30,113 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I think that’s mean to be tax.
    I would avoid the higher rate tax band by not taking it all In one tax year.
    Also if you have spare personal allowance (0% tax) in future years you might want to also avoid the basic (20%) tax band
  • tacpot12
    tacpot12 Posts: 9,525 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Are these pension 'pots' in Defined Contribution schemes or Defined Benefit schemes?
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Silvertabby
    Silvertabby Posts: 10,646 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Are these both DC pensions or DB? If DB you will fall foul of trivial commutation rules (max £30K).
  • Marcon
    Marcon Posts: 15,864 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    as400 wrote: »
    Coming up to 55 and have 2 small pension pots from previous employers...one for £20K one For £45K.


    If I elect to cash them in how long does it usually take before you get the funds?....


    Roughly?

    Varies hugely. Ask the provider/scheme. Could be a few weeks, could be months - just make sure you provide all the information, certificates etc when requested.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    as400 wrote: »
    Coming up to 55 and have 2 small pension pots from previous employers...one for £20K one For £45K.
    If I elect to cash them in how long does it usually take before you get the funds?....
    Roughly?

    Could be several years before you get it as the care home where you'll be placed for needlessly burning a shed load of money in tax doesn't allow the residents their own money.
  • wjr4
    wjr4 Posts: 1,356 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Highly recommend you get financial advice before proceeding with this transaction!
    I 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.
  • as400
    as400 Posts: 167 Forumite
    tacpot12 wrote: »
    Are these pension 'pots' in Defined Contribution schemes or Defined Benefit schemes?

    DC

    Yeah realise only 25% would be tax free.

    Currently still in employment and contributing to works pension.

    Guess I will pay 40% tax on the remaining 75%...but am not bothered, the total amount is only very small.
  • Pension_Geek
    Pension_Geek Posts: 205 Forumite
    100 Posts First Anniversary
    Presumably you have significant wealth in other places which means pensions and the associated tax benefits you receive are not for you?

    If not, don’t go ahead with this ludicrous plan, please. The tax will be huge, and you’ll never see it again.
    Not an expert, but like pensions, tax questions and giving guidance. There is no substitute for tailored financial advice.
  • xylophone
    xylophone Posts: 45,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Currently still in employment and contributing to works pension.

    Is this a DC pension? Are you aware of the MPAA after you flexibly access a DC pension?

    https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/

    75% of the total pots will be added to your employment income in the year of receipt - it seems likely that on the pension income alone you'll be paying close on £20,000 in tax.

    And see

    https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/

    You can make an appointment with Pension Wise.

    https://www.pensionwise.gov.uk/en
This discussion has been closed.
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