Take pension now or wait?

Thrugelmir

Nigh wrote: »

I get a reasonable salary, mortgage is paid off, no debts so I don't need extra money.

You cannot buy time though. Take the money and do something with it that gives you satisfaction. Whether it's an activity, a hobby, travelling or simply supporting some local charities.

Nigh

I'm already doing the things I enjoy, man of simple pleasures (& blowing stuff up).

Nigh

The idea of taking the pension & paying in to my workplace pension is appealing, I'll check that out. Thanks to everyone for he comments, much food for thought.

Sea_Shell

If you're still working full time, and you're already over pension age....when DO you plan on retiring???

Is there a Mrs Nigh?? Are there things that she'd like to do, as a couple?
Are there any Mr Nigh Jnrs? Are you hoping to leave a large inheritance to them?

zagubov

Nigh wrote: »

The idea of taking the pension & paying in to my workplace pension is appealing, I'll check that out. Thanks to everyone for he comments, much food for thought.

Can you check on this?
Do any of the rules against pension recycling apply here or does that only apply to workplace pensions?

And have you considered reducing your workload, to regain some me time, and time with your kith and kin?

Paul_Herring

Do any of the rules against pension recycling apply here or does that only apply to workplace pensions?

The intention (I believe and, it appears, effect) of the rules is to stop the PCLS being recycled back into a pension to obtain even more tax relief via planned schemes.

Note that succeeding in passing at least one of the rules (as opposed to breaking only one) is sufficient to make any contributions 'legal.'

The amount of pension being claimed (which one presumes would be taxed) and subsequently placed into a pension (and receiving releif) would, one imagines, be well within at least one of the rules that the recycling rules put in place - this one would appear to be the most obvious:

because of the lump sum, the amount of contributions paid into a pension scheme is “significantly” greater than it otherwise would be.

Or maybe

and, the cumulative amount of the additional contributions exceeds 30% of the tax-free cash amount.

Of course this presumes the PCLS has been taken in the first place for the rules to be even looked at in the first place.

nigelbb

Paul_Herring wrote: »

The intention (I believe and, it appears, effect) of the rules is to stop the PCLS being recycled back into a pension to obtain even more tax relief via planned schemes.

Note that succeeding in passing at least one of the rules (as opposed to breaking only one) is sufficient to make any contributions 'legal.'

The amount of pension being claimed (which one presumes would be taxed) and subsequently placed into a pension (and receiving releif) would, one imagines, be well within at least one of the rules that the recycling rules put in place - this one would appear to be the most obvious:



Or maybe



Of course this presumes the PCLS has been taken in the first place for the rules to be even looked at in the first place.

This has nothing to do with the OP taking their State Pension. Of course they can pay it onto their company pension & obtain tax relief.

xylophone

The OP appears to be on new SP so no lump sum from deferral to recycle!

And anyway there is no PCLS from a state pension!

He can simply take the SP, regard it as an "income replacement" for part of his relevant earnings and increase his contributions to his workplace pension from those relevant earnings.

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Paul_Herring

nigelbb wrote: »

State Pension.

Doh! Missed the wood for the trees.

Ganga

The original post said they were over state pension age by a few years,if they were due his/her pension on the old scheme they could leave the pension in defferment and take it as a lump sum tax free if they plan it right.