It's time to start digging up those Squirrelled Nuts!!!!

Albermarle

m_c_s said:

This does demonstrate the need to plan very carefully when retiring early. Sheltering in ISAs may become more important in future years especially after the next general election when, which ever party gets in government, there will be an inevitable focus on generating more tax revenue.
The drag of stagnant income tax allowances will now start to put a strain on SIPPs and who knows what will happen with tax free lump sums.
Also State Pension age will no doubt face further scrutiny and possibly 68 may come sooner to offset the cost of this year's 10% increase.
A balanced plan is required going forward.

In general you are probably right, but I really find it difficult to believe that the 25% tax free could be scrapped.  For many  workers ,who do not really understand about pensions, this is the one bit they do understand and it is seen almost as a retirement bonus. To scrap it would be deeply unpopular, and unfair, and undermine the whole idea of people saving for retirement in a pension.

Sea_Shell

Albermarle said:

m_c_s said:

This does demonstrate the need to plan very carefully when retiring early. Sheltering in ISAs may become more important in future years especially after the next general election when, which ever party gets in government, there will be an inevitable focus on generating more tax revenue.
The drag of stagnant income tax allowances will now start to put a strain on SIPPs and who knows what will happen with tax free lump sums.
Also State Pension age will no doubt face further scrutiny and possibly 68 may come sooner to offset the cost of this year's 10% increase.
A balanced plan is required going forward.

In general you are probably right, but I really find it difficult to believe that the 25% tax free could be scrapped.  For many  workers ,who do not really understand about pensions, this is the one bit they do understand and it is seen almost as a retirement bonus. To scrap it would be deeply unpopular, and unfair, and undermine the whole idea of people saving for retirement in a pension.

I hope I can still get my hands on my 25% in 4 yrs time. 🤔 and DH in ~3*


* from another pension not yet placed in DD.

Ganga

Albermarle said:

m_c_s said:

This does demonstrate the need to plan very carefully when retiring early. Sheltering in ISAs may become more important in future years especially after the next general election when, which ever party gets in government, there will be an inevitable focus on generating more tax revenue.
The drag of stagnant income tax allowances will now start to put a strain on SIPPs and who knows what will happen with tax free lump sums.
Also State Pension age will no doubt face further scrutiny and possibly 68 may come sooner to offset the cost of this year's 10% increase.
A balanced plan is required going forward.

In general you are probably right, but I really find it difficult to believe that the 25% tax free could be scrapped.  For many  workers ,who do not really understand about pensions, this is the one bit they do understand and it is seen almost as a retirement bonus. To scrap it would be deeply unpopular, and unfair, and undermine the whole idea of people saving for retirement in a pension.

Rather than scrap it why not modify slightly , 22.5% for say the next 4 years then 20% after that

eastcorkram

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Sea_Shell

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Well, my plan is to reinvest it back into my (our) ISAs.

Be about £30k.




ETA - I might actually SPEND some of it !!! 😲😲😉

westv

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

You mean taking it in one go.

jimi_man

Sea_Shell said:

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Well, my plan is to reinvest it back into my (our) ISAs.

Be about £30k.




ETA - I might actually SPEND some of it !!! 😲😲😉

On what?????

Sea_Shell

jimi_man said:

Sea_Shell said:

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Well, my plan is to reinvest it back into my (our) ISAs.

Be about £30k.




ETA - I might actually SPEND some of it !!! 😲😲😉

On what?????

I don't know.   It's still a way off.

Might treat myself to a loaf of bread maybe!! 😉

Ibrahim5

You could do with a bicycle.

Albermarle

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Or you have something specific that you wish to spend it on.

It seems that many people take it just because they can, without any thought about what to do with it and leave it languishing in a current or savings account for years,

Also taking it in stages can help with efficient income tax planning in certain situations.

If you take it all out and reinvest it in similar funds, then you have not really achieved anything so why bother. Unless you have an LTA issue, then it can be a good idea.