do i need to take my lump sum in one go

cloud_dog

And what effect do those options have on your pension number and the available TFLS?

markbsac

Whats tfls

eskbanker

markbsac wrote: »

Whats tfls

The subject of the thread!

markbsac wrote: »

tax free

markbsac wrote: »

lump sum

markbsac

eskbanker wrote: »

The subject of the thread!

thanks ill post the difference of all three later.

drumtochty

markbsac wrote: »

my ni is almost there at the moment i lose £5.00 a week nothing im worried about..i have my astra zeneca pension and military pension...until i pop my cloggs :-)

Not a good enough answer I'm afraid.



You retire May 2020.
Check your state pension forecast again at September 2020.
By that time your 2019 2020 NI contribution will be included in your state pension forecast.


If your SP forecast is at the maximum value it can be, then a good job done.


If not you can earn up to £1,000 tax free from self employed income.


Register as self employed with HMRC by October 2020 takes 10 minutes.



Most people declare say £200 from dog walking or ebay selling junk etc.


In April 2021 add the self employed page to your tax return and declare the earnings, there is no self employed earnings police.


Pay £150 approx Class 2 NI contributions and that will add £5 a week to your state pension.


Even you are only £1.00 a week short of the maximum state pension, that will give you £52, £42 after tax a year for say 17 years for the average life span.



Pay £150 and get back £900 or £1,100 if you add in inflation.


For 40 minutes work!!!!!!!!!!!!!!


Then pay £2,880 into a SIPP prior to you getting your works pension and get £720 a year tax relief if your existing navy pension is less than say £10,000 a year.


Free time is expensive and having lunch out or hobbies does cost!

markbsac

cloud_dog wrote: »

And what effect do those options have on your pension number and the available TFLS?

50% pension to my wife my pension drops £939 a year
100% it drops £1752 a year
obviously 0% no drop at all.

markbsac

drumtochty wrote: »

Not a good enough answer I'm afraid.



You retire May 2020.
Check your state pension forecast again at September 2020.
By that time your 2019 2020 NI contribution will be included in your state pension forecast.


If your SP forecast is at the maximum value it can be, then a good job done.


If not you can earn up to £1,000 tax free from self employed income.


Register as self employed with HMRC by October 2020 takes 10 minutes.



Most people declare say £200 from dog walking or ebay selling junk etc.


In April 2021 add the self employed page to your tax return and declare the earnings, there is no self employed earnings police.


Pay £150 approx Class 2 NI contributions and that will add £5 a week to your state pension.


Even you are only £1.00 a week short of the maximum state pension, that will give you £52, £42 after tax a year for say 17 years for the average life span.



Pay £150 and get back £900 or £1,100 if you add in inflation.


For 40 minutes work!!!!!!!!!!!!!!


Then pay £2,880 into a SIPP prior to you getting your works pension and get £720 a year tax relief if your existing navy pension is less than say £10,000 a year.


Free time is expensive and having lunch out or hobbies does cost!

thats great advice thank you :-)..just been on gov gateway as of april 2019 i need to make 2 more years contributions to get £168 a week at the moment im at £163 a week.

cloud_dog

markbsac wrote: »

50% pension to my wife my pension drops £939 a year
100% it drops £1752 a year
obviously 0% no drop at all.

Hi

What I was trying to get you to confirm originally (post before previous one) was what is your wife's pension position? How well funded is she if she only got half or none of your pension?

My last post was trying to clarify what the value of half pension for your wife would be based on? For my scheme my wife's 50% pension would be based on my maximum pension even if I took the full TFLS which reduces the pension.

Where I'm going with all this rambling is that I think you need to understand your wife's pension provision in order to make a decision, not just on how it reduces your pension. If your wife's 50% pension is based on your maximum pension and if she doesn't have any/much pension provision of her own then it may make sense to take the full TFLS so as to offer some additional income should you pop your clogs.

This is by now way a comprehensive answer as there is so little we know about your situation but I am trying to extract information from you.

markbsac

cloud_dog wrote: »

Hi

What I was trying to get you to confirm originally (post before previous one) was what is your wife's pension position? How well funded is she if she only got half or none of your pension?

My last post was trying to clarify what the value of half pension for your wife would be based on? For my scheme my wife's 50% pension would be based on my maximum pension even if I took the full TFLS which reduces the pension.

Where I'm going with all this rambling is that I think you need to understand your wife's pension provision in order to make a decision, not just on how it reduces your pension. If your wife's 50% pension is based on your maximum pension and if she doesn't have any/much pension provision of her own then it may make sense to take the full TFLS so as to offer some additional income should you pop your clogs.

This is by now way a comprehensive answer as there is so little we know about your situation but I am trying to extract information from you.

hi thanks....yeah she only has a very small pension at 60 and her state pension at 67...we are both the same age 57 this year, so one could die before the other but if i go before im 67 there will be enough in savings for her to reach state pension age...so i was thinking about 0% we want to enjoy the 25% tax free lump sum as soon as we get it and also enjoy the bigger pension a month between us...it depends i suppose on what we agree to do.

cloud_dog

markbsac wrote: »

hi thanks....yeah she only has a very small pension at 60 and her state pension at 67...we are both the same age 57 this year, so one could die before the other but if i go before im 67 there will be enough in savings for her to reach state pension age...so i was thinking about 0% we want to enjoy the 25% tax free lump sum as soon as we get it and also enjoy the bigger pension a month between us...it depends i suppose on what we agree to do.

Hi

Thanks for the information. Obviously, we need to make decisions we feel comfortable with going forward.

Just as a comment really.... I will be taking the full TFLS and investing it in S&S ISAs. My company scheme (as mentioned) pays a pension of 50% of the maximum pension to the dependant. I expect my wife to out last me and therefore I wish to ensure she has more than adequate pension provisions (TFLS in S&S ISAs) to mitigate the reduction on pension payments she will experience on my passing. She also has fairly limited pension provision in her own name (although we are making every effort to rectify this as much as possible over the coming years).