Pension advice

stuart291155

I have a pension that I can take from November , yearly pension of 10.6k or tax free lump sum 47k then 7k per year , already getting another pension of 3.5k per year. Then state pension in 2021. I’m not working and also have 150k savings and no mortgage. I’m clueless about this sort of thing but want to avoid paying tax as much as possible 

Dazed_and_C0nfused

If your primary objective is to avoid paying tax then you need to take the largest lump sum and smallest pension.

You won't be able to avoid paying tax once your State Pension starts.  Although you could defer that.

xylophone

Have you obtained a state pension forecast?

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

stuart291155

xylophone said:

Have you obtained a state pension forecast?

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

Yes 9.1k

xylophone said:

Have you obtained a state pension forecast?

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

Albermarle

but want to avoid paying tax as much as possible 

This should only be part of your decision.

The offer you have to exchange £3.6K pa pension ( probably inflation linked ? ) for £47K seems  a rather poor deal .

Assuming you will be 65 when you start to receive the pension then you would normally hope/expect that the lump sum for giving up £3.6Kpa to be more around £70K .

The amount of extra tax you would pay is small compared to the better option of keeping the full £10.6Kpa , as far as I can see anyway given the limited detail. 

kgmck

Hello everyone. I have a  Stakeholder pension, with L+G since 2002, and now transferred to Reassure. Didn't know of this company compared to the established L+G.  Wondering if i should move to another established company. Im 60 years old now and not sure what to do. Any advice would be most welcomed?

Thanks! KG

dunstonh

Didn't know of this company compared to the established L+G.  

Reassure have a long history.  Albeit under different names.

 Wondering if i should move to another established company.

What is your knowledge of the big brands in pensions?    You level of knowledge may be a reason why you haven't heard of the big brands.    I suspect you wouldn't recognise most of the biggest players.     

As it happens, Reassure are in the process of being bought by Phoenix.  One of the biggest players.