Pension lump some

Thecar

Need advice if possible
I have a private pension 
I have only put £26000
But I've decided to cash it in would someone be able able to tell me what money I would get in cash with tax taken out I'm a basic taxpayer reason for cashing in want to give money to our daughter to buy her first house

NottinghamKnight

Seems unwise if your only or main pension. 25% is tax free, so £6500, with the remainder of £19,500 added onto your other income and taxed at that amount. So a basic rate taxpayer on more than £30.5k will start to pay higher rate tax on accessing the full pension amount. 

Dazed_and_C0nfused

Thecar said:

Need advice if possible
I have a private pension 
I have only put £26000
But I've decided to cash it in would someone be able able to tell me what money I would get in cash with tax taken out I'm a basic taxpayer reason for cashing in want to give money to our daughter to buy her first house

You will have to pay at least £3,900 in tax but the taxable element of £19,500 may put you into the higher rate tax band so you could have to pay upto £7,800 depending on how much of your basic rate band is available.

The pension company comoany will initially deduct £7,055.65 in tax so you may get a refund from HMRC or have a little extra to pay depending on how much your other taxable income is.

Thecar

Tks for the reply I'm only paying in 
£32 per MTH the government pays £8 
So that's £480 per year 
there charging me £320 per year to manage the pension so in theory I'm only paying in £160 in to the pot

Dazed_and_C0nfused

It's a nice thing to do for your daughter but what other pension provision do you have?

Have you checked your State Pension forecast on gov.uk?

xylophone

It's a nice thing to do for your daughter but what other pension provision do you have?

OP is aged 61 and in receipt of an occupational pension.

https://forums.moneysavingexpert.com/discussion/comment/77002046#Comment_77002046

I've been in my job for 33 yrs in 2017 I went form a 4 day shift pattern to 3 days as I took my pension so I could reduce my hrs 

xylophone

But I've decided to cash it in would someone be able able to tell me what money I would get in cash with tax taken out I'm a basic taxpayer reason for cashing in want to give money to our daughter to buy her first house

As you are "cashing in" the pension, see https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/ regarding tax .

You can check your state pension forecast here

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

With regard to your gift to your daughter, keep a note of the date and amount with your will as it may be of use to your executor one day.

Albermarle

Thecar said:

Tks for the reply I'm only paying in 
£32 per MTH the government pays £8 
So that's £480 per year 
there charging me £320 per year to manage the pension so in theory I'm only paying in £160 in to the pot

The charges at 1.2% are on the higher side nowadays . If you did decide not to cash it in then you could look at moving it.

NottinghamKnight

Thecar said:

Tks for the reply I'm only paying in 
£32 per MTH the government pays £8 
So that's £480 per year 
there charging me £320 per year to manage the pension so in theory I'm only paying in £160 in to the pot

The fee is on the pot, it would be the same if you weren't paying anything in at all (well probably very slightly less).