I've Just Hit 55 & Have Pension Questions

penners324

Be very careful of triggering the MPAA by taking taxable pension.

It will yearly contributions to £10k. 

You may regret that decision when you do retire

dizco

Thank you. Assuming I only take up to the 25% tax free amount, this wouldn't trigger the MPAA though right?

Based on all the feedback I've received I'm leaning towards finding alternative ways to raise funds. There is so much to consider, I'd be concerned about messing up and affecting any future contributions into my existing workplace pension.

Mutton_Geoff

penners324 said:

Be very careful of triggering the MPAA by taking taxable pension.

It will yearly contributions to £10k. 

You may regret that decision when you do retire

I think there could possibly be more regret before they retire. Max input when retired (no more relevant earnings) is much less than £10k, ie £3,600.

ukdw

I wouldn't write off the idea of taking £10k as tax free lump sum completely, especially as it sounds like you are adding at least that amount to your current pension each year.
Things to consider however are:
- would taking the money out of a pension rather than income or other sources affect any rights to benefits or other financial protections?
- does the old pension have any guarantees or other features that would be adversely affected by activating it early?
- probably also a good time to review things like investment choices in both your old and new pensions to make sure they are appropriate for your long term plans/risk appetite level etc.

Scott_Chegg_

Rather than access your pension and if you do really need additional funds then why not look at zero % credit cards or even a short term loan. Both methods can be useful if you need some cash. Obviously they are not cheap if you end up paying loads of interest but I would suggest much cheaper in the long run when compared to pension access if you use in a controlled manner.

This forum has loads of info Banking & Borrowing — MoneySavingExpert Forum

Credit Card & Loans Guides - MoneySavingExpert

just a suggestion.....

dizco

ukdw said:

I wouldn't write off the idea of taking £10k as tax free lump sum completely, especially as it sounds like you are adding at least that amount to your current pension each year.
Things to consider however are:
- would taking the money out of a pension rather than income or other sources affect any rights to benefits or other financial protections?
- does the old pension have any guarantees or other features that would be adversely affected by activating it early?
- probably also a good time to review things like investment choices in both your old and new pensions to make sure they are appropriate for your long term plans/risk appetite level etc.

Absolutely, and thank you. Great questions for me to ask my provider. I feel like I've learned more about my pensions in the last few days than I've ever done before.