It's Finally Done

tacpot12

If you drive and have car insurance, tell your insurer that you are now retired. You can also remove any cover for commuting that might have been included in your car insurance!

I found it useful to make a list of the steps needed to activate my pensions at the right time, and set reminders in my phone for when these steps needed to be done. 

Enjoy your retirement!

cloud_dog

trevjl said:

Mutton_Geoff said:

Universidad said:

trevjl said:

Question to finish, Is there anything I need to do, eg inform HMRC and Aviva etc ?? I wont be drawing down anytime soon.

Is it worth drawing down to the limit of your personal tax allowance if you're taking no income over the next three years before the DB kicks in? 

You can draw 33% more than your tax allowance because of the 25% tax free cash element, so for a standard tax code 1257L, you can draw £16,760 from the DC without paying any tax. 25% of £16,760 tax free, the balance falling within your personal allowance. Fund an ISA with that to protect it from tax.

If you have any savings, you could invest a total of your relevant earnings (generally your total pay whilst you were working) which will give you an effective refund of your income tax in the last year as well as additional 25% tax free cash on drawdown. Assumes you haven't exceeded the LTA etc.

It is worth taking advantage of these tax opportunities even though you may not wish to draw your pension yet.

Thanks will look in to that.

@trevil, just for reference this is referred to a UFPLS, Uncrystalised Funds Pension Lump Sum.

https://adviser.royallondon.com/technical-central/pensions/benefit-options/ufpls-explained/

michaels

If you haven't yet triggered the mpaa it might be worth making a pension contribution this year equal to your entire salary earned this year as you will get tax relief on all of it and even if you pay basic rate getting it back out, with the 25% TFLS you will still be 5% up on the deal - or more if you have paid any higher rate tax this year.

Also some are taking their full TFLS this year before the autumn budget just in case the rules change.

Mutton_Geoff

michaels said:

If you haven't yet triggered the mpaa it might be worth making a pension contribution this year equal to your entire salary earned this year as you will get tax relief on all of it and even if you pay basic rate getting it back out, with the 25% TFLS you will still be 5% up on the deal - or more if you have paid any higher rate tax this year.

Also some are taking their full TFLS this year before the autumn budget just in case the rules change.

What I said a few posts back ;-)

Mutton_Geoff said:

If you have any savings, you could invest a total of your relevant earnings (generally your total pay whilst you were working) which will give you an effective refund of your income tax in the last year as well as additional 25% tax free cash on drawdown. Assumes you haven't exceeded the LTA etc.

It is worth taking advantage of these tax opportunities even though you may not wish to draw your pension yet

Mutton_Geoff

pterri said:

Sound advice, I’ll be taking some of my ISA and popping it into my SIPP this year before I retire next tax year. 

Be careful taking savings from tax shelters (eg ISA) to do this as you will then be liable for tax when you drawdown the SIPP.

NoMore

Mutton_Geoff said:

pterri said:

Sound advice, I’ll be taking some of my ISA and popping it into my SIPP this year before I retire next tax year. 

Be careful taking savings from tax shelters (eg ISA) to do this as you will then be liable for tax when you drawdown the SIPP.

Its only bad if you are going to withdraw from the SIPP at a higher rate of tax than you contribute at (which is very rare) for most people, you can get at least 6.25% gain by moving your ISA into Pension.

michaels

Mutton_Geoff said:

michaels said:

If you haven't yet triggered the mpaa it might be worth making a pension contribution this year equal to your entire salary earned this year as you will get tax relief on all of it and even if you pay basic rate getting it back out, with the 25% TFLS you will still be 5% up on the deal - or more if you have paid any higher rate tax this year.

Also some are taking their full TFLS this year before the autumn budget just in case the rules change.

What I said a few posts back ;-)

Mutton_Geoff said:

If you have any savings, you could invest a total of your relevant earnings (generally your total pay whilst you were working) which will give you an effective refund of your income tax in the last year as well as additional 25% tax free cash on drawdown. Assumes you haven't exceeded the LTA etc.

It is worth taking advantage of these tax opportunities even though you may not wish to draw your pension yet

Apologies, missed that.  Hopefully better twice than not at all....

sgx2000

Congrats

I did it 3 weeks ago......

Now I just need to go back to work for a rest......lol

trevjl

michaels said:

If you haven't yet triggered the mpaa it might be worth making a pension contribution this year equal to your entire salary earned this year as you will get tax relief on all of it and even if you pay basic rate getting it back out, with the 25% TFLS you will still be 5% up on the deal - or more if you have paid any higher rate tax this year.

Also some are taking their full TFLS this year before the autumn budget just in case the rules change.

No I haven't triggered that yet, so yes I intend to do so. Awaiting sale of late mums retirement flat so that is where as much as possible of that will be going.

Good point about TFLS, although I took £30K last year for a full blown grandkids and all holiday (in case the treatment didn't go so well), there is still about  £45 I could take. Certainly worth thinking about as without getting political, I don't trust this clown at all.

Mutton_Geoff

trevjl said:

michaels said:

If you haven't yet triggered the mpaa it might be worth making a pension contribution this year equal to your entire salary earned this year as you will get tax relief on all of it and even if you pay basic rate getting it back out, with the 25% TFLS you will still be 5% up on the deal - or more if you have paid any higher rate tax this year.

Also some are taking their full TFLS this year before the autumn budget just in case the rules change.

No I haven't triggered that yet, so yes I intend to do so. Awaiting sale of late mums retirement flat so that is where as much as possible of that will be going.

Good point about TFLS, although I took £30K last year for a full blown grandkids and all holiday (in case the treatment didn't go so well), there is still about  £45 I could take. Certainly worth thinking about as without getting political, I don't trust this clown at all.

Never plan on speculation. Work with the rules as they are now and adjust as you go along.

Anyone remember a poster here called "Crashy"?