Should I cash in my pension now or wait 2 years.

Pollythecatgirl

I am retired and drawing my state pension and two defined benefit pensions.  However, before I retired my then employer used the NEST pension scheme which we both paid into.  I have kept it going since and pay in the maximum amount each year to get the tax relief.  I have it invested in the highest risk investment they do.  The plan was to leave it until I reach 75 which is in 2 years time and cash it in.

Should I dontinue to leave it or should I cash it in now?  I am 73.

Dazed_and_C0nfused

Pollythecatgirl said:

I am retired and drawing my state pension and two defined benefit pensions.  However, before I retired my then employer used the NEST pension scheme which we both paid into.  I have kept it going since and pay in the maximum amount each year to get the tax relief.  I have it invested in the highest risk investment they do.  The plan was to leave it until I reach 75 which is in 2 years time and cash it in.

Should I dontinue to leave it or should I cash it in now?  I am 73.

Will taking it all in one go move you into a higher tax band?

Do you know how the fund(s) you have invested in will do over the next 2 years 🤔.  If you don't know do you think someone else does?

Scarum

In addition to above, I would ask, are you comfortable on your current pension income?

I'm thinking of the option of going down the annuity route for this NEST egg.

Phossy

Whether you take it now, in 2 years or 10 years really depends on what you want to do with it/ whether you need it; the original plan doesn't matter. I have a similar intention to keep my personal pension  invested in higher risk equities and live off my DB/ State Pension, drawing down on my personal pension only for treats or emergencies. Who knows what I'll think in a few years time.

Gary1984

I'd say take it out gradually up to the higher rate tax band each year and then get it into an ISA to shelter it from tax. Taking it out as a lump sum may move you into a higher tax band and you'll end up keeping less of it. Also unless you have plans to spend it you'll need to find a home for it once it's withdrawn and it may exceed your ISA allowances.

dunstonh

The plan was to leave it until I reach 75 which is in 2 years time and cash it in.

What was happening at age 75 that required you to cash in the pension?  i.e. was there spending planned that this money would be used for?
What is happening at age 73 and not 75 that you may think you need the money earlier?

Marcon

Pollythecatgirl said:

I am retired and drawing my state pension and two defined benefit pensions.  However, before I retired my then employer used the NEST pension scheme which we both paid into.  I have kept it going since and pay in the maximum amount each year to get the tax relief.  I have it invested in the highest risk investment they do.  The plan was to leave it until I reach 75 which is in 2 years time and cash it in.

Should I dontinue to leave it or should I cash it in now?  I am 73.

What are your objectives? You need to decide what suits your needs best and do that.

Albermarle

Are you planning to leave any inheritance to anybody?
Leaving unused pension pots can be quite tax efficient, depending on your exact circumstances.