25% lump sum - pension draw down

dbretired

There's been a lot of rumours about this being reduced substantially. I am approaching 70 so have  chewed through my  savings on the  basis that I would let my pension grow. Now I  am worried I  might have made  a poor  decision! Any suggestions. 

Linton

There are many threads on this forum about the topic, perhaps you may wish to look at a few..  The consensus seems to be that it is extremely unlikely because it would decrease the incentive for people to put money into their pensions which is very much contrary to the objectives and actions of the governments of both parties over many years.

Sarahspangles

dbretired said:

There's been a lot of rumours about this being reduced substantially. I am approaching 70 so have  chewed through my  savings on the  basis that I would let my pension grow. Now I  am worried I  might have made  a poor  decision! Any suggestions. 

Don’t panic and don’t read ill informed Press speculation? People are unlikely to feel better off after the budget but the majority are waiting to see what happens.

JoeCrystal

Sarahspangles said:

dbretired said:

There's been a lot of rumours about this being reduced substantially. I am approaching 70 so have  chewed through my  savings on the  basis that I would let my pension grow. Now I  am worried I  might have made  a poor  decision! Any suggestions. 

Don’t panic and don’t read ill informed Press speculation? People are unlikely to feel better off after the budget but the majority are waiting to see what happens.

I am gutted that there seem to be no speculations about improving the retirement provision of lowly paid employees. The current "speculations" I am seeing is that the Chancellor is giving up ideas on having flat tax relief as it is too complex to deal with the impacts relating to DB pension schemes and the fact it would be unfair for millions of teachers, nurses, and public sector workers to pay more taxes.

So, nothing new for us then!  I hoped to see 30% tax relief for my pension contributions!  :'(

Albermarle

dbretired said:

There's been a lot of rumours about this being reduced substantially. I am approaching 70 so have  chewed through my  savings on the  basis that I would let my pension grow. Now I  am worried I  might have made  a poor  decision! Any suggestions. 

Stop reading politically motivated rumours, suggesting things that are very unlikely to happen.

Dazed_and_C0nfused

JoeCrystal said:

Sarahspangles said:

dbretired said:

There's been a lot of rumours about this being reduced substantially. I am approaching 70 so have  chewed through my  savings on the  basis that I would let my pension grow. Now I  am worried I  might have made  a poor  decision! Any suggestions. 

Don’t panic and don’t read ill informed Press speculation? People are unlikely to feel better off after the budget but the majority are waiting to see what happens.

I am gutted that there seem to be no speculations about improving the retirement provision of lowly paid employees. The current "speculations" I am seeing is that the Chancellor is giving up ideas on having flat tax relief as it is too complex to deal with the impacts relating to DB pension schemes and the fact it would be unfair for millions of teachers, nurses, and public sector workers to pay more taxes.

So, nothing new for us then!  I hoped to see 30% tax relief for my pension contributions!  :'(

Not life changing and not strictly changing their pension provision but every little helps 🙃.

https://www.gov.uk/government/publications/low-earners-anomaly-pensions-relief-relating-to-net-pay-arrangements

JoeCrystal

Dazed_and_C0nfused said:

Not life changing and not strictly changing their pension provision but every little helps 🙃.

https://www.gov.uk/government/publications/low-earners-anomaly-pensions-relief-relating-to-net-pay-arrangements

Indeed! I almost forgotten about that!  And yes, every little helps! 

bjorn_toby_wilde

Ironic that the Telegraph ran a story about someone “losing £270,00” by panicking and withdrawing pension ahead of the budget (I couldn’t read it as it’s behind a paywall) given that they have almost daily articles filled with exactly the speculation that drives this.

ali_bear

The Torygraph is officially Britain's worst newspaper. 

vacheron

bjorn_toby_wilde said:

Ironic that the Telegraph ran a story about someone “losing £270,00” by panicking and withdrawing pension ahead of the budget (I couldn’t read it as it’s behind a paywall) given that they have almost daily articles filled with exactly the speculation that drives this.

It was a shockingly bad clickbait headline (especially for the Telegraph).

IIRC the person had cashed in all his 25% TLFS leaving him "Potentially" £11K per year worse off, which, over 24 YEARS, "could" result in him being "up to" £270,000 worse off. 🤦‍♂️

Dazed_and_C0nfused

vacheron said:

bjorn_toby_wilde said:

Ironic that the Telegraph ran a story about someone “losing £270,00” by panicking and withdrawing pension ahead of the budget (I couldn’t read it as it’s behind a paywall) given that they have almost daily articles filled with exactly the speculation that drives this.

It was a shockingly bad clickbait headline (especially for the Telegraph).

IIRC the person had cashed in all his 25% TLFS leaving him "Potentially" £11K per year worse off, which, over 24 YEARS, "could" result in him being "up to" £270,000 worse off. 🤦‍♂️

Terrible journalism, do they not realise over 50 years they could (🙄) be half a million pounds worse off.