Budget 25% tax free

scotslad

Does anyone think that Labour will do anything with the 25% tax free element on pensions.

I have a pot of over £700000 and am 55 in April.

Am terrified they will pull the rug from under me as all my plans hinge on being able to access my lump sum in April.

someone please reassure me

Dazed_and_C0nfused

Why do you you want to take the TFLS up front so young, and not as part of each withdrawal?

MallyGirl

scotslad said:

Does anyone think that Labour will do anything with the 25% tax free element on pensions.

I have a pot of over £700000 and am 55 in April.

Am terrified they will pull the rug from under me as all my plans hinge on being able to access my lump sum in April.

someone please reassure me

We will all find out on budget day - before then anything you read is speculation or rumour.

german_keeper

MallyGirl said:

scotslad said:

Does anyone think that Labour will do anything with the 25% tax free element on pensions.

I have a pot of over £700000 and am 55 in April.

Am terrified they will pull the rug from under me as all my plans hinge on being able to access my lump sum in April.

someone please reassure me

We will all find out on budget day - before then anything you read is speculation or rumour.

And there is plenty of speculation and rumour on lots of other recent threads on this forum!!

scotslad

Dazed_and_C0nfused said:

Why do you you want to take the TFLS up front so young, and not as part of each withdrawal?

Pay off mortgage and car. The take a smaller drawdown.

Unless someone can suggest a better way as i am not very clued up.

Need 2k a month without the mortgage and car payments for a happy retirment.

Pot is 730k

dunstonh

Does anyone think that Labour will do anything with the 25% tax free element on pensions.

I think any of the dozen or so budget threads that already exist would give you that answer.

Moonwolf

scotslad said:

Dazed_and_C0nfused said:

Why do you you want to take the TFLS up front so young, and not as part of each withdrawal?

Pay off mortgage and car. The take a smaller drawdown.

Unless someone can suggest a better way as i am not very clued up.

Need 2k a month without the mortgage and car payments for a happy retirment.

Pot is 730k

I would certainly look at drawing down UFPLS where each drawdown is 25% tax free.  It may not be for you but with a pot that size you would safely be able to draw down around  £22,000 a year of which £5,500 would be tax free and with a full new state pension that would give you an income of £30k a year after tax, roughly index linked, carrying on after your mortgage was paid off.

artyboy

dunstonh said:

Does anyone think that Labour will do anything with the 25% tax free element on pensions.

I think any of the dozen or so budget threads that already exist would give you that answer.

Given the size of my pension, I'm thinking I should have started at least 3 threads on this subject by now 

Sea_Shell

*Speculation alert*

Personally, I won't be surprised if it was capped at £100k.

Hopefully they leave the access ages/dates alone.

FIREDreamer

Sea_Shell said:

*Speculation alert*

Personally, I won't be surprised if it was capped at £100k.

Hopefully they leave the access ages/dates alone.

With protection for those with more than £400k in a pension at budget date or have existing protection.

Otherwise retrospective taxation which could be challenged.

westv

Only another 7 days.