Combining company pensions

Linton

dont_use_vistaprint said:

dunstonh said:

i am retired and have no income other than interest savings currently and dont plan to work again  

Taking some of the 25% but no taxable whilst you have no income is wasteful.   You have £12570 personal allowance you can use from the taxable element until other incomes kick in.

Your way is going to cost you thousands of pounds in tax later on.

I disagree , it’s only wasteful if you pay tax in future years that could have been avoided.

if longer term you intend to live on income maxing  your personal & savings allowance + ISA interest and not pay tax then it’s not wasteful  to utilise the tax free sum in earlier years, even if you have no other income. Designing your life around future tax that may or may not be due is wasteful 

State Pension will use up most of your tax allowance so it is close to impossible to live a reasonable life in retirement without paying tax.

Cobbler_tone

I was going to say that using tax free allowances from DC pots is an issue mainly for those of a younger persuasion without other income. Clearly it makes sense to maximise your tax allowance while you can.
If you have a DB and/or state pension it becomes pretty much immaterial until you get near the 40% bracket. A lot of people will take their tax free cash and pay 20% for the rest of their days. 

Albermarle

dont_use_vistaprint said:

dunstonh said:

i am retired and have no income other than interest savings currently and dont plan to work again  

Taking some of the 25% but no taxable whilst you have no income is wasteful.   You have £12570 personal allowance you can use from the taxable element until other incomes kick in.

Your way is going to cost you thousands of pounds in tax later on.

I disagree , it’s only wasteful if you pay tax in future years that could have been avoided.

if longer term you intend to live on income maxing  your personal & savings allowance + ISA interest and not pay tax then it’s not wasteful  to utilise the tax free sum in earlier years, even if you have no other income. Designing your life around future tax that may or may not be due is wasteful 

In the advice given, there is an assumption that you ( or anybody in a similar position) will receive a state pension at some point, and that will take up most/all of your personal allowance.

dont_use_vistaprint

All sorted, thanks for the info. Took less than one week from making the request to combine , very impressed.