Prudential huge mistake who's accountable...

Francesco28

Ok thx for all replies...im aware of the tax that im paying and like i said before...i see it as government taking back what they gave me over 37 years...i dont live above my means have no debt and no house to pay for its all good for me...just posted originally about Pru mistakes and ive been tutored about me taking my full pot just like 300,000 people have just the last year.
Thx again 

QrizB

Francesco28 said:

Ok thx for all replies...im aware of the tax that im paying and like i said before...i see it as government taking back what they gave me over 37 years..

The thing is, you'll be paying 40% (and possibly 45%) tax on some of it.

Even if you split it over two years, taking half now and half after April 2025,  there's a good chance you'd pay thousands of pounds less tax.

Ciprico

They "gave" you 20% over the years

You'll probably end up paying 40% tax on a lot of your withdrawl.

With a bit of planning you can pay a combination of zero and/or 20%

But, paying tax is noble so why not pay more than you have to and be nobler...

bjorn_toby_wilde

Why can’t you just take what you need this year then take the rest in subsequent years?  Save yourself a load of 40 or 45% tax.

People this board aren’t trying to “school” you. They’re trying to help you make the best decision.

Ayr_Rage

If possible stop the withdrawal and get some professional advice as soon as you can.

You'll likely be paying far more tax if you take the whole pot out than you ever got in relief with zero chance of claiming any back.

marathonic

In normal circumstances, I'd agree with most others on this thread.

But when a user repeatedly shoots down the advice given and says things like "Obviously was a mistake asking the original question as you all seem to know more and what's best for me" and seems to think they know more than the combined wisdom of the forum, I say let them proceed and let them come back complaining when they realise that, not only will they not receive tax back by completing a simple form, but they'll have significant further tax to pay.

When they come back complaining, we can direct them back to this thread.

HedgehogRulez

If you’re desperate to leave the pru you can transfer your pension out to another provider without paying tax at 40, 45% on your withdrawal 

Francesco28

Thank you for all replies, originally posting to complain about Prudential to see if any have experienced what i have but i do understand everyone's opinions more negative about my decision, it is what it is, I've decided like many do to take the lump sum..Like i said 37 years paying into a pension that a lot of people never had...Im glad its ended and will enjoy the next part of my life...Thx all 

eskbanker

Francesco28 said:

i do understand everyone's opinions more negative about my decision, it is what it is, I've decided like many do to take the lump sum.

At the risk of flogging a long-dead horse, many decide to take a tax-free lump sum from their pensions, which is the normal use of the term, rather than signifying a total withdrawal of the entire pot.

Aretnap

Francesco28 said:

Thank you for all replies, originally posting to complain about Prudential to see if any have experienced what i have but i do understand everyone's opinions more negative about my decision, it is what it is, I've decided like many do to take the lump sum..Like i said 37 years paying into a pension that a lot of people never had...Im glad its ended and will enjoy the next part of my life...Thx all 

Francesco28 said:

Like i said 37 years paying into a pension that a lot of people never had...Im glad its ended and will enjoy the next part of my life...Thx all 

Feels like a bit of a waste to spend 37 years paying into a pension only to give potentially 40% or even 45% of it to the taxman when you don't have to. But <shrugs> it's your money - at least whatever fraction hasn't just become the government's money.