Prudential huge mistake who's accountable...

Aretnap

noitsnotme said:

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 

Here’s some figures to ponder.  Let’s say your pension pot is £500,000.  

£125,000 of that will come to you tax free (this is the lump sum most other people refer to).

Even without any other income, withdrawing the full £500k in one go would see you paying £154,953 in tax, none of which you could claim back.

As you’re working so have other income, the tax would be higher than that.

Put your real figures in here to see what tax you will pay - https://www.direct.aviva.co.uk/myfuture/PensionWithdrawalTaxCalculator

And this is probably long past the point where it will do any good, but for avoidance of doubt: 

Because of the way tax codes and PAYE work, the pension provider will sometimes deduct more than £154,953 in tax from the lump sum payment. When you hear people talk about "claiming the tax back", they just mean claiming back this overpayment. You cannot claim back the £154,953 - that is gone forever.

You can if course reduce the £154,953 enormously by withdrawing the money gradually over a number of years. However some people apparently think that "having it all in one place" is with paying a mortgage-sized amount off money to achieve. There's nowt so queer as folk I guess.

pterri

On the plus side, the additional income tax that is being gifted to the state will help pay for the triple lock. Very generous offer. 

artyboy

The government thanks you for your assistance in plugging the black hole...

R_Reeves

Thank you Francesco

MallyGirl

Please can that be the last comment in the style of 'thank you for contributing to the public coffers by paying unnecessary tax'. 

LeafGreen

MallyGirl said:

Please can that be the last comment in the style of 'thank you for contributing to the public coffers by paying unnecessary tax'. 

I can't believe someone has gone to the trouble of creating a fake account to do that!

artyboy

LeafGreen said:

MallyGirl said:

Please can that be the last comment in the style of 'thank you for contributing to the public coffers by paying unnecessary tax'. 

I can't believe someone has gone to the trouble of creating a fake account to do that!

Well, that's one possibility...

bjorn_toby_wilde

artyboy said:

LeafGreen said:

MallyGirl said:

Please can that be the last comment in the style of 'thank you for contributing to the public coffers by paying unnecessary tax'. 

I can't believe someone has gone to the trouble of creating a fake account to do that!

Well, that's one possibility...

I think LeafGreen is referring to the post before Mallygirl's where someone has created an account in the name R_Reeves

LeafGreen

bjorn_toby_wilde said:

artyboy said:

LeafGreen said:

MallyGirl said:

Please can that be the last comment in the style of 'thank you for contributing to the public coffers by paying unnecessary tax'. 

I can't believe someone has gone to the trouble of creating a fake account to do that!

Well, that's one possibility...

I think LeafGreen is referring to the post before Mallygirl's where someone has created an account in the name R_Reeves

I was indeed!

Ibrahim5

It's amazing she has time to join us on the forum. I hope she doesn't start lecturing us about economic inactivity!