TFLS across DB & DC Pensions

bjorn_toby_wilde

Shadyocuk said:

GunJack said:

Secret2ndAccount said:

One of the holy grails of pension saving is if you can get tax relief on the way in, then pay zero tax on the way out. So, for many people, using the AVC to fund the PCLS is the way to go.

What a load of tosh!! That would mean you've got such a small pension you'd end up living pretty much on the breadline....even after the tfls, with full state pension, you'd be paying tax on pretty much all your private pension income.

Nice idea maybe, but the maths is well and truly flawed, especially in Ducati Andy's case as his DB is so big!!

The idea of pensions is that you've got enough income to support yourself in a reasonably comfortable manner, not scraping around the personal allowance..

You seem to have completely misunderstood the concept of using the AVC to fund the PCLS , a one off opportunity to take all (or upto what would have been the PCLS) of the AVC tax free and keep the fully DB pension. Rather than being a load of tosh its something that most of us would love to have the chance to do , especially if you where likely to be a higher rate tax payer.

I may be wrong but I don’t think GunJack was arguing about using the AVC to fund the PCLS. Just the holy grail of paying no tax on the way out.

That’s why they only quoted that paragraph