That crept up on me ..

999frogs

Brie said:

Will the DB pension allow you to back date 51 months?  Wasn't an option with mine even though they gave me incorrect info about my NRD.  Then again the amount I was paid monthly did increase due to not being paid.

That's what they said earlier when I spoke to them. I was panicking a bit realising I could have been drawing it and thinking it might have been "disappeared" by them !

999frogs

Silvertabby said:

Have you actually checked your State pension forecast?  It's just that a lot of people are still making the huge mistake of assuming that 35 full (financial) years of NI contributions = the full new State pension.

I have here: https://www.tax.service.gov.uk/check-your-state-pension/account

Sarahspangles

If you stopped working before 6 April and commenced the DB pension at some point in the new tax year you would have the first £12,570 tax free.

What does this mean?

Approx 6k pa (less state pension deduction)

FIREDreamer

999frogs said:

FIREDreamer said:

999frogs said:

1. Draw or don't draw on the final pension, big tax hit on first month (ie 51 months worth)

Why is there a big tax hit?

5o odd months of 500pcm is >£25k which (if I drew now) would be a 40% bill. Think I'll wait until I'm retired, at least it will only be 20%. As it's backdated pension payments rather than a lump, I don't expect it would come under the taxfree bit

You didn’t make it clear in your first post so the comment didn’t really make sense without including your age which must be 60 + 51/12 = 64.25 (maybe).

If that is your DB scheme methodology, rather unusual in my experience, then the longer you defer, the worse the problem gets.

EDIT: you can alleviate this going forwards by increasing your DC / SIPP pension contributions (but unlikely to help for month 1 of the DB).

Albermarle

1. As each plan hits NRD (except the final salary one) - take up to 25% of the combined pot as a tax free drawdown. Depending on plan rules, this could be spread over a number of years

Presumably all these other pensions are Defined Contribution ( DC ) ones where you just have basically a pot of money? If so then normally there is no NRD for these types of plans. You can start to withdraw from them at 55. ( often the pensions will have a nominal retirement date in their system for you, usually 65, but you can usually just ignore that)
Some older plans can be less flexible/have less options on the ways to withdraw. In which case it is usually better to transfer them to a more modern product.
Of course without knowing the details of each of these pensions , it is difficult to be 100% sure.