Retire in March or April

Ducatiandy

Hi, I’m in a DB final salary scheme with attached DC scheme and allowable AVC’s . I’m currently looking at which is the better to do retire at end of tax year or start of new. I currently earn £80k and would usually have some annual allowance left. I can load my last weeks pay with some benefits such as banked and cashed holidays which would take my last weeks pay upto £20k and can them pay this into the DC / avc and get tax relief before the whole lot is brought back into the DB scheme at point of retirement. 

Which month would be better? Most colleagues go in April (I don’t plan on working again but you never know). After watching a few videos and seeing one by James Shack I’m not sure how colleagues get around the max you can pay in part the way through a year is your  full pay so if you earn £5k a month and go in April the most you could pay in is £5k but they go over with the loaded last weeks benefits? Many thanks

Ducatiandy

Doh just realised after posting that the final week is still classed as wages

ali_bear

My take on this is to use up the next years tax free allowance and then go, June-ish? 

But that suits me, living off savings for a while before starting to draw the pension income later, possibly in the next tax year. Leaving me up to 18 months to decide to go back into work, if I chose to, without triggering the MPAA lower limit in that time. And not losing out on any years tax free allowance. 

Ducatiandy

ali_bear said:

My take on this is to use up the next years tax free allowance and then go, June-ish? 

But that suits me, living off savings for a while before starting to draw the pension income later, possibly in the next tax year. Leaving me up to 18 months to decide to go back into work, if I chose to, without triggering the MPAA lower limit in that time. And not losing out on any years tax free allowance. 

I think I’m a little different as mines a DB scheme  so I can take it and as my DC funds the max PCLS and in effect I’m am not drawing on any taxed part I don’t trigger the MPAA anyway?

so I don’t say much benefit either way, except if I worked again?