What to do?

ali_bear

Your partner has a full state pension coming soon, that will use up most of the tax free allowance once he is receiving it. He also has a couple of small pension pots of 14k and 7.4k.

I think the advice would be to leave these pots invested for the time being, possibly consolidate them although that is not really necessary. And withdraw from them when you need the extra cash. You would want to do that in a tax-efficient way, knowing that the first 25% is tax free and the rest is taxable income. 

Is there a gap between ending work and receiving the state pension? 

Albermarle

Just not sure which way to turn...or just leave it alone, and can you if you retire?

For pensions like Nest and very likely the Aegon one , you can take them from age 55, or never take them ( and leave them to someone) or at any age or period between age 55 and death.

Sometimes it is not possible to withdraw from your current workplace pension, whilst there are still active contributions from your employer going into it, but that is the only restriction really.

You might want to consider merging the two pensions before starting to withdraw any money, as that will simplify administration and reduce any possible tax problems. It is normally easy to do . For example.
Can I Transfer Other Pensions into Nest? | Nest pensions

Petula

ali_bear said:

Your partner has a full state pension coming soon, that will use up most of the tax free allowance once he is receiving it. He also has a couple of small pension pots of 14k and 7.4k.

I think the advice would be to leave these pots invested for the time being, possibly consolidate them although that is not really necessary. And withdraw from them when you need the extra cash. You would want to do that in a tax-efficient way, knowing that the first 25% is tax free and the rest is taxable income. 

Is there a gap between ending work and receiving the state pension? 

A gap, yes.  His end date with his current job has been moved to July or August (and could possibly move yet again - employers are working with him to keep him employed as long as possible but the business is being sold).  He will turn 66 at the beginning of October.  He would probably want to consolidate the two simply because it would be easier, that's the thinking 

Petula

Albermarle said:

Just not sure which way to turn...or just leave it alone, and can you if you retire?

...You might want to consider merging the two pensions before starting to withdraw any money, as that will simplify administration and reduce any possible tax problems. It is normally easy to do . For example.
Can I Transfer Other Pensions into Nest? | Nest pensions

We'll be looking into merging this weekend as I think it will simplify things. 

ali_bear

Petula said:

ali_bear said:

Is there a gap between ending work and receiving the state pension? 

A gap, yes.  His end date with his current job has been moved to July or August (and could possibly move yet again - employers are working with him to keep him employed as long as possible but the business is being sold).  He will turn 66 at the beginning of October.  

That gap presents an opportunity to take some pension income out of the fund without paying tax on it. It is a little complicated to work out because half of the gap is in one tax year and the other half in the next tax year. I am assuming state pension age is 67? 

Sarahspangles

ali_bear said:

Petula said:

ali_bear said:

Is there a gap between ending work and receiving the state pension? 

A gap, yes.  His end date with his current job has been moved to July or August (and could possibly move yet again - employers are working with him to keep him employed as long as possible but the business is being sold).  He will turn 66 at the beginning of October.  

That gap presents an opportunity to take some pension income out of the fund without paying tax on it. It is a little complicated to work out because half of the gap is in one tax year and the other half in the next tax year. I am assuming state pension age is 67? 

OP says that he’s 66 this October, the current State Pension age. It starts its next rise, to 67, for those turning 66 after April 6th next year.

ali_bear

Thanks Sarah. 
Sorry OP please disregard my last post.