Cashing in pension

kempiejon

Ah a little something to help the government's need for cash, I applaud such altruists helping with extra cash, making up for my own short comings in that department.

Marcon

omg29 said:

I want to cash in my whole pension( dont worry i have sufficient other pensions to fund me later on). My fund is £118k, i understand that i will have to pay the highest tax band , as my wages are currently 332k per year. How does the tax work out, so i pay  tax 75%on the pension, and higher tax on my wages

I think you are the one who needs to worry. Looking at your previous posts you and your family have clearly had far more to contend with than many others, and it's not at all clear to me whether you've grasped how much pension you will need to 'fund you later on'.

What you are proposing really isn't sensible in terms of the tax treatment, but there may be other valid reasons for voluntarily deciding to take a huge tax hit which you don't seem particularly well equipped to sustain financially.

I'm not normally a fan of probing why people want to do things, but in this case would you consider sharing why you want to cash in your whole pension now? I'm not asking to be intrusive, but just wondering if people posting here might be able to suggest other ways to achieve your objectives without doing so much damage to your tax position.

QrizB

Marcon said: by

I'm not normally a fan of probing why people want to do things, but in this case would you consider sharing why you want to cash in your whole pension now? I'm not asking to be intrusive, but just wondering if people posting here might be able to suggest other ways to achieve your objectives without doing so much damage to your tax position.

It would also help to know more about these "other pensions", to give some context to the wish to cash one in.

LHW99

Also if you take even 1p of taxable income from a pension you are restricted to £10,000pa  total contributions for ever more.

May not be an issue now - but at some time in the future could be

DullGreyGuy

Exodi said:

If you're already deep into the additional rate band (as you would be earning £332k per year!), then you'd pay 45% on everything outside the LSA.

Is £332k a typo by the way? Aside from being astronomically high that very few in the UK would earn outside of CEO's, footballers and plastic surgeons

Many more than those will be on that sort of income. Its about the top 0.4% so circa 125,000 in the UK