TFLS withdrawal before Autumn budget

artyboy

GunJack said:

Some people have just got too much money.....

Were you watching last night's Green Party party political broadcast by any chance 

Pat38493

Albermarle said:

Steve182 said:

I've decided to withdraw all of mine, and do a bit of recycling, well below the allowable limit, to take full advantage of the £268K allowance in case it's reduced, which I fear it will be.

Doesn't take too long to use the money sensibly, pay off mortgage, ISAs, a bit of pension recycling, investment in growth shares (sell before £3K CGT limit reached) etc etc

Just wondering if any others here are doing or considering the same?

If you read through the forum, you will see that it is a regular topic of discussion recently, as it was before the last budget.
The normal advice is not to make financial decisions based on rumours and speculation.
Especially when the sources are mainly anti Govt media outlets, prone to sensationalism and scaremongering.

There was an article in the Times yesterday from a pensions expert who has decided to take his TFC out before November to mitigate the risk that they will reduce the TFC allowance from £268K to £100K.

As it happens, I am planning to take out some TFC soon but I was waiting until after my employer informs my employer pension scheme that I am no longer working for them so I can transfer out the entire amount in one go.  This might be a tight timeline to get this done before 26th November though, especially if everyone else is trying to do the same.

However - am I not right in thinking that whenever the government did things like this in the past, anyone who has already exceeded the new available allowance but below the old allowance could apply for a "protection" of some kind?

He also pointed out by the way that if you do this, and then instead of reducing the pension TFC, the government abolishes or nerfs ISAs, you will be stuck with a lot of cash and no tax shelter for it, but he says he decided to take this risk anyway.

RogerPensionGuy

Pat38493 said:

Albermarle said:

Steve182 said:

I've decided to withdraw all of mine, and do a bit of recycling, well below the allowable limit, to take full advantage of the £268K allowance in case it's reduced, which I fear it will be.

Doesn't take too long to use the money sensibly, pay off mortgage, ISAs, a bit of pension recycling, investment in growth shares (sell before £3K CGT limit reached) etc etc

Just wondering if any others here are doing or considering the same?

If you read through the forum, you will see that it is a regular topic of discussion recently, as it was before the last budget.
The normal advice is not to make financial decisions based on rumours and speculation.
Especially when the sources are mainly anti Govt media outlets, prone to sensationalism and scaremongering.

There was an article in the Times yesterday from a pensions expert who has decided to take his TFC out before November to mitigate the risk that they will reduce the TFC allowance from £268K to £100K.

As it happens, I am planning to take out some TFC soon but I was waiting until after my employer informs my employer pension scheme that I am no longer working for them so I can transfer out the entire amount in one go.  This might be a tight timeline to get this done before 26th November though, especially if everyone else is trying to do the same.

However - am I not right in thinking that whenever the government did things like this in the past, anyone who has already exceeded the new available allowance but below the old allowance could apply for a "protection" of some kind?

He also pointed out by the way that if you do this, and then instead of reducing the pension TFC, the government abolishes or nerfs ISAs, you will be stuck with a lot of cash and no tax shelter for it, but he says he decided to take this risk anyway.

Reference the expert and experts in a few media outlets, I have high respect for these people, they follow the general rule of not crying wolf wolf. 

I'm surprised any expert has voiced pulling out TFLS due budget. 

I'm 99.99% sure me in retirement now that I should leave TFLS alone to hopefully cook.

But I've had enough of pension and too many changes, so I'm also this week pulling all TFLS out. 

I'll then fine tune SIPP, GIAs, annuities & various stuff hopefully making me feel more secure.

What a terrible situation. 

Pat38493

RogerPensionGuy said:

Pat38493 said:

Albermarle said:

Steve182 said:

I've decided to withdraw all of mine, and do a bit of recycling, well below the allowable limit, to take full advantage of the £268K allowance in case it's reduced, which I fear it will be.

Doesn't take too long to use the money sensibly, pay off mortgage, ISAs, a bit of pension recycling, investment in growth shares (sell before £3K CGT limit reached) etc etc

Just wondering if any others here are doing or considering the same?

If you read through the forum, you will see that it is a regular topic of discussion recently, as it was before the last budget.
The normal advice is not to make financial decisions based on rumours and speculation.
Especially when the sources are mainly anti Govt media outlets, prone to sensationalism and scaremongering.

There was an article in the Times yesterday from a pensions expert who has decided to take his TFC out before November to mitigate the risk that they will reduce the TFC allowance from £268K to £100K.

As it happens, I am planning to take out some TFC soon but I was waiting until after my employer informs my employer pension scheme that I am no longer working for them so I can transfer out the entire amount in one go.  This might be a tight timeline to get this done before 26th November though, especially if everyone else is trying to do the same.

However - am I not right in thinking that whenever the government did things like this in the past, anyone who has already exceeded the new available allowance but below the old allowance could apply for a "protection" of some kind?

He also pointed out by the way that if you do this, and then instead of reducing the pension TFC, the government abolishes or nerfs ISAs, you will be stuck with a lot of cash and no tax shelter for it, but he says he decided to take this risk anyway.

Reference the expert and experts in a few media outlets, I have high respect for these people, they follow the general rule of not crying wolf wolf. 

I'm surprised any expert has voiced pulling out TFLS due budget. 

I'm 99.99% sure me in retirement now that I should leave TFLS alone to hopefully cook.

But I've had enough of pension and too many changes, so I'm also this week pulling all TFLS out. 

I'll then fine tune SIPP, GIAs, annuities & various stuff hopefully making me feel more secure.

What a terrible situation. 

To be fair, he did say in the article that this was a personal decision and partly based on the fact that he is planning to start withdrawals soon, and he is not going to spend the money, just pull it out of the pension.  Therefore the only real losses will be any additional tax that he has to pay on unsheltered money.

LHW99

Pat38493 said:

RogerPensionGuy said:

Pat38493 said:

Albermarle said:

Steve182 said:

I've decided to withdraw all of mine, and do a bit of recycling, well below the allowable limit, to take full advantage of the £268K allowance in case it's reduced, which I fear it will be.

Doesn't take too long to use the money sensibly, pay off mortgage, ISAs, a bit of pension recycling, investment in growth shares (sell before £3K CGT limit reached) etc etc

Just wondering if any others here are doing or considering the same?

If you read through the forum, you will see that it is a regular topic of discussion recently, as it was before the last budget.
The normal advice is not to make financial decisions based on rumours and speculation.
Especially when the sources are mainly anti Govt media outlets, prone to sensationalism and scaremongering.

There was an article in the Times yesterday from a pensions expert who has decided to take his TFC out before November to mitigate the risk that they will reduce the TFC allowance from £268K to £100K.

As it happens, I am planning to take out some TFC soon but I was waiting until after my employer informs my employer pension scheme that I am no longer working for them so I can transfer out the entire amount in one go.  This might be a tight timeline to get this done before 26th November though, especially if everyone else is trying to do the same.

However - am I not right in thinking that whenever the government did things like this in the past, anyone who has already exceeded the new available allowance but below the old allowance could apply for a "protection" of some kind?

He also pointed out by the way that if you do this, and then instead of reducing the pension TFC, the government abolishes or nerfs ISAs, you will be stuck with a lot of cash and no tax shelter for it, but he says he decided to take this risk anyway.

Reference the expert and experts in a few media outlets, I have high respect for these people, they follow the general rule of not crying wolf wolf. 

I'm surprised any expert has voiced pulling out TFLS due budget. 

I'm 99.99% sure me in retirement now that I should leave TFLS alone to hopefully cook.

But I've had enough of pension and too many changes, so I'm also this week pulling all TFLS out. 

I'll then fine tune SIPP, GIAs, annuities & various stuff hopefully making me feel more secure.

What a terrible situation. 

To be fair, he did say in the article that this was a personal decision and partly based on the fact that he is planning to start withdrawals soon, and he is not going to spend the money, just pull it out of the pension.  Therefore the only real losses will be any additional tax that he has to pay on unsheltered money.

Yes, my OH had planned to begin taking enough TFLS to fill his / my ISA's in early 2026, repeating each financial year, to ensure it was all taken before age 75. We have decided that bringing the first installment forward will have no particular issues for us, so plan to do so shortly.

ali_bear

Quite likely that ISA allowances will be lowered and the cash ISA looks endangered. 



"an article in the Times yesterday from a fictional pensions expert who has decided to take his TFC out "

Fixed that for you.

Stop panicking over made up nonsense. 

RogerPensionGuy

Pat38493 said:

RogerPensionGuy said:

Pat38493 said:

Albermarle said:

Steve182 said:

I've decided to withdraw all of mine, and do a bit of recycling, well below the allowable limit, to take full advantage of the £268K allowance in case it's reduced, which I fear it will be.

Doesn't take too long to use the money sensibly, pay off mortgage, ISAs, a bit of pension recycling, investment in growth shares (sell before £3K CGT limit reached) etc etc

Just wondering if any others here are doing or considering the same?

If you read through the forum, you will see that it is a regular topic of discussion recently, as it was before the last budget.
The normal advice is not to make financial decisions based on rumours and speculation.
Especially when the sources are mainly anti Govt media outlets, prone to sensationalism and scaremongering.

There was an article in the Times yesterday from a pensions expert who has decided to take his TFC out before November to mitigate the risk that they will reduce the TFC allowance from £268K to £100K.

As it happens, I am planning to take out some TFC soon but I was waiting until after my employer informs my employer pension scheme that I am no longer working for them so I can transfer out the entire amount in one go.  This might be a tight timeline to get this done before 26th November though, especially if everyone else is trying to do the same.

However - am I not right in thinking that whenever the government did things like this in the past, anyone who has already exceeded the new available allowance but below the old allowance could apply for a "protection" of some kind?

He also pointed out by the way that if you do this, and then instead of reducing the pension TFC, the government abolishes or nerfs ISAs, you will be stuck with a lot of cash and no tax shelter for it, but he says he decided to take this risk anyway.

Reference the expert and experts in a few media outlets, I have high respect for these people, they follow the general rule of not crying wolf wolf. 

I'm surprised any expert has voiced pulling out TFLS due budget. 

I'm 99.99% sure me in retirement now that I should leave TFLS alone to hopefully cook.

But I've had enough of pension and too many changes, so I'm also this week pulling all TFLS out. 

I'll then fine tune SIPP, GIAs, annuities & various stuff hopefully making me feel more secure.

What a terrible situation. 

To be fair, he did say in the article that this was a personal decision and partly based on the fact that he is planning to start withdrawals soon, and he is not going to spend the money, just pull it out of the pension.  Therefore the only real losses will be any additional tax that he has to pay on unsheltered money.

Yes indeed, pulling out TFLS with no real needs for it, very against the general normal rules in my previous head.

I hold them pension experts in high regards and I'm surprised it's public. 

I had decided to pull out the max TFLS before these latest outputs due my own research and personal position. 

Pensions treatments and stability is just more and more messy IMHO. 

Pat38493

ali_bear said:

Quite likely that ISA allowances will be lowered and the cash ISA looks endangered. 



"an article in the Times yesterday from a fictional pensions expert who has decided to take his TFC out "

Fixed that for you.

Stop panicking over made up nonsense. 

The article was credited to a guy called Tom McPhail - there are plenty of references to the what appears to be the same guy who worked for Hargreaves for a long time, so if he is fictional, they have gone to a lot of effort to fake his identity.

ali_bear

OK well I didn't bother to read the article or to look him up. Still doesn't mean you should take what he says as gospel. 

RogerPensionGuy

ali_bear said:

OK well I didn't bother to read the article or to look him up. Still doesn't mean you should take what he says as gospel. 

However, this fellow is very very highly regarded in the pension world, I would be very happy if he was the minister for pensions. 

A very strange situation IMHO. 

I'm very surprised at the publicity as we all know, taking out TFLS is a pretty drastic ploy unless its very close to the plan or unexpectedly required for needs or whatever. 

This 268 TFLS is just a hassle and stress, just like the LTA and they were closely linked, if my car behaved like pension rules being unreliable, I would use the bus. What a mess.