TFLS withdrawal before Autumn budget

Albermarle

RogerPensionGuy said:

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. 

Then again if you fill up your car, you have to pay a lot of tax. If you fill up your pension, the Govt gives you tax back.

Although the changing rules are a nuisance, we should not lose sight of the fact that the pension tax regime overall is still quite advantageous. 

Pat38493

RogerPensionGuy said:

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. 

To some extent that depends what you are going to do with it and how much there is.

If you remove your TFLS from your pension and invest it in the exact same way outside of the pension, the end results will be identical, other than tax implications.  Often the comments about "do not take the TFLS unless you need the money" are partly based on an assumption that the person will simply spend it once it's withdrawn.

Of course if you draw out a £268K tfls all in one go and you are keeping the money, you are definitely going to have some tax headaches so it depends on how much you are talking about.

RoysV

Pat38493 said:

RogerPensionGuy said:

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. 

To some extent that depends what you are going to do with it and how much there is.

If you remove your TFLS from your pension and invest it in the exact same way outside of the pension, the end results will be identical, other than tax implications.  Often the comments about "do not take the TFLS unless you need the money" are partly based on an assumption that the person will simply spend it once it's withdrawn.

Of course if you draw out a £268K tfls all in one go and you are keeping the money, you are definitely going to have some tax headaches so it depends on how much you are talking about.

Must admit I bet there'd be a lot of people, me included, who would love to have that headache

kinger101

RoysV said:

Pat38493 said:

RogerPensionGuy said:

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. 

To some extent that depends what you are going to do with it and how much there is.

If you remove your TFLS from your pension and invest it in the exact same way outside of the pension, the end results will be identical, other than tax implications.  Often the comments about "do not take the TFLS unless you need the money" are partly based on an assumption that the person will simply spend it once it's withdrawn.

Of course if you draw out a £268K tfls all in one go and you are keeping the money, you are definitely going to have some tax headaches so it depends on how much you are talking about.

Must admit I bet there'd be a lot of people, me included, who would love to have that headache

But the thread and the forum in general is about making the best of one's own financial circumstances.  Not coveting their neighbour's Equus africanus asinus.  I'm sure there are forums for that, but make sure you Google carefully. 

Steve182

My problem has just got a bit more complex. In one pension with TFLS protection I've just been advised I can withdraw a TFLS of £240K which counts as only £120K towards my TFLS allowance, but needs to be done in one hit. This % is a lot more than I was advised a few years ago and I think is associated with removal of LTA .  I've already done £60K in another pension without TFLS protection. £300K or more would take some time to put into tax shelters. But I'm feeling seriously exposed approaching November with potentially a further <£330K tax free available to withdraw and a chancellor looking to make up the coffers....

bjorn_toby_wilde

RogerPensionGuy said:

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. 

You keep mentioning a mess, unreliable pension rules, instability and a terrible situation but nothing has changed.  The right wing press are doing their annual dance. Surely you’re just panicking based entirely on speculation?

Remember the lady who withdrew it all last year then made a huge fuss in the Telegraph because the provider wouldn’t let her put it all back again?

Steve182

RoysV said:

Pat38493 said:

RogerPensionGuy said:

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. 

To some extent that depends what you are going to do with it and how much there is.

If you remove your TFLS from your pension and invest it in the exact same way outside of the pension, the end results will be identical, other than tax implications.  Often the comments about "do not take the TFLS unless you need the money" are partly based on an assumption that the person will simply spend it once it's withdrawn.

Of course if you draw out a £268K tfls all in one go and you are keeping the money, you are definitely going to have some tax headaches so it depends on how much you are talking about.

Must admit I bet there'd be a lot of people, me included, who would love to have that headache

I've been saving into my pension, salary sacrificing and depositing director's renumeration for two decades. I live in a 3 bedroom house and my kids go to state schools. I don't go holidaying in Florida or Barbados. My friend have Harleys, Astons and Porches while I have a company car and go fishing in Scotland on my holidays,

The men that work for me start work at 7.30 but finish at 4.00. I also start at 7.30 but finish at 7.30

That's why I have a ~£1m retirement pot.

DRS1

Steve182 said:

My problem has just got a bit more complex. In one pension with TFLS protection I've just been advised I can withdraw a TFLS of £240K which counts as only £120K towards my TFLS allowance, but needs to be done in one hit. This % is a lot more than I was advised a few years ago and I think is associated with removal of LTA .  I've already done £60K in another pension without TFLS protection. £300K or more would take some time to put into tax shelters. But I'm feeling seriously exposed approaching November with potentially a further <£330K tax free available to withdraw and a chancellor looking to make up the coffers....

What tax shelters did you have in mind?  Just an ISA or this sort of thing
Still more tax hikes to come? Where could investors find tax relief?
If so I would say they are very risky.

You may be better sticking as much as you can in Premium Bonds and putting the rest in low coupon short dated gilts.

RogerPensionGuy

bjorn_toby_wilde said:

RogerPensionGuy said:

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. 

You keep mentioning a mess, unreliable pension rules, instability and a terrible situation but nothing has changed.  The right wing press are doing their annual dance. Surely you’re just panicking based entirely on speculation?

Remember the lady who withdrew it all last year then made a huge fuss in the Telegraph because the provider wouldn’t let her put it all back again?

I'm not panicking. 

I think the 268K TFLS will stay, if they change, tinker or taper TFLS or other pension components I'll guess they will make up even more protections making pensions more fun.

I've just decided to remove my full TFLS as I feel it's appropriate for me. 

Had the current government made a no change statement on the 268 like they did on keeping the tripple lock, then I probably wouldn't of removed it, so my risk/reward & hassle feelings just decided to to pull the plug and use cash appropriately.