Approaching retirement - best beginner tips?

MarlowMallard

If you are in a part-DB part-DC scheme, it is worth finding out if you can take most of the DC pot as tax-free lump at the point you trigger the DB.

I'm in USS and it can do this; under HMRC rules the max TFLS when you trigger DB is 6.66x annual pension (because 6.66 is 1/4 of 20 + 6.66); so if you take the standard pension + 3x lump , you can take another 3.66x out of DC tax-free, but only at the same time. Or you can reverse-commute the 3x lump into extra pension, and take 6.66x the larger pension out of DC, if the DC pot is large enough.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81867771#Comment_81867771

I think when a poster mentioned retrospective, they meant that if you had not claimed the higher rate relief in previous tax years, on the contributions you already made in those years, you could still do that. However as you did not contribute to a DC pension until now that is not relevant.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/81867975#Comment_81867975

He did indeed mean that! Interestingly when I did this for last tax year, I claimed mid-tax year and forward estimated my contributions. HMRC then returned all tax relief based on those estimates. This tax year no chance. I have to re-submit after end of this tax year providing full proof of all contributions. Fair enough I suppose, but an interesting change of approach.

BlackKnightMonty

why not start a salary sacrifice at a small amount a month, see how it works, see the mechanics of any employer contribution; see how you can instruct how the money is invested, and then when happy with all that adjust the sal sac if you so wish.