Lifetime Allowance (LTA)

Bignroon · 10 September 2017 at 9:50AM

Marlot
Thank you for your reply
£42,532 from April 2017
I would like to take drawdown from age 58
The main reason is not for to get my hands on tax free cash but the ability to pass on to my family.

marlot · 10 September 2017 at 10:15AM

Bignroon wrote: »

Marlot
Thank you for your reply
£42,532 from April 2017
I would like to take drawdown from age 58
The main reason is not for to get my hands on tax free cash but the ability to pass on to my family.

That really is a decent pension. Don't forget, it will also be inflation linked.

I can understand your motivation, but it seems a very expensive way to get it. With lots of risk. The exception would be if you're in ill-health and not expecting to live long in retirement.

Your existing pension will probably have a mechanism where you can give up some of the pension in return for a tax-free sum. I'd recommend having a look at it. My pension is about a quarter of yours, but I can get a £76k tax free lump sum by giving up just under £4k a year of pension.

xylophone · 10 September 2017 at 11:06AM

I am still utterly flummoxed as to why options other than a transfer out were not discussed with the OP.

He is only 58 - I have known at least four cases where an index linked FS pension has been in payment for in excess of 35 years.

He does not indicate that he has any special circumstances ( reduced life expectancy/ no spouse etc).

If he is anxious to benefit his family he might have considered taking a PCLS and making immediate gifts (PET).

This could still have enabled him to draw a generous DB pension which would be topped up by state pension at SPA.

I wonder has he had a new state pension forecast?

Lifetime Allowance (LTA)

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free