Small pension - options
Marine_life
Posts: 1,059 Forumite
My wife has a small, old pension with standard life (value c. 20,000).
The pension start date is now only one year away (when she is 55) and we need to think about options.
We don't need the money (either the lump sum or the pension) and want to make sure we take the tax efficient route.
Is the best thing to simply defer to a later date or something else.
We won't have any other pension income in the year although other income sources will almost certainly take us into the higher rate.
Thoughts?
The pension start date is now only one year away (when she is 55) and we need to think about options.
We don't need the money (either the lump sum or the pension) and want to make sure we take the tax efficient route.
Is the best thing to simply defer to a later date or something else.
We won't have any other pension income in the year although other income sources will almost certainly take us into the higher rate.
Thoughts?
Money won't buy you happiness....but I have never been in a situation where more money made things worse!
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Comments
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Most tax efficient would be to defer, for ever. No tax will whatsoever will need to be paid then.
Will income reduce to basic rate level in the future?0 -
Dazed_and_confused wrote: »Will income reduce to basic rate level in the future?
Unlikely as we will have investment income and other pensions that will take us over the threshhold.Money won't buy you happiness....but I have never been in a situation where more money made things worse!0 -
She could either leave it all alone, or take the TFLS and leave the rest alone, eventually to be bequeathed to whomsoever she likes. That's efficient from the point of view of IHT. It would also be emergency backup in case things don't go to plan and she does become a basic rate payer.Free the dunston one next time too.0
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