Drawdown after lump sum .

shilts · 15 April 2018 at 2:45PM

After reading a similar thread about drawdown it got me thinking . I apologise if I am stating the obvious but upon retirement and having taken the 25% tax free lump sum if your drawdown amount and other income over the tax year falls below your personal allowance is this also tax free , thanks ?

Dox · 15 April 2018 at 2:55PM

Happily yes.

shilts · 15 April 2018 at 2:56PM

As I thought , thanks .

ProDave · 15 April 2018 at 3:44PM

Which is why I am planning to get all mine out by drawdown between "retiring" and state pension age, during which time I should be able to get it all out tax free. Once state pension starts as well as private pensions, those will put me back over the tax threshold, so the opportunity to avoid tax will be lost.

Linton · 15 April 2018 at 3:52PM

It can be worth deferring your SP to fully drawdown a D.C. pot at minimum tax with excess going into S&S ISAs. This also gives you extra inflation linked income which could be very useful in extreme old age.

shilts · 15 April 2018 at 7:47PM

Thanks for help .

Bobbyg77 · 1 May 2018 at 10:10AM

Hi I,m in the same position ,I have takern the 25% but my cash is sat earning nothing.avviva are charging 0.4 % and only paying 0.41%.what other options have I got .is there a savings or is a option that will not involve me paying any tax.
Thanks Bob

xylophone · 1 May 2018 at 6:49PM

Hi I,m in the same position ,I have takern the 25% but my cash is sat earning nothing.avviva are charging 0.4 % and only paying 0.41%.what other options have I got .is there a savings or is a option that will not involve me paying any tax.
Thanks Bob

The whole of your pension is now in cash?

You could transfer to HL SIPP and pay no fee for holding cash?

You are staying in cash because you want to draw down the income over only a couple of years?

If not, what are your plans for this pension?

How much is involved?

When do you wish to access it?

How old are you?

Over how may years are you hoping to draw an income?

What is your state pension/other pension/other income position?

Dazed_and_confused · 1 May 2018 at 9:28PM

Hi I,m in the same position ,I have takern the 25% but my cash is sat earning nothing.avviva are charging 0.4 % and only paying 0.41%.what other options have I got .is there a savings or is a option that will not involve me paying any tax.

Interest from (non ISA) savings accounts is all taxable however you can have upto £6,000 in savings interest which could all be taxed at a 0% tax rate. The exact amount depends on your other income from pensions, wages etc but if you don't get enough from these sources to pay tax then it is likely to be the full £6,000.

Audaxer · 1 May 2018 at 10:09PM

Bobbyg77 wrote: »

Hi I,m in the same position ,I have takern the 25% but my cash is sat earning nothing.avviva are charging 0.4 % and only paying 0.41%.what other options have I got .is there a savings or is a option that will not involve me paying any tax.
Thanks Bob

Surely it would be better earning interest even if some of that interest gets taxed, rather than earning nothing just so you don't pay tax?

Bobbyg77 · 2 May 2018 at 6:59AM

Ok I,m just over 61.the pot is worth over 50k.now fully retired.so taking out the money at the annual tax allowance rate ie 11.8 k per year.which without interest should last to 65 +.i would like to invest the money in a no risk savings in section ie.10 over 4 years,10 over3 years etc you see my plan .but what products are there .for a sip.

Drawdown after lump sum .

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