Retirement

[Crazyface]

One pension in place, the other one is still ongoing. I rang to check on progress and the nice bloke I spoke to said that he would resend the forms. Er wasn't it Einstein who said the definition of madness ........so he is to follow the resending with a tel call. I'll give it another two weeks. No rush.

 

[PNWokingham]

Spent a lot of time investing and going over rules for retirement as not sure when it will come but know i need more money to get where i would like to be at 57+ (now 53). Slightly concerned theat pension rules may be changed to negatively impact my plans for next tax year onwards - the 3 big ones that i hope won't come to fruition are 1. Removing marginal tax relief for investing into your pension for a flat rate; 2. Limiting the tax free amount that you are allowed to withrdraw; 3. Reducing the annual allowances for pensions and ISAs

 

[Crazyface]

I have'nt bothered with all that malarky. I''m taking the full amount possible as tax free. Then turning everything into a draw down. Then getting it as fast as possible (up to £12K tax free a year). Then I'm gonna spend it. I'm not yet 60. You never know when the bloke with the scythe will turn up. Three holidays booked this year. Massive one next year Canada + USA + somewhere TBD

 

[KenL]

I have'nt bothered with all that malarky. I''m taking the full amount possible as tax free. Then turning everything into a draw down. Then getting it as fast as possible (up to £12K tax free a year). Then I'm gonna spend it. I'm not yet 60. You never know when the bloke with the scythe will turn up. Three holidays booked this year. Massive one next year Canada + USA + somewhere TBD

Is that your only income until your state pension kicks in or will you have another source to rely on?

 

[NearHull]

A bit of admin to carry out when you first activate your drawdown.

The HMRC rules placed onto Pension Providers will assume that whatever sum you take out will be taken out every month. Ie , you intend to drawdown £10k each year at the beginning of the tax year, you drawdown £10k in April, it will tax that sum at source as if you are arranging an annual drawdown of £120k (12 x £10k). You will need to go into your individual tax account and correct the estimated drawdown of £120k down to £10k. HMRC will then refund the overpaid tax in 5 working days.

 

[SwingsitlikeHogan]

Just been musing on my pension fund. Back in the day when most pensions were final salary there was no fund remaining once the pensioner and spouse had deceased. The pension was designed for retirement - end of. Nothing to be inherited beyond the spouses pension…and nothing to pass on when spouse deceases. And that remains the situation for many millions of the population.

Now of course the nature of many existing and most new pensions are money purchase drawdown schemes - with advisors usually advising a drawdown rate that will sustain the fund for the pensioners lifetime…with some left to be passed on to children etc.

But it’s a pension. The idea is that it finishes when the pensioner and spouse are deceased. So why should any residual pension fund not be subject to significant inheritance tax, it’s a pension fund to be used in our lifetimes - not a savings scheme for my children built up using tax free salary. Want a savings scheme for your children? Then invest separately - using taxed money…but there we go.

And on that I will be looking with my financial planner at how I might actively run my pot down to a level that would be sufficient to support a good few years in a care home. And so enjoy most of my pension fund while I can.

Just a thought. A radical one I accept.

 

[NearHull]

Just been musing on my pension fund. Back in the day when most pensions were final salary there was no fund remaining once the pensioner and spouse had deceased. The pension was designed for retirement - end of. Nothing to be inherited beyond the spouses pension…and nothing to pass on when spouse deceases. And that remains the situation for many millions of the population.

Now of course the nature of many existing and most new pensions are money purchase drawdown schemes - with advisors usually advising a drawdown rate that will sustain the fund for the pensioners lifetime…with some left to be passed on to children etc.

But it’s a pension. The idea is that it finishes when the pensioner and spouse are deceased. So why should any residual pension fund not be subject to significant inheritance tax, it’s a pension fund to be used in our lifetimes - not a savings scheme for my children built up using tax free salary. Want a savings scheme for your children? Then invest separately - using taxed money…but there we go.

And on that I will be looking with my financial planner at how I might actively run my pot down to a level that would be sufficient to support a good few years in a care home. And so enjoy most of my pension fund while I can.

Just a thought. A radical one I accept.

The remnants of your drawdown only passes to your nominee as a tax free sum if you die before the age of 75. If you survive past 75, your nominee will pay tax at their ‘going rate’ at the point of withdrawal.

 

[SwingsitlikeHogan]

0

The remnants of your drawdown only passes to your nominee as a tax free sum if you die before the age of 75. If you survive past 75, your nominee will pay tax at their ‘going rate’ at the point of withdrawal.

This I was not aware of…

 

[YandaB]

Does anyone know of a comparison site that shows all the available services offering drawdown, ideally with fees listed and features offered?

 

[NearHull]

Screenshot as the information will behind a firewall

 

[NearHull]

I’ve been with Hargreaves Lansdown for 9 years. Not the best, not the worst.

 

[KenL]

Does anyone know of a comparison site that shows all the available services offering drawdown, ideally with fees listed and features offered?

Suggest you seek advice of am ifa. Perhaps one recommended through your work or a friend.
A pension is too big a deal to trust a comparison site I would think.

 

[Hobbit]

Mrs is with Vanguard. I’m with Legal & General. Both have been good.

Ref where you take your pot. I played 3 of the top companies against each other, and I let all 3 know I would be sharing whatever they offered with their competitors. I ended up with close on 25% more than the original first offer(s).

It’s your money. Play hard ball.