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Retirement

Darlo1973 said:
Fair point.

I still need to do more self-education about pensions as I haven't yet got my head around drawdown and crystallisation. I'd like tot think that I'm pretty good with numbers and money so if I find it confusing then I wonder how most people cope.
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I had no bother getting my head round drawdown, but as long as I live I'll never understand notional split that some platforms use and don't even mention gilt ladders :D
 

Quick question for the in-the-knows...

My missus turns 55 on March 31st. She has an auld pension fund that she hasn't contributed in for about 20 years and is now worth about £12k. She's thinking of cashing all of it in to do the bathroom and gan on a git class holiday.

How will this effect her tax? She has another pension fund with a fair amount in but no longer contributes towards and a smaller one that she is still contributing to know cos she's still working f/t. Dunno whether the tax year ending 5 days after her birthday is a help or hindrance tbh.
 
Paddy O'Dors said:
Quick question for the in-the-knows...

My missus turns 55 on March 31st. She has an auld pension fund that she hasn't contributed in for about 20 years and is now worth about £12k. She's thinking of cashing all of it in to do the bathroom and gan on a git class holiday.

How will this effect her tax? She has another pension fund with a fair amount in but no longer contributes towards and a smaller one that she is still contributing to know cos she's still working f/t. Dunno whether the tax year ending 5 days after her birthday is a help or hindrance tbh.
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She'll get 25% tax free and pay tax on the remaining £9k at her normal rate. I think if she takes the whole £9k HMRC will overcharge on the tax as they'll think that's her monthly wage, IIRC I rang up and got it refunded when I'd payed too much, someone will know what exactly happens.

Also as it's not classed as a small pot she'll trigger MPAA so will be limited as to how much she can put into the pensions in the future, it's £10k at the minute so may or may not matter to you
 
Matt Hopkins said:
She'll get 25% tax free and pay tax on the remaining £9k at her normal rate. I think if she takes the whole £9k HMRC will overcharge on the tax as they'll think that's her monthly wage, IIRC I rang up and got it refunded when I'd payed too much, someone will know what exactly happens.

Also as it's not classed as a small pot she'll trigger MPAA so will be limited as to how much she can put into the pensions in the future, it's £10k at the minute so may or may not matter to you
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Is that £10k p/a she's limited to putting in her current auto-enrol in the future?

If you get a refund of the overpaid tax down the line that's summat she can live with. Nice to know you've got summat coming from them for a change tbh.
 
Paddy O'Dors said:
Is that £10k p/a she's limited to putting in her current auto-enrol in the future?
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Yes a way round it, if she's desperate for the bathroom and hols, would be to take tax free cash ONLY from the other pension then MPAA wouldn't be triggered 👍
Edit its £10k across all pensions not each individual one so if her auto enrol took £8k she could only put £2k into a SIPP
 
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archiesdad said:
2 days left although Friday is my final commute home, probably with a cracking hangover as leaving do is tomorrow night. Excited and nervous in equal measures about what comes next!!
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A watch or clock is traditional. Something as a reminder of all the time you're enjoying yourself while you could be a work.
 
Darlo1973 said:
Yes, I'm in that transition bracket though I haven't worked out what to do yet. Probably should sit down with an IFA at some point.

As I understand it, in April 2028 the minimum age increases from 55 to 57. So, if you turn 55 before then you can access your pension scheme(s) but then lose the ability in April 28 until you get to 57

In my case I'm 55 in July next year (yikes!) so will have a 9 month window then can't access it until July 2029.
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It’s a strange way of doing it, I have a window of less than one month
 
They have just announced a restructure and voluntary redundancy at my place. I left my last place because of too many staff cuts (but no service cuts) and restructure after restructure.

I have tentatively mailed the director to say we could save posts by encouraging people to drop to 80% or 90%. It is something I was going to ask about around August next year when an increment kicks in. But if it starts getting offered now then I might just take it. Financially I'm not quite where I'd like to be to accept a 10% cut, but 26 extra days off a year. If I do a 50 mile cycle on each of those days, that is 1,300 miles. The benefit would be huge.
 
archiesdad said:
2 days left although Friday is my final commute home, probably with a cracking hangover as leaving do is tomorrow night. Excited and nervous in equal measures about what comes next!!
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Good luck and enjoy
Town End Farmer Giles said:
All done. Paid for another month as had lots of holidays but that's it after almost 40 years working
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Nice, enjoy
Swindon On Tour said:
I don’t miss the Corporate bullshit. However I always put people first and treated them with respect. Hated the politics and behaviour mostly above me and it was constantly playing a game until it was your turn.
Definitely less bullcrap in a smaller business.

Anyway keep knocking down those months and stick to the plan. ;)
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I burst out laughing too often at work when I hear Corportate bullshit and witness brown nosers in action. You can spot it a mile off and you know who they are even just by looking at them :lol:
 
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GordonMuchallNo1Fan said:
Good luck and enjoy


Nice, enjoy

I burst out laughing too often at work when I hear Corportate bullshit and witness brown nosers in action. You can spot it a mile off and you know who they are even just by looking at them :lol:
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Self promoting twats. 🤣🤣
Yet most of the people who report to them think they are useless.
The best leaders are those that their immediate teams respect, appreciate and talk openly with. You often find the turnover within those teams minimal.

Don’t miss it.
Town End Farmer Giles said:
All done. Paid for another month as had lots of holidays but that's it after almost 40 years working
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Strange feeling and for me it just felt more, “is that it then.”
Well done Mate.🍺👍
 
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