-
The forums will be unavailable for a few hours on Saturday 6th June, when they do return they will initially be in a degraded state with some features missing, but normal posting/reading will be possible. The main website will not be affected by these updates.
New user registrations are currently disabled.
Some other features of the forum are also currently disabled.
Retirement
- Thread starter Shieldsman
- Start date
DaveH
Striker
Living the dream.
An hour in the gym then 3 hours scarifying the front lawn. Mondays are hell.
SurreyMackem
Striker
Swam 40 lengths first thing then went to Men is Sheds for a coffee and a chat. Spent this afternoon in the garden cutting the grass and painting a bench ready for the summer.
Alfies Hat
Winger
All in one day?
I haven't done that much in 3 1/2 months.
Matt Hopkins
Winger
Yes that's how it could work, although to be fair you probably couldn't have picked a worse amount to use as an example to show the advantage of not taking the lumper in one go if you don't really need itDoes this mean the following … based on current rules… I’ve kept the numbers simple… I dont have a million quid in a pension btw
At 57 I have £1m in my pension pot. That allows me to take £250k tax free lump sum or I can spread that £250k out as a tax free draw down over 10 years at a rate of £25k per year (£250k/10yrs).
I can also take out up to my personal allowance of £12,500 a year.
So each year I can take from my pension £37500 before I start paying any tax between 57-67 years of age.
Plus take money from ISA’s to top up further should I wish too.
Then once I get state pension I pay tax on anything I draw down from my pension as I’ll be over the personal allowance of £12500.
On the note of the starting rate it seems the HMRC don't know it exists I had to ring them up as they taxed my interest when they shouldn't have, well they didn't tax it they adjusted my tax code as they thought I had unpaid tax on savings
Edinburgh Black Cat
Striker
Yes that's how it could work, although to be fair you probably couldn't have picked a worse amount to use as an example to show the advantage of not taking the lumper in one go if you don't really need it
On the note of the starting rate it seems the HMRC don't know it exists I had to ring them up as they taxed my interest when they shouldn't have, well they didn't tax it they adjusted my tax code as they thought I had unpaid tax on savings
There's not much advantage to growing the pension pot above £1m though, unless I'm missing something?
You don't get the 25% lump sum above £1.06m. With £750k plus growing remaining, when withdrawing it you're unlikely to be anything other than a higher rate tax payer.
Better to get the lumper out asap and into ISA/GIAs/pay off mortgage/gifted to family. Plus another £50k per year until state pension.
(All of that is aside from the likely fact that someone who has £1m is sorted whatever they do).
Last edited:
Matt Hopkins
Winger
Yes that's why I said it was a bad example to use £1m as the amount but couldn't be arsed to type out what you did
I'm a bone idle retiree you know 
im not roland rat
Midfield
Yes that's why I said it was a bad example to use £1m as the amount but couldn't be arsed to type out what you did
I was about to ask why ?
I’m not sure I still understand. Is there a cap or something on taking a lumper if you have over £1m in a pension ?
I’m still in my 40’s so a while away yet but I’m assuming the thresholds will increase over the next 10/15 years.
archiesdad
Midfield
268k is the max you can take as the tax free element which equates to 25% of 1.072M.
Matt Hopkins
Winger
Yes as @archiesdad explains.
I wouldn't bank on the 25% tax free amount ever increasing from the £268k
My lack of interest in booze dropped just nicely coming up to packing in . I had this thought in my 40s of daytime drinking in retirement etc
Can't be bothered with night time drinking now
I still drink ,like match day sessions but it's so random.
Fletch
Striker
If anything it’s likely to get reduced
archiesdad
Midfield
Maybe but the good thing is major changes to pension legislations tend to give a long lead time before the change kicks in.
Agreed, didn’t stop many people cashing in last year when they didn’t need to with the rumoured government changes which didn’t happen
millfield ftm 1973
Full Back
Stop betting on Swindon ….Promise you will be counting down the weeks like a prisoner serving a sentence.
Same with me worked since 16. Paying Mortgage off is the game changer.
All you need now is to take up fishing, stop supporting that Sunderland shite and follow the mighty Swindon.
On the other hand take up stamp collecting as it’s far more risky and will offer some excitement.
Shambo
Striker
My continued attempts to understand pensions has lead me to learning how increasing your contributions so that your taxable earnings are £50,270 could be a smart move as you get 100% of the money above that which you are putting into your pension, as opposed to you taking home around 58% of it instead (due to tax and NI)
Is it a common thing to do to contribute so your taxable salary is down to that level?
Is it a common thing to do to contribute so your taxable salary is down to that level?
You've lost me on all of that but I'm no expert
How does increasing your pension contributions bring your earnings up?
