I remember when I started work after university I asked one of the pension trustees if it was worth joining the company pension scheme and paying the 5% of my salary. He gave me some speil about it's a personal choice, rely on the state pension and benefits or sacrifice 5% for independence. I joined, he should have said it's a no-brainer.
Wasted or enjoyed ??
Had similar my place when I started at 17 but the union rep said don’t be a dick make sure join the pension scheme now … best advice I got as at time thought of it as lost beer money , final salary scheme but booted out age 49 but at least got protected 32years in (or 33 as got a bonus year somehow ), since then just used it to build up a normal pension pot to go alongside it and help wife with hers.
The place where I worked (Insurance Co) had this ruling in the early/mid 90's that you couldn't join their pension scheme until you were 25. I was ok but a younger co-worker was wanting to put in at 21 and had to wait. Crazy.
Can I ask who you used to pay a couple of hundred of quid for advice, all the ones I've been recommended want full control of the portfolio and that's not what I want?
Same, after 65 I worked a three day week until covid and then 5 days, 8 till 12 WFH. Gave me time to adjust and see how the finances worked out. Not paying pension and National Insurance contributions after 65 made a big difference.
Stayed in b&b's so I got a full breakfast every morning, snacked during the day and then a full meal (off the route) at the end of the day.
For when he’s cleaning windows?Instead of getting him 5 slow cookers could you not mix it up a bit maybe an air fryer, George Formby or a toaster or something?
You can take 25 % from each pot but it will have to go into a potentially less lucrative drawdown account before you get your mits on it .
I think he means taking the tax free 25% total in yearly lumpers.
Yeh that's what I was thinking alongside my £12,700 tax allowance sum so maxing the tax free amount per year.
You ll only pay tax if you nibble at the 75% thats left ( I think that is ring fenced until your retirement date)- if you are currently earning , your allowance has allready been gobbled up . You might even go into a higher tax bracket if you nibble too much.
Incidentally when I moved into draw down I was pushed to used a financial advisor ( they made it out that it was compulsory)- they quoted £5000 the robbing bastards - so I did some research and sorted it myself.
Cheers few year to go yet but need to start looking at it
That's not how it works. You'll get the tax free part of whatever amount you put into drawdown paid straight away. So if you put £16760 into drawdown you'll get the lump sum of £4200 paid to you then if you take £1047/ month that will use up your tax allowance for the year if that's your ONLY income.
Cheers, the £16,760 was what I was thinking ballpark wise and topping it up with savings as needed.That's not how it works. You'll get the tax free part of whatever amount you put into drawdown paid straight away. So if you put £16760 into drawdown you'll get the lump sum of £4200 paid to you then if you take £1047/ month that will use up your tax allowance for the year if that's your ONLY income.
You could put any amount you want into drawdown and you'd get 25% tax free of that amount and still just take £1047/ month and if that's your ONLY income you'd pay no tax. I wouldn't do this but some do to buy a car, pay mortgage off etc
Regarding the funds in drawdown. You could put the money into exactly the same funds as you had before so you won't miss out on any growth, but as ever depending on what happens to markets you could also lose a canny bit. I wouldn't do this either
