Corcaigh_the_Cat
Well-known member
Can you take 25% tax free from this sum?
Pension transfer value
- Thread starter Corcaigh_the_Cat
- Start date
Lightweight
Well-known member
Lots of different answers to this question dependent on individual circumstances ( e.g. age, have you taken any tax free pension previously). Get professional advice as even if you meet all the requirements you are then limited in the future what you can save tax free in your pension pot.
Pension wise is a good starting point if you are over 50 ( Goverment recommended scheme)
Pension wise is a good starting point if you are over 50 ( Goverment recommended scheme)
Corcaigh_the_Cat
Well-known member
I'm 65, thanks for that.
AcklamAngel
Well-known member
If you transfer from your existing pension provider to another provider as long as your over 55. A registered Financial Advisor will be able to help you with this, your existing provider should also ask regarding your new provider and Financial Advisor security checks. Confirm they are legitimate
easy_livin
New member
If you have the transfer value the 25% will not be applicable to this figure. The 25% relates to whatever the fund value is in the active pension, the fund value and the transfer value are not the same thing as it will be a lot higher due to the admin and other savings the pension Co. will make by not having to deal with it. The subject of pensions and how to take them is complex, as @Lightweight says above try PensionWise, although if it's a Defined Benefits scheme (Final Salary) they probably won't be able help. If the T.Val. is over £30k you must have IFA advice (government rules) and good luck finding one that will have the Profesional Indemnity Ins. to cover it - most don't, also lot's won't consider anything under £200k.
If you work for a large company they should provide subsidised advice from a contracted IFA. or failing that find an IFA who will give say 30 minutes free consultation to guage how you could proceed.
As a guide the upfront lump should relate to about 15 years of your reduction in annuity if you were to go down that route. Good luck, you're going to need it.
The above is just my experience dealing with my wife's recent retirement, she's also 65 so no State Pension yet grrrr.
If you work for a large company they should provide subsidised advice from a contracted IFA. or failing that find an IFA who will give say 30 minutes free consultation to guage how you could proceed.
As a guide the upfront lump should relate to about 15 years of your reduction in annuity if you were to go down that route. Good luck, you're going to need it.
The above is just my experience dealing with my wife's recent retirement, she's also 65 so no State Pension yet grrrr.
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Corcaigh_the_Cat
Well-known member
Thanks very much. I went through PensionWise and have an appointment in Stockton. It's not a work related pension, just a personal plan.
Joebolton
New member
I've got a couple I am pulling out when I am 55.
I spoke to the company and I get 25% tax free. The rest gets taxed, and initially they tax it as though you have earned the lot in the same month. You have to complete an online form with HMRC to claim it back. P53 or P53Z
So if its say £20000, and you take the lot , £5k is tax free. You pay tax on the £15k .
So if you are on say 40,000 salary you have to be careful not to go into the £50k tax bracket for that tax year.
I spoke to the company and I get 25% tax free. The rest gets taxed, and initially they tax it as though you have earned the lot in the same month. You have to complete an online form with HMRC to claim it back. P53 or P53Z
So if its say £20000, and you take the lot , £5k is tax free. You pay tax on the £15k .
So if you are on say 40,000 salary you have to be careful not to go into the £50k tax bracket for that tax year.