| Pensions Advice 10:37 - Oct 3 with 5641 views | PlanetHonneywood |
When in doubt, go to Loftipedia!!
I've two UK work pensions that automatically trigger when I soon reach 60.
Now I can't seek advice and if any of you are an advisor then you'll know you can't advise me, as I am in the EU.
However, if anyone can let me know what are the perceived merits, or not, of taking the 25% tax free bit? They're both small pots and more cheery on top than key contributors to my future funding.
Cheers to whomever clarifies what YouTube has left me somewhat confused about. |  |
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| Pensions Advice on 11:28 - Oct 3 with 4131 views | stowmarketrange |
From a personal point of view I’d say take the 25% lump sums and invest the money in something that will pay a decent amount of interest.I took my Royal Mail pension as soon as I hit 55 and have been earning interest for the last 10 years,which has got a lot better over the past 18 months or so.Maybe a 5 year fixed rate account will suit you if you don’t need the cash now.
Obviously it depends on your personal circumstances,but I much prefer to have the lump sums for me to decide what to do with rather than rely on whatever the pension companies gamble my money on.
Good luck on whatever you choose to do. |  | | |
| Pensions Advice on 11:34 - Oct 3 with 4098 views | StevenageRanger |
I am no expert but in the last 10 years, Stock Market returns have been far far higher than any savings account.
Thats not to say dont take your 25% but sticking in a 'safe' account that barely keeps with inflation vs a longer term Stock Market investment should be considered IMO.
Ebveryone to their own but this brings it home for me
The S&P 500 returned 261% during the last decade, which equates to 13.6% annually. (You would have been lucky to get 1% 10 years ago and yes the last year its been 4-5% but 13.6% each year even traking into account the meltdowns of COVID, Truss, Ukraine War, Trump tarrifs) For me the markets will always win over a loner period (5+ years) |  | | |
| Pensions Advice on 11:41 - Oct 3 with 4059 views | stowmarketrange |
| Pensions Advice on 11:34 - Oct 3 by StevenageRanger |
I am no expert but in the last 10 years, Stock Market returns have been far far higher than any savings account.
Thats not to say dont take your 25% but sticking in a 'safe' account that barely keeps with inflation vs a longer term Stock Market investment should be considered IMO.
Ebveryone to their own but this brings it home for me
The S&P 500 returned 261% during the last decade, which equates to 13.6% annually. (You would have been lucky to get 1% 10 years ago and yes the last year its been 4-5% but 13.6% each year even traking into account the meltdowns of COVID, Truss, Ukraine War, Trump tarrifs) For me the markets will always win over a loner period (5+ years) |
I don’t disagree with you mate,but from my own personal experience with an Aviva pension the bad days always outnumbered the good,and it reduced in value a lot more quickly than it ever increased.
It all depends on the level of risk you want on your assets.Each to their own and all that. | | | |
| Pensions Advice on 11:47 - Oct 3 with 4048 views | StevenageRanger |
Yes mate, everyone has different attitudes and different capital. A good spread is probably the best route!! | | | |
| Pensions Advice on 11:55 - Oct 3 with 4018 views | FredManRave |
Invest Shinvest!
Take the 25% from both, buy a red, convertible, sports car with one and a modest château with the other and you'll still have enough left to be playing pétanque with tes amis in the lazy afternoons. |  |
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| Pensions Advice on 12:08 - Oct 3 with 3987 views | Lanhoop |
First question is what type of pensions are they? If they are final salary or defined benefit then do not take money out. Much better to stick with them and take the income when it becomes available.
If they are defined contribution or most of the other types then you need to look more carefully at the terms. There's a lot of variation when it comes to what income they might provide, what income a spouse might get if you pop your clogs and whether they are index linked or not. Chances are they won't be the same either so, sorry, you'll need to work at it and then take steps once you have the info. Chances are the 25% tax free is worth taking but that's by no means a given.
This isn't advice, it's just what I looked at and learnt when I retired recently.  | | | |
| Pensions Advice on 12:16 - Oct 3 with 3956 views | essextaxiboy |
I would take the 25 % There were rumours last budget and in anticipation of Novembers that the chancellor will reduce or tinker with the tax free lump sum . I took mine in Feb . |  | | |
| Pensions Advice on 12:21 - Oct 3 with 3947 views | E17hoop |
Without knowing your personal circumstances, I wouldn't suggest any course of action!
You call them small pots - for others that might be quite large.
Your 25% might be substantial for someone else but little for you.
Its all about your future income - what you have, what you need, what you spend. |  |
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| Pensions Advice on 12:32 - Oct 3 with 3912 views | stevec |
Hard to say but I’m guessing you will carry on working, in which case probably worth a look whether your decision now, particularly if you take the 25% free of tax in one go, might tip any future withdrawals into a higher tax bracket.
On the other hand, you mention it’s not integral to your future finances, and given the debt level being carried and constantly increasing around this end of the world, it might be worth taking what you can get your hands on now and stick it in gold or under the bed.
Who really knows but best of luck. |  | | |
| Pensions Advice on 12:38 - Oct 3 with 3893 views | ted_hendrix |
Spread your cash, I've got dosh In a Building Society account that's been giving a good return for Months/Years, the interest has been paying our Monthly utility bills (just).
I've got a wedge that's been In an ISA for years, we renewed It again In august of this year, we spent a few hours going through various offers from various saving accounts to the point where It was getting tedious.
Don't gamble with your money, go safe when Investing.
Getting taxed on my Company pension makes me cry every Month. |  |
| My Father had a profound influence on me, he was a lunatic. |
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| Pensions Advice on 12:38 - Oct 3 with 3885 views | Mick_S |
| Pensions Advice on 12:32 - Oct 3 by stevec |
Hard to say but I’m guessing you will carry on working, in which case probably worth a look whether your decision now, particularly if you take the 25% free of tax in one go, might tip any future withdrawals into a higher tax bracket.
On the other hand, you mention it’s not integral to your future finances, and given the debt level being carried and constantly increasing around this end of the world, it might be worth taking what you can get your hands on now and stick it in gold or under the bed.
Who really knows but best of luck. |
Monsueir John. Take the 25 percent and spend it. It’s a laugh.
No problem, mate. |  |
| Did I ever mention that I was in Minder? |
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| Pensions Advice on 12:41 - Oct 3 with 3886 views | dmm |
Without wanting to cast any doubt on the advice offered here, to be sure you make the right decision, I'd consult a financial adviser specialising in pensions. There are so many different ways of managing your pensions, depending on your circumstances, it's worth paying a bit for professional advice. |  | | |
| Pensions Advice on 12:58 - Oct 3 with 3816 views | TheChef |
| Pensions Advice on 12:16 - Oct 3 by essextaxiboy |
I would take the 25 % There were rumours last budget and in anticipation of Novembers that the chancellor will reduce or tinker with the tax free lump sum . I took mine in Feb . |
Hmmm yeah, you can probably rest assured that governments don't want you with much disposable income to enjoy... |  |
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| Pensions Advice on 13:22 - Oct 3 with 3753 views | TomS |
It's a no-brainer. Maximise your tax-free withdrawals from your pension pots upon drawdown, ie take the full 25%. You'll be paying tax on every future withdrawal, so you'll be minimising your tax liability by taking the lump sum. |  | | |
| Pensions Advice on 13:31 - Oct 3 with 3705 views | derbyhoop |
I'm drawing mine now, from a decent sized pot, so only advice from me is general.
Save as much as you can, as early as you can. But, ensure you have ready cash available for emergencies. 3 months salary is about the right balance. |  |
| "Travel is fatal to prejudice, bigotry and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one little corner of the Earth all one's lifetime." (Mark Twain)
Find me on twitter @derbyhoop and now on Bluesky |
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| Pensions Advice on 13:46 - Oct 3 with 3648 views | E1Hoop |
Is it possible that you can defer the taking of the pension. I had a work pension that triggers at 60 but i had the option to defer that for a few years. Not advice, but possibly another option. | | | |
| Pensions Advice on 17:18 - Oct 3 with 3336 views | W12Mikey |
A quick google search tells me that in some EU countries (sorry, it didn’t say which) your 25% lump sum withdrawal may be regarded as taxable income. So I would suggest you first need to ascertain whether that is the case where you live. Then, as another poster said it is very important to know whether these are defined benefit or defined contribution schemes. The former means you are not directly taking investment risk on what you leave in the pension. If defined contribution you also need to think about where it is invested and how you want to draw it down. There is a lot online about this, but your decision needs to be based on your own circumstances so I would suggest getting advice tailored to you. There must be professional advisers that deal with UK expats. | | | |
| Pensions Advice on 03:30 - Oct 6 with 2917 views | PlanetHonneywood |
Thank you one and all.
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| Pensions Advice on 05:15 - Oct 6 with 2857 views | FDC |
| Pensions Advice on 11:55 - Oct 3 by FredManRave |
Invest Shinvest!
Take the 25% from both, buy a red, convertible, sports car with one and a modest château with the other and you'll still have enough left to be playing pétanque with tes amis in the lazy afternoons. |
This is the way. Alternatively drop it all on the most obscure crypto shit coin you can find. |  | | |
| Pensions Advice on 05:20 - Oct 6 with 2850 views | FDC |
| Pensions Advice on 12:41 - Oct 3 by dmm |
Without wanting to cast any doubt on the advice offered here, to be sure you make the right decision, I'd consult a financial adviser specialising in pensions. There are so many different ways of managing your pensions, depending on your circumstances, it's worth paying a bit for professional advice. |
I've been doing a bit of looking into financial advisors recently, and whilst I'm sure there are good ones out there, there are so many charlatans too. The problem is that to identify the good ones you really need a fair bit of knowledge to begin with, and by the time you've accumulated that knowledge you probably don't need the advisor any more. It's a tricky situation for sure. Personally, and this will be controversial, I'm fairly confident that I've worked out what I needed to work out after an afternoon in conversation with Claude AI. But again, that was only possible because I'd accumulated enough understanding to be confident with it, cross checking numbers with my own spreadsheets etc. | | | |
| Pensions Advice on 07:13 - Oct 6 with 2725 views | DWQPR |
JH, I retired last year as an adviser of 37 years standing. So I cannot give you advice anyway but I’ll give you a few facts and my opinions.
If the schemes are deferred benefit arrangements or as most people know them, final salary schemes, then take the benefits when they are due, you will not gain anything by deferring them. You could request an enhanced lump sum through the accelerated pension rules which could greatly enhance your lump sum but will reduce your pension by a factor of £12 of lump sum for £1 of pension, this will have the benefit of potentially reducing your tax liability in the future and enabling more of your benefits now and as someone has already said, you don’t know when your sell by date is. This also should not effect the eventually spousal pension should your missus survive you.
If the pension is a defined contribution scheme, (personal pension rules usually), then depending on the value of the pension you could access the whole funds under triviality rules, although anything above the TFC will be liable for income tax, wherever you declare it. Take it if you need it, don’t take it if you don’t as the chances of a greater return over the longer term is much better than taking the funds and sticking it in some deposit account.
If you need any further ‘opinion’ then PM me. | |
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| Pensions Advice on 14:17 - Oct 11 with 2099 views | stevec |
Between 1999 and 2002, chancellor Gordon Brown sold 395 tonnes of our nation’s gold for £2.6bn. This would today be worth £38bn.
And the media often turn to this bellend for advice on the economy. | | | |
| Pensions Advice on 14:22 - Oct 11 with 2070 views | PlanetHonneywood |
| Pensions Advice on 14:17 - Oct 11 by stevec |
Between 1999 and 2002, chancellor Gordon Brown sold 395 tonnes of our nation’s gold for £2.6bn. This would today be worth £38bn.
And the media often turn to this bellend for advice on the economy. |
Not sure how relevant your post is to this thread, but I think that's just over half of what The Lettuce cost the UK economy with her thankfully, one and only budget. | |
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