im 55 in 6 months and i have a private pension from 25 years ago paid in for 6 years
apparently i can take it out and blow the lot tax free....am i being gullible or what?
Last edited by: VxFan on Thu 15 Jan 15 at 01:15
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>> im 55 in 6 months and i have a private pension from 25 years ago
>> paid in for 6 years
>> apparently i can take it out and blow the lot tax free....am i being gullible
>> or what?
No, but don't get carried away about what sum of money you will get!
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British Airways cashed in my first pension for me and sent me the cheque.
****Sevenpoundsandthirtyfivepence****
It said.
Such a pretty cheque tho, with the BA logo on it, drawn on the bank of america. I kept it, framed it and put it in my Feng shui money corner.
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>> Feng shui money corner.
Seen it all now.
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>>.am i being gullible
>> or what?
I don't know!
Read this -
www.thepensionsregulator.gov.uk/pension-scams
There are a lot of unscrupulous people running "pension liberation" scams. From April you will be able to access your pensions if you want, but only 25% will be tax free unless you have unused allowance.
The other point of course is that pensions are for retirement - I hope you have that sorted out!
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>> The other point of course is that pensions are for retirement - I hope you
>> have that sorted out!
So I'm not the only one who thinks that, like Personal Pensions etc etc etc, the outcome of this is going to be a lot of badly bitten bums?
CAB have the contract to provide information (not advice!) on the subject. That might be a chalice best not supped from too. Hope our insurance is up to snuff.
Last edited by: Bromptonaut on Wed 14 Jan 15 at 21:48
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>> So I'm not the only one who thinks that, like Personal Pensions etc etc etc,
>> the outcome of this is going to be a lot of badly bitten bums?
>>
As someone living on a pension I can assure you that the state pension is not an option for a comfortable life. I treat mine as pocket money, it certainly would not do any of paying the bills, running the car, buying the food, eating out, paying for travel, or provide more than a very frugal existence, probably in a tent.
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Mrs was in a scheme for about 8 years, nothing special, transfer value £130k
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ON,
I take it that as a Naval seafarer you were rewarded, as I was on leaving the Civil Service, with a decent final salary pension? We also had secure work up to point age or opportunity allowed us to draw that benefit.
We are the fortunate ones.....
Last edited by: Bromptonaut on Wed 14 Jan 15 at 22:24
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>> ON,
>>
>> I take it that as a Naval seafarer you were rewarded, as I was on
>> leaving the Civil Service, with a decent final salary pension? We are the fortunate ones.....
>>
Very fortunate. I feel for the old folk (like me) I see in the supermarket deciding what food they can afford. I expect they will be a more common sight in the years ahead.
Last edited by: Old Navy on Wed 14 Jan 15 at 22:31
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Trouble is however good the pension scheme we still get to die just the same.
Bummer ain't it.
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>> >> So I'm not the only one who thinks that, like Personal Pensions etc etc etc, the outcome of this is going to be a lot of badly bitten bums?
>>
>> As someone living on a pension I can assure you that the state pension is
>> not an option for a comfortable life.
>>
I get the impression that many folks think they can cash in their pension pot, blow it and the state will bail them out. I do hope I am wrong.
>>
I feel so glad SWMBO and I have good company pensions plus the state pensions.
When I had an offer I could not refuse ( ££££s) I took early retirement but both our offspring were at Uni so I did take some cash to cover their expenses else my pension would have now been even higher.
I paid in a lot over many years but am well rewarded now. Just so fortunate plus no call to fund our two.
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Getting back to the OP, I do not think you can blow the lot 'tax free'. I am no expert in the matter, but understand that you can only withdraw 25% tax free. Once these new rules about pensions come into play sometime in 2015 you can withdraw all of it, but it will be classed as income and tax will have to be paid on any amount over the personal allowance. I think!
In my late teens & early twenties I paid small amounts into a pension, then stopped and never restarted when I bought my first house aged 23. It was a PP and the only person contributing was me, so Instead I mortgaged myself to the hilt, 2.5x earnings in those days, and rented out rooms to mates to help cover the mortgage (just). I took my full 25% tax free from my tiny pension 6 years ago, which was about £4k and splurged the lot on my 330 kitty. Enjoyed every minute driving it since, and I plan to eat into the balance remaining to make up my personal allowance in full. My part time earnings fall below that threshold, so it makes sense ( to me) to utilise that allowance fully and consequently pay no tax.
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cashing my pension in - Zero
