Crosswords1 min ago
Pension Pots...
19 Answers
Hi! I’m after a little advice for my father who cannot talk to anyone on the phone. And sadly they won’t let me speak on his behalf...
So, my dad found out about a little pension pot he has.. totally forgot about it. Got a statement for it and it’s worth about £20K. He also had his private pension from the local government which when he decides to retire at 60. He’s entitled to take the lot tax free (I don’t know how or why this is.. but anyway) he’s not going to obviously. He will be taking a lump sum but leaving enough to pay himself month equivalent to just under the amount
You’re allowed to earn without paying tax.
Our dilemma however, is that if he was to take the forgotten about pension pot out as a lump sum. (25% tax free the rest is taxed, we’re aware that it will go down as personal income and will likely take him into the 40% tax barrier for a small amount of it) will it affect his 100% tax free amount lump sum from his local government pension? I’m sure it’s incredibly simple but when I’m dealing with money, in particular trying to help someone else with their money who doesn’t seem to be able to get any advice from anyone in person at the moment. It just makes me a little nervous. Any help would be so greatly appreciated. Thank you!
So, my dad found out about a little pension pot he has.. totally forgot about it. Got a statement for it and it’s worth about £20K. He also had his private pension from the local government which when he decides to retire at 60. He’s entitled to take the lot tax free (I don’t know how or why this is.. but anyway) he’s not going to obviously. He will be taking a lump sum but leaving enough to pay himself month equivalent to just under the amount
You’re allowed to earn without paying tax.
Our dilemma however, is that if he was to take the forgotten about pension pot out as a lump sum. (25% tax free the rest is taxed, we’re aware that it will go down as personal income and will likely take him into the 40% tax barrier for a small amount of it) will it affect his 100% tax free amount lump sum from his local government pension? I’m sure it’s incredibly simple but when I’m dealing with money, in particular trying to help someone else with their money who doesn’t seem to be able to get any advice from anyone in person at the moment. It just makes me a little nervous. Any help would be so greatly appreciated. Thank you!
Answers
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these folk could help? https:/
You might want to ask here https:/
Just take the max possible tax free lump sum usually 25% but maybe more if your really right about this strange local goverment one. Then take the rest as income. If the income makes him below the personal tax allowance then take more income and less lump sum.
Try pension wise first. The pots seem probly to small to me to make paying for advice worth while.
Do you know the size of the local goverment pot??
Try pension wise first. The pots seem probly to small to me to make paying for advice worth while.
Do you know the size of the local goverment pot??
er blimey
a bit of thrashing around here by the er pension experts
the qustion is - 2 pensions, can you take 25% tax free in both or is there a cap?
https:/
looks as tho you can
ring up the pension scheme that DOES answer and say that it is the second pension, does it affect the 25% rule....
a bit of thrashing around here by the er pension experts
the qustion is - 2 pensions, can you take 25% tax free in both or is there a cap?
https:/
looks as tho you can
ring up the pension scheme that DOES answer and say that it is the second pension, does it affect the 25% rule....
1 to 19 of 19
