The Retirement Thread
1 lurker |
172 watchers
May 2022
1:45pm, 31 May 2022
58,266 posts
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Velociraptor
Slightly wishful thinking,  G. If you've got a pension fund of £1million (close to the lifetime limit) you could take £250k as the tax free lump sum and use it to reduce your mortgage, but you couldn't whang the £250k straight back into your pension at the end. And it would be a gamble since although you'd be saving interest you'd potentially be losing five years of investment returns.
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May 2022
1:48pm, 31 May 2022
3,098 posts
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B Rubble
Lots to think about, thanks again arbster. There should be a platform charge for this thread! HappyG(rrr) I think I read somewhere that the maximum charge for pension transfers for over 55s was 1%. Here it is moneyhelper.org.uk |
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May 2022
1:51pm, 31 May 2022
3,099 posts
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B Rubble
And what V'rap said. There are rules on pension contributions once you have taken your TFLS.
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May 2022
1:51pm, 31 May 2022
3,312 posts
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flyingfinn
Happy AFAIK certainly yes if you're over 55 but the penalties are huge. Taking the money out of a pension wrapper is a tax 'event'. 75% will be taxed at your marginal rate (ie if a significant sum largely 40%). You can then only put money into a pension scheme after that at the rate of a few thousand a year (can't remember the exact figure but it is pennys) so if the sum withdrawn was significant you'll never get it all back in. If under 55 not sure but I think you might lose the tax relief you've received when putting money in which will vastly reduce the pot. |
May 2022
2:18pm, 31 May 2022
27,380 posts
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Johnny Blaze
I've had a SIPP for a few years but I do very little active management of it. It's all in low cost tracker funds, which means it is fairly well spread and annual charges aren't a stinger.
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May 2022
2:25pm, 31 May 2022
58,268 posts
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Velociraptor
My son has discovered a downside to hands-off investment. I helped set him up with a LISA making a regular investment into a global tracker a few years ago and that's done well, but he didn't realise (and I may not have told him) that the tax incentive and any ad hoc payments he made wouldn't go straight into the fund so when he had a look recently he discovered that he had a big dollop of cash sitting there doing nothing. But it sounds as if he quite enjoyed doing a bit of research and choosing how to invest it.
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May 2022
5:56pm, 31 May 2022
2,489 posts
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Flatlander
Be extremely careful of taking money from a pension and then putting some or all of it back into the same or another pension. This is known as recycling and is subject to rules gov.uk . If you fall foul of these rules, the penalties can be quite punitive.
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Jun 2022
1:29pm, 1 Jun 2022
62,285 posts
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Lip Gloss
Was out this morning and came home to get changed and luckily I looked at my emails….my appointment this afternoon with my FI has been cancelled as he is off ill.
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Jun 2022
11:53am, 7 Jun 2022
10,266 posts
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cathrobinson
One mortgage down, one to go. Sharing it with this group as I know you’ll ‘get it’. The plan now is to keep chipping away at the remaining mortgage but with my main focus being to build up my pension pot. I’m still hoping to be mortgage-free in just over a year’s time… |
Jun 2022
11:54am, 7 Jun 2022
11,241 posts
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lammo
Woohoo, nice one
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- Martin Lewis on pensions
- Support and advice for those widowed under the age of 50
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