Take your pension and Run

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Andrew Krajewski

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Take your pension and Run

by Andrew Krajewski » Tue Jan 20, 2015 10:32 pm

As from April 2015, if you're over 55 you can cash in ALL of your pension.

The first 25% is tax free
but you'll need to pay income tax on the remainder at your normal rate.

Personally I would take ALL the cash
because then I have total control over my money
and I'm not subject to changes in legislation
or fluctuations in the financial markets
or the vagaries of the pension companies etc.

What would I do with the money?

Invest in property, of course!
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MajorGeneralStanley

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Re: Take your pension and Run

by MajorGeneralStanley » Fri Jan 23, 2015 6:36 pm

suppose i took the 25% cash free this financial year, could i do the same the next financial year and so on? Tax Free?
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Andrew Krajewski

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Re: Take your pension and Run

by Andrew Krajewski » Fri Jan 23, 2015 8:20 pm

Major General Stanley

Sir

I am not an IFA and you should seek the advice of a professional

Having said that
the short answer is that you can only take 25% of your pension pot tax free ONCE

E.G.
A £100k pension pot entitles you to take £25k tax free,
which you could withdraw over several years if you wish

The remaining £75k you can take whenever you wish
but it will be viewed as income so you will pay tax on it at your normal rate.

Take care when drawing the remaining £75k
to ensure that it doesn't push you into a higher tax bracket
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MajorGeneralStanley

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Re: Take your pension and Run

by MajorGeneralStanley » Tue Jan 27, 2015 11:03 pm

definite food for thought... my pension fund is growing nicely at the moment but as you say the market does have its ups and downs! I'm thinking about putting in a planning application to convert some outbuildings and eventually add value ... and i just might be able to achieve that on the 25% . .

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