State Pension Prediction Q

[4D]

I've got about 4 older pensions that I need to sort out.

[Audrey]

I’m no expert by any means, but if they are on the small-ish side I’d cash them out. I had a small workplace pension with M&S before I left for Greece and just cashed out the lot for about £5k - which was bloody good as I’d only worked there part time for a couple of years.

[Bob's Orange]

The wife (who knows more about this stuff than I) said that I'd be paying circa 40% on tax if I was to do that so might have to think again and suck it up for a further 7 years.

Also maybe the transfer value isn't as 'small' as i'd thought, bearing in mind i was only there 6 years and not earning very much.

[4D]

Are you 48 then Bob? 

[Bob's Orange]

Are you 48 then Bob?  

Oops, i added 7 to 50 rather than the correct number to my age! (Think 55 is going up to 57 soon)

No, I'm 46 this year.

[4D]

Haha, young un 

[Samdy Gray]

Current minimum retirement age is 55, but will increase to 57 from 2028 so it's pegged to 10 years before state pension age.

Some old pensions have a protected retirement age of 50. That would have to be on a pension that started before 2006.

Taking smaller pots as a lump sum can make sense in some circumstances, but never take advice from strangers on the internet You could end up paying an awful lot of tax for no reason.

Take proper advice before you go fucking around with pensions.

Source: I'm a Chartered Financial Planner

[4D]

I'm 55 this year,  decisions, decisions 

Wondering whether to cash in my old ones. What's the general tax implications if I did?

[Samdy Gray]

25% tax free, 75% taxable.

In most cases, the pension company will apply the ol' emergency tax which means you'll pay at least 40% and have to claim any overpaid tax back.

[Legends-Lounge]

25% tax free, 75% taxable.

In most cases, the pension company will apply the ol' emergency tax which means you'll pay at least 40% and have to claim any overpaid tax back.

Been there twice with my tax free lumps. In all fairness the inland revenue returns promptly in April. Trick is to take the lim in March 😉

[Bob's Orange]

Current minimum retirement age is 55, but will increase to 57 from 2028 so it's pegged to 10 years before state pension age.

Some old pensions have a protected retirement age of 50. That would have to be on a pension that started before 2006.

Taking smaller pots as a lump sum can make sense in some circumstances, but never take advice from strangers on the internet You could end up paying an awful lot of tax for no reason.

Take proper advice before you go fucking around with pensions.

Source: I'm a Chartered Financial Planner

Yep, 2000-2006 was the pension I was querying.

and absolutely financial advice would be sought, tbf, I was hoping you would answer as I know you've provided information on these financial topics previously so thank you, as ever, for your feedback

[Bob's Orange]

Been there twice with my tax free lumps. In all fairness the inland revenue returns promptly in April. Trick is to take the lim in March 😉

That's a neat hack! (as the youngsters might say! )

[Legends-Lounge]

That's a neat hack! (as the youngsters might say! )

Well take the lump in April and you’re fucked for a year for the difference if you’ve been stung for 40% and you’re realistically on a 20% banding.

My bad. Let me clarify. The tax free element should always be tax free irrespective of the time of year. The clue is tax free. However, if you make a draw down which I did (needs must) then take it in March. Stand easy.

[4D]

25% tax free, 75% taxable.

In most cases, the pension company will apply the ol' emergency tax which means you'll pay at least 40% and have to claim any overpaid tax back.

So, 40% then 

[Jimmy Quinn]

I took my final salary pension out at 55 and reinvested into a private pension.