C
charlie2
Well-known member
because i swapped my pension pot from the one i had paid it all into i do have to pay a management charge but its a small amount and i only take the difference between my state pension and my tax allowance i have not paid a penny in tax on any of it by staying under my tax allowance, it would probably have been different if i had a much bigger pension pot though. i started it mid 1970s with a very small monthly payment and sort of forgot about it just kept same payment the yearly statements never showed it being worth doing really, i stuck with it as i was self employed up until mid 1990s then went direct employed by then the monthly payment i had never changed was about what i got paid per hour so i carried on paying it. when i stopped work i had more time to think about what i wanted to do with it and was surprised how much it was worth but all the original company would do was pay at a set amount per month, that did not fit in with my thoughts etc i spoke with the accountant i had used while self employed and he told me to try my bank they led me to a local small company who understood my needs and did everything setting up and changing to a new pension provider. i never fully understood all the regulations and loopholes that could be used but have been completely happy with how it has turned out for me. one of the things i did not want to do was pay income tax on it nearly all that i have taken out i have put into fixed term isa savings purely because its tax free interest and over a short term. it may be worth you actually seeing and independant pension advisor as there could be other ways for you as there was for me.I've tried to get them to do that, or similar, but won't play ball ..
trouble is once you take the 25% it triggers the tax point for your pot .. have you checked to see how much the bast*rds took from the remaining pot .. as said the tax is based on the entire pot value, so although you theoretically get 25% lump 'tax free' - you bloody don't .. only way to avoid the tax trigger is to just draw it as the pension it was designed to provide.
Mine's complicated yet further, having discovered the bar stewards have been charging management fees on it, despite it not being subject to them and I have a letter from them clearly stating that fact, but last years fees were close to 60% of the contributions
can't cash in 'til I get that sorted, as it goes back decades, unknown to me, at the time, by the look of it and the chances of sorting it post pay out'd be next to zero.. could well be a decent amount and make a fair difference to my eventual pot.
