MMmmm go find out big boy... you're one of our resident financial wizards.gremlin wrote: ↑Thu Jul 25, 2024 2:14 pmI'm pretty sure Mrs. G asked this when we went see our FI last year and was told the answer was no, that's not the case.weeksy wrote: ↑Thu Jul 25, 2024 2:10 pm Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
I can't recall why, as at that point the coffee and biscuits came in and I saw they had shortbread....
Pension stuff, how's it all looking ? HAve you prepared ?
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
It may vary from pension to pension. One of mine let's me take cash out and 25% is tax free, rather than just a 25% tax free sum.weeksy wrote: ↑Thu Jul 25, 2024 2:10 pm Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
You can pay more than £10k but you won't get tax relief on anything over £10k.weeksy wrote: ↑Thu Jul 25, 2024 2:10 pm Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
Doubt is not a pleasant condition.
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But certainty is an absurd one.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
@weeksyCount Steer wrote: ↑Thu Jul 25, 2024 2:35 pmYou can pay more than £10k but you won't get tax relief on anything over £10k.weeksy wrote: ↑Thu Jul 25, 2024 2:10 pm Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
Yeah. That was sort of what I heard, in between the crunch and slurp of tea and biscuits.
All aboard the Peckham Pigeon! All aboard!
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
And is that done manually by them or something you have to do as a self-assesment ?Count Steer wrote: ↑Thu Jul 25, 2024 2:35 pmYou can pay more than £10k but you won't get tax relief on anything over £10k.weeksy wrote: ↑Thu Jul 25, 2024 2:10 pm Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Err. Dunno! That's getting a bit specialist. I'd ask your payroll/pension people that one to start with. Someone like Sillycar might have an idea on the mechanics of tax relief application etc.weeksy wrote: ↑Thu Jul 25, 2024 4:06 pmAnd is that done manually by them or something you have to do as a self-assesment ?Count Steer wrote: ↑Thu Jul 25, 2024 2:35 pmYou can pay more than £10k but you won't get tax relief on anything over £10k.weeksy wrote: ↑Thu Jul 25, 2024 2:10 pm Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
But certainty is an absurd one.
Voltaire
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
No worries, it's not for a while yet, so no rush.Count Steer wrote: ↑Thu Jul 25, 2024 5:30 pmErr. Dunno! That's getting a bit specialist. I'd ask your payroll/pension people that one to start with. Someone like Sillycar might have an idea on the mechanics of tax relief application etc.weeksy wrote: ↑Thu Jul 25, 2024 4:06 pmAnd is that done manually by them or something you have to do as a self-assesment ?Count Steer wrote: ↑Thu Jul 25, 2024 2:35 pm
You can pay more than £10k but you won't get tax relief on anything over £10k.
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
I know, I look older
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
The thing that pisses me off, is that despite assorted govts encouraging us to invest in long term planning for pensions....
a) They keep changing the rules/options.
b) They make the rules so bloody complicated that only a specialist can understand them.
Grr!
a) They keep changing the rules/options.
b) They make the rules so bloody complicated that only a specialist can understand them.
Grr!
Cornish Tart #1
Remember An Gof!
Remember An Gof!
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
weeksy wrote: ↑Thu Jul 25, 2024 5:35 pmNo worries, it's not for a while yet, so no rush.Count Steer wrote: ↑Thu Jul 25, 2024 5:30 pmErr. Dunno! That's getting a bit specialist. I'd ask your payroll/pension people that one to start with. Someone like Sillycar might have an idea on the mechanics of tax relief application etc.
I know, I look older
I think it will probably depend on whether the 10k+ is coming directly out of salary and employer contributions, or if you are contemplating putting slabs of cash directly into your DC scheme...or some of both.
As CJ says it's all a bit complicated...for them to administer too. The tax systems must be in the 'maintained to death' state.
Doubt is not a pleasant condition.
But certainty is an absurd one.
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But certainty is an absurd one.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Yeah - waiting for labour to drop the hammer on the amount that can invested each year that you get tax relief on.Cousin Jack wrote: ↑Thu Jul 25, 2024 5:41 pm The thing that pisses me off, is that despite assorted govts encouraging us to invest in long term planning for pensions....
a) They keep changing the rules/options.
b) They make the rules so bloody complicated that only a specialist can understand them.
Grr!
Or change it so you can’t get higher rate relief.
Or both!
I don’t think they’ll dare touch the 25%
Re: Pension stuff, how's it all looking ? HAve you prepared ?
I've just whacked up my pension contributions at the new job to 20% all in.
It's a smaller, less-corporate company, so their contribution isn't amazing, which is a shame, but I can afford to whack in a chunk.
First payslip with the new contribution might be a bit painful though
It's a smaller, less-corporate company, so their contribution isn't amazing, which is a shame, but I can afford to whack in a chunk.
First payslip with the new contribution might be a bit painful though
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Good news mon ami. The £10k limit applies if you have taken taxable money out of the fund, not tax-free. See:weeksy wrote: ↑Thu Jul 25, 2024 5:35 pmNo worries, it's not for a while yet, so no rush.Count Steer wrote: ↑Thu Jul 25, 2024 5:30 pmErr. Dunno! That's getting a bit specialist. I'd ask your payroll/pension people that one to start with. Someone like Sillycar might have an idea on the mechanics of tax relief application etc.
I know, I look older
https://www.fidelity.co.uk/retirement/m ... allowance/
(The UFPLS bit means taxable lump sums ie - 'An UFPLS is a flexible way to take money from your pension. You can withdraw your entire pension in one go, or a bit at a time. An UFPLS withdrawal shouldn't be confused for a tax-free cash pension lump sum, where the entire payment is tax free.')
Still worth getting a bit of professional advice though.
.
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
But certainty is an absurd one.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Oh don't worry about that, when I hit 54 I'll be getting fully IFAd up and working all the plans out.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
https://www.retirementlivingstandards.org.uk/
Not sure how the people who are retired/retiring view this... I still struggle a little with how £44,000 and no mortgage only equates to 'comfortable', i'd have thought it'd be a bit more than comfortable.
Not sure how the people who are retired/retiring view this... I still struggle a little with how £44,000 and no mortgage only equates to 'comfortable', i'd have thought it'd be a bit more than comfortable.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Depends what you're used to as a couple. eg If you've had a combined income of £200k+ then £44k will feel rather different. If you've survived on £50k you will probably feel better off. I'll see if I can dig out the Which? analysis on what you can actually do on a 'comfortable' amount. It's a pretty modest lifestyle in terms of holidays, cars, (and bicycles ), home improvements and general expenditure etc etc.weeksy wrote: ↑Wed Jul 31, 2024 9:11 am https://www.retirementlivingstandards.org.uk/
Not sure how the people who are retired/retiring view this... I still struggle a little with how £44,000 and no mortgage only equates to 'comfortable', i'd have thought it'd be a bit more than comfortable.
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
But certainty is an absurd one.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Well yes i get that... but i always equate retiring with paying off the mortgage, which saves over £1000 (close to £1400) a month, so i see my 'need' as going down dramatically. I also struggle to see where £3000 a month goes and disappears to if you've not got a mortgageCount Steer wrote: ↑Wed Jul 31, 2024 9:28 amDepends what you're used to as a couple. eg If you've had a combined income of £200k+ then £44k will feel rather different. If you've survived on £50k you will probably feel better off. I'll see if I can dig out the Which? analysis on what you can actually do on a 'comfortable' amount. It's a pretty modest lifestyle in terms of holidays, cars, (and bicycles ), home improvements and general expenditure etc etc.weeksy wrote: ↑Wed Jul 31, 2024 9:11 am https://www.retirementlivingstandards.org.uk/
Not sure how the people who are retired/retiring view this... I still struggle a little with how £44,000 and no mortgage only equates to 'comfortable', i'd have thought it'd be a bit more than comfortable.
That's then not including that Mrs Weeksy would have a job/pension on top ... which again where the heck does all that go lol.
Maybe i'm seeing it with rose tinted glasses, but i honestly see say £44,000 as a great amount for retirement.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
The £43.1k figure is for a couple.weeksy wrote: ↑Wed Jul 31, 2024 9:32 amWell yes i get that... but i always equate retiring with paying off the mortgage, which saves over £1000 (close to £1400) a month, so i see my 'need' as going down dramatically. I also struggle to see where £3000 a month goes and disappears to if you've not got a mortgageCount Steer wrote: ↑Wed Jul 31, 2024 9:28 amDepends what you're used to as a couple. eg If you've had a combined income of £200k+ then £44k will feel rather different. If you've survived on £50k you will probably feel better off. I'll see if I can dig out the Which? analysis on what you can actually do on a 'comfortable' amount. It's a pretty modest lifestyle in terms of holidays, cars, (and bicycles ), home improvements and general expenditure etc etc.weeksy wrote: ↑Wed Jul 31, 2024 9:11 am https://www.retirementlivingstandards.org.uk/
Not sure how the people who are retired/retiring view this... I still struggle a little with how £44,000 and no mortgage only equates to 'comfortable', i'd have thought it'd be a bit more than comfortable.
That's then not including that Mrs Weeksy would have a job/pension on top ... which again where the heck does all that go lol.
Maybe i'm seeing it with rose tinted glasses, but i honestly see say £44,000 as a great amount for retirement.
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
But certainty is an absurd one.
Voltaire
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
I was looking at Comfortable rather than ModerateCount Steer wrote: ↑Wed Jul 31, 2024 9:41 amThe £43.1k figure is for a couple.weeksy wrote: ↑Wed Jul 31, 2024 9:32 amWell yes i get that... but i always equate retiring with paying off the mortgage, which saves over £1000 (close to £1400) a month, so i see my 'need' as going down dramatically. I also struggle to see where £3000 a month goes and disappears to if you've not got a mortgageCount Steer wrote: ↑Wed Jul 31, 2024 9:28 am
Depends what you're used to as a couple. eg If you've had a combined income of £200k+ then £44k will feel rather different. If you've survived on £50k you will probably feel better off. I'll see if I can dig out the Which? analysis on what you can actually do on a 'comfortable' amount. It's a pretty modest lifestyle in terms of holidays, cars, (and bicycles ), home improvements and general expenditure etc etc.
That's then not including that Mrs Weeksy would have a job/pension on top ... which again where the heck does all that go lol.
Maybe i'm seeing it with rose tinted glasses, but i honestly see say £44,000 as a great amount for retirement.
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Ah. Righto. The key figure really is the £59k for a couple. TBH I could probably exist on £44k but my clothes budget is considerably less than hers.
Easiest way to do it is look through a month or two of bank statements and see what you actually both spend and what you both wouldn't spend after retiring.
Easiest way to do it is look through a month or two of bank statements and see what you actually both spend and what you both wouldn't spend after retiring.
Doubt is not a pleasant condition.
But certainty is an absurd one.
Voltaire
But certainty is an absurd one.
Voltaire
- weeksy
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Re: Pension stuff, how's it all looking ? HAve you prepared ?
Yeah i need at some stage to write a spreadsheet of what goes out in terms of bills.... but i don't think we're quite at the stage where that's necessary yet. It's mostly just me thinking "hmmm and oooh" when i see certain figures.... but i'd expect they've done a bit more indepth research than i have at this stage.Count Steer wrote: ↑Wed Jul 31, 2024 9:57 am Ah. Righto. The key figure really is the £59k for a couple. TBH I could probably exist on £44k but my clothes budget is considerably less than hers.
Easiest way to do it is look through a month or two of bank statements and see what you actually both spend and what you both wouldn't spend after retiring.