Change to the Pension Plans

col8

col8

Vital Football Legend
Anyone planning to get some of their pension pot?

The Government get 25% on the first withdrawl.......

Could this lead to people drawing their pension pot to take them below the poverty line allowing them to be entitled to more benifits that they DONT currently get because they have a pension!

Or just a money making plan by the government, draw down £20,000 of your pension and the Government get £5000 fr doing fuck all.

 
That's not quite right, Col. You get the first 25% tax free, not so if you take £20,000 you get £5,000 in your pocket, and then either £15,000 less 20%, 40% or 45% tax, depending on how much you already earn.

It's been around since 1995, in a less flexible form, and yet everyone is acting like it's new!!!!!!

Talk about buying votes. It's going to be a disaster, especially the helpline. :19: :19: :19: :19: :19: :19:
 
How much tax will I have to pay?
You can take 25% of your pension pot as a tax-free lump sum. Or you can take out smaller amounts, of which the first 25% will be tax free on each occasion.
But you will have to pay income tax on the amount you withdraw over and above the 25% tax-free allowance.
If that amount, added to the rest of your income, exceeds £42,386 (2015-16), for example, you will pay tax at 40% or more.
If the amount exceeds £100,000, you will begin to lose your personal allowance, resulting in an even higher tax charge.

Why would anyone want to exchange their monthly income for a short term lump sum, blow it pay a load of tax and then live on less?
 
I worked from leaving school in 96 an up until about 4 years up until now was out of work yet i have never had a pension cos every bloody company i ended up at ''we have just stopped our pension'' ffs LOL so om fecked
 
col8 - 6/4/2015 17:00

How much tax will I have to pay?
You can take 25% of your pension pot as a tax-free lump sum. Or you can take out smaller amounts, of which the first 25% will be tax free on each occasion.
But you will have to pay income tax on the amount you withdraw over and above the 25% tax-free allowance.
If that amount, added to the rest of your income, exceeds £42,386 (2015-16), for example, you will pay tax at 40% or more.
If the amount exceeds £100,000, you will begin to lose your personal allowance, resulting in an even higher tax charge.

Why would anyone want to exchange their monthly income for a short term lump sum, blow it pay a load of tax and then live on less?
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That's right mate. Just add the additional money to your income, and work out how much of it is liable to what rate.

Why anyone would do it - because they're stupid!!!! One of the worst ideas ever by a Chancellor. There will be a short term benefit for the Treasury, and a massive shortfall in tax in the future.
 
Clive I feel your pain, I guess I was just lucky, I do however wish now I had contributed AVC's to my pension over the years.
 
col8 - 6/4/2015 17:17

Clive I feel your pain, I guess I was just lucky, I do however wish now I had contributed AVC's to my pension over the years.
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Yeah bad timing and me am best buddies :17:
 
The only good thing about this legislation is it may actually encourage people to put money into pensions. One criticism was you could not get it all out again, but honestly, would you trust most people with their own money?
 
Planning for the future has hit me more as i got older, defo looking into private pensions now and also child ISA's, and life insiurance AVIVA have sent me some good deals tbf
 
ClivetheVillan - 6/4/2015 17:30

Planning for the future has hit me more as i got older, defo looking into private pensions now and also child ISA's, and life insiurance AVIVA have sent me some good deals tbf
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Dont leave it too long the years soon fly by.
 
Cracking Aviva deal like this ?

http://www.independent.co.uk/news/business/news/maxherve-george-the-man-fighting-a-merciless-legal-war-against-insurance-giant-aviva-10168427.html
 
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