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Warchest in pension fund and withdraw immediately at 55

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    Warchest in pension fund and withdraw immediately at 55

    Still a few years away, but if I would transfer my entire warchest into my pension fund it would be approx 25% of the total value of my pension fund.
    As you can withdraw 25% of your pension tax free at the age of 55 I was wondering what if I transfer my warchest a couple of months before I tuen 55 into my pension fund and then withdraw it taxfree the day I turn 55.
    This should have 2 advantages, no tax on divi's and no corporation tax for that tax year

    Would this be possible, legally?

    (NLUK I will ask my accountant later)

    #2
    1. There are limits on what you can put into your pension.
    2. You can only withdraw 25% a year.

    Comment


      #3
      They are changing the 55 to 57 then x years away from official state pension age. So check that you aren't in one of the age groups who will get caught.

      I'm only mentioning this because I have relations in their early 50's who thought they were retiring at 65 but are in the age groups who are in the transition to retire at 66.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        Originally posted by BrilloPad View Post
        1. There are limits on what you can put into your pension.
        2. You can only withdraw 25% a year.
        The maximum contributions is £40k a year, but you can carry some allowance over from previous years

        Also depends on how many a few years away is, as the minimum age is changing from 55 to 57 soon
        Last edited by SimonMac; 17 February 2016, 10:13.
        Originally posted by Stevie Wonder Boy
        I can't see any way to do it can you please advise?

        I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

        Comment


          #5
          Originally posted by SueEllen View Post
          They are changing the 55 to 57 then x years away from official state pension age. So check that you aren't in one of the age groups who will get caught.

          I'm only mentioning this because I have relations in their early 50's who thought they were retiring at 65 but are in the age groups who are in the transition to retire at 66.
          Cash in your pension at 55? You may have to wait till 70 - Telegraph

          It said access to your own money - self-invested personal pension or company scheme - while rightly being made much easier, would also be later. Five or 10 years below the state pension age was the initial suggestion.

          The Treasury, just a few months ago, opted for a more electorally palatable five years, starting in 2028. From then, the private pension age will rise to 57.

          Because from then your private pension age will rise with the state pension age, the following applies.

          If you're aged age 36 to 44**, you get your money at age 58. For Generation Y(ish), those from 23 to 35, the magic number is 59. For anyone younger, it will be at least 60.

          Comment


            #6
            Originally posted by SimonMac View Post
            The maximum contributions is £40k a year, but you can carry some allowance over from previous years

            Also depends on how many a few years away is, as the minimum age is changing from 55 to 57 soon
            First No.

            And secondly we posted the same thing! Great minds....
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #7
              Originally posted by SueEllen View Post
              First No.

              And secondly we posted the same thing! Great minds....
              HM Revenue & Customs: Pension schemes annual allowance checking tool - introduction

              From 6 April 2014 the annual allowance for tax relief on pension savings in a registered pension scheme was reduced to £40,000. This includes contributions made by anyone else into your pension such as your employer. If your pension savings exceed this amount you may have to pay a tax charge and give details of this on a Self Assessment tax return.
              Technically you can put in more than £40k, but it will cost you!
              Originally posted by Stevie Wonder Boy
              I can't see any way to do it can you please advise?

              I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

              Comment


                #8
                @Simonmac you changed your first question.
                "You’re just a bad memory who doesn’t know when to go away" JR

                Comment


                  #9
                  Originally posted by SueEllen View Post
                  @Simonmac you changed your first question.
                  Ah, I thought I did it quick enough, wasn't sure at first if the £40k was personal or total
                  Originally posted by Stevie Wonder Boy
                  I can't see any way to do it can you please advise?

                  I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

                  Comment


                    #10
                    Originally posted by BrilloPad View Post
                    Cash in your pension at 55? You may have to wait till 70 - Telegraph

                    It said access to your own money - self-invested personal pension or company scheme - while rightly being made much easier, would also be later. Five or 10 years below the state pension age was the initial suggestion.

                    The Treasury, just a few months ago, opted for a more electorally palatable five years, starting in 2028. From then, the private pension age will rise to 57.

                    Because from then your private pension age will rise with the state pension age, the following applies.

                    If you're aged age 36 to 44**, you get your money at age 58. For Generation Y(ish), those from 23 to 35, the magic number is 59. For anyone younger, it will be at least 60.
                    Since they are due to increase the state pension age again in the next few years I wouldn't take anything as gospel if you are under 55/6.

                    10 years is the time they have worked out you need to do sufficient extra pension planning.

                    They tend to make announcements and pass laws but the appropriate departments will still give out wrong pension information.
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment

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