Cost of Living

[egg]

23 minutes ago, whelk said:

Was 25% of lump sum was tax free and pay tax on rest. Also the age was 55 when you can cash in but that might be changing.

It's 55 at the moment but goes up to 57 in 2030. I'm caught by the changeover. 

[Whitey Grandad]

3 hours ago, whelk said:

Was 25% of lump sum was tax free and pay tax on rest. Also the age was 55 when you can cash in but that might be changing.

More about it here,

https://www.gov.uk/tax-on-your-private-pension/lump-sum-allowance

Bear in mind that this lot are so desperate for money that they will steal it off anyone and everyone.

It used to be the case that the government was worried about an aging population not being able to support itself so they encouraged everyone to build up their pensions and even made employers introduce Auto-Enrolment. They forgot to mention that they would be back to steal it later.

It used to be that having a pension fund was important planning for Inheritance Tax purposes but now that this lot have said that they will include pensions in your estate for Inheritance Tax purposes it makes no sense to save for your old age. You might very well consider spending it all on having a good time and letting the State look after you if you are lucky enough to get old.

[Turkish]

1 hour ago, Whitey Grandad said:

More about it here,

https://www.gov.uk/tax-on-your-private-pension/lump-sum-allowance

Bear in mind that this lot are so desperate for money that they will steal it off anyone and everyone.

It used to be the case that the government was worried about an aging population not being able to support itself so they encouraged everyone to build up their pensions and even made employers introduce Auto-Enrolment. They forgot to mention that they would be back to steal it later.

It used to be that having a pension fund was important planning for Inheritance Tax purposes but now that this lot have said that they will include pensions in your estate for Inheritance Tax purposes it makes no sense to save for your old age. You might very well consider spending it all on having a good time and letting the State look after you if you are lucky enough to get old.

It makes you wonder what the point is. Might as well just rent somewhere for the rest of your life and bum off the state. I pay crazy amounts in income tax every year and very year they always want more as i posted the other day. They’ll take your pension off you you’ve worked all your life for and been told you had to have and if you want to leave anything to your kids they’ll take a good chuck of that off you too. 

[Whitey Grandad]

50 minutes ago, Turkish said:

It makes you wonder what the point is. Might as well just rent somewhere for the rest of your life and bum off the state. I pay crazy amounts in income tax every year and very year they always want more as i posted the other day. They’ll take your pension off you you’ve worked all your life for and been told you had to have and if you want to leave anything to your kids they’ll take a good chuck of that off you too. 

Yep. Enjoy it while you can.

[Tamesaint]

4 hours ago, Turkish said:

It makes you wonder what the point is. Might as well just rent somewhere for the rest of your life and bum off the state. I pay crazy amounts in income tax every year and very year they always want more as i posted the other day. They’ll take your pension off you you’ve worked all your life for and been told you had to have and if you want to leave anything to your kids they’ll take a good chuck of that off you too. 

Yes but as Whitey said, you do not pay tax on money that you put into your pension. Paying extra into your pension is a good way to reduce the amount of tax that you pay now. 

[Turkish]

3 hours ago, Tamesaint said:

Yes but as Whitey said, you do not pay tax on money that you put into your pension. Paying extra into your pension is a good way to reduce the amount of tax that you pay now. 

So they can’t take more off you when you need it

[egg]

58 minutes ago, Turkish said:

So they can’t take more off you when you need it

Not really. Inheritance tax planning involves exactly that, planning. Box clever, and the system can work for you, not against you. 

I take advantage of the higher rate tax relief to keep my tax down, so I essentially get free money every time I pay into my pension, and a reduction when I submit my return. 

I hold my fund within a SIPP. Two advantages.

Firstly, how much cash I take, and when (after age 57), is up to me. I will make sure that I draw down within the standard rate tax limit, meaning that I'm gaining from the pension tax system, not losing.

Secondly, a SIPP will survive me and can be left to beneficiaries without paying inheritance tax. Here's James Hay's brief summary on the tax position -

"What is the tax treatment of my SIPP when I die?

One of the advantages of a Self-invested personal pension (SIPP) is the tax advantages on your death. Death benefits are normally paid without incurring inheritance tax and if you die before age 75, there is generally no income tax liability, subject to the 2 year time limit. If you die after the age of 75, the death benefits will be subject to income tax at the recipient’s marginal rate".

In summary, use the system to your advantage, and take some proper advice. Your existing pension funds may well be transferrable into a SIPP and whether that's possible, or wise  is something to consider. I know excellent people who'll guide you - PM me if you wish. 

[Turkish]

18 minutes ago, egg said:

Not really. Inheritance tax planning involves exactly that, planning. Box clever, and the system can work for you, not against you. 

I take advantage of the higher rate tax relief to keep my tax down, so I essentially get free money every time I pay into my pension, and a reduction when I submit my return. 

I hold my fund within a SIPP. Two advantages.

Firstly, how much cash I take, and when (after age 57), is up to me. I will make sure that I draw down within the standard rate tax limit, meaning that I'm gaining from the pension tax system, not losing.

Secondly, a SIPP will survive me and can be left to beneficiaries without paying inheritance tax. Here's James Hay's brief summary on the tax position -

"What is the tax treatment of my SIPP when I die?

One of the advantages of a Self-invested personal pension (SIPP) is the tax advantages on your death. Death benefits are normally paid without incurring inheritance tax and if you die before age 75, there is generally no income tax liability, subject to the 2 year time limit. If you die after the age of 75, the death benefits will be subject to income tax at the recipient’s marginal rate".

In summary, use the system to your advantage, and take some proper advice. Your existing pension funds may well be transferrable into a SIPP and whether that's possible, or wise  is something to consider. I know excellent people who'll guide you - PM me if you wish. 

As you can probably tell I’ve got no idea about most of this stuff so really need to do some research. I should be mortgage free with a decent pension by the time I’m sixty if all goes according to plan so the idea was to downsize and use some of the pension pot to make some investments and work 2-3 days a week either on a consultancy basis or in a fairly easy job to keep ticking over so when I started to look into the tax implications it put a dampener on it all. Need to do some more research on stuff like SIPP, ISAs etc. Still got a a fair bit of time left but we all know how quick that goes 

[Challenger]

11 hours ago, Whitey Grandad said:

More about it here,

https://www.gov.uk/tax-on-your-private-pension/lump-sum-allowance

Bear in mind that this lot are so desperate for money that they will steal it off anyone and everyone.

It used to be the case that the government was worried about an aging population not being able to support itself so they encouraged everyone to build up their pensions and even made employers introduce Auto-Enrolment. They forgot to mention that they would be back to steal it later.

It used to be that having a pension fund was important planning for Inheritance Tax purposes but now that this lot have said that they will include pensions in your estate for Inheritance Tax purposes it makes no sense to save for your old age. You might very well consider spending it all on having a good time and letting the State look after you if you are lucky enough to get old.

Best just draw out all of your pension and hand it to any public sector workers that live near you. Will save your kids a lot of paperwork further down the line.

[egg]

45 minutes ago, Turkish said:

As you can probably tell I’ve got no idea about most of this stuff so really need to do some research. I should be mortgage free with a decent pension by the time I’m sixty if all goes according to plan so the idea was to downsize and use some of the pension pot to make some investments and work 2-3 days a week either on a consultancy basis or in a fairly easy job to keep ticking over so when I started to look into the tax implications it put a dampener on it all. Need to do some more research on stuff like SIPP, ISAs etc. Still got a a fair bit of time left but we all know how quick that goes 

My only comments would be to 1. take expert advice and listen to their suggestions; 2. using your ISA allowance is sensible and allows you to draw down capital tax free and is a sensible way to supplement income in retirement; 3. ask yourself whether it's wise to wait 10 years and miss out on 10 years of investment returns; 4. being mortgage free is great, but the equity in your home isn't working for you; 5. take advantage of tax breaks rather than being worried by the tax system. 

[tdmickey3]

54 minutes ago, Turkish said:

As you can probably tell I’ve got no idea about most of this stuff so really need to do some research. I should be mortgage free with a decent pension by the time I’m sixty if all goes according to plan so the idea was to downsize and use some of the pension pot to make some investments and work 2-3 days a week either on a consultancy basis or in a fairly easy job to keep ticking over so when I started to look into the tax implications it put a dampener on it all. Need to do some more research on stuff like SIPP, ISAs etc. Still got a a fair bit of time left but we all know how quick that goes 

Like you I had little idea about this stuff either but was recommend these people to assist with it, I feel its nearly impossible to ensure you make the right decisions without help, although egg seems clued up.

www.lionheartwealth.co.uk

 

 

 

 

[whelk]

51 minutes ago, Challenger said:

Best just draw out all of your pension and hand it to any public sector workers that live near you. Will save your kids a lot of paperwork further down the line.

Yeah it’s all the fucking public sector workers educating, protecting, caring for our vulnerable and healing us. How dare I pay taxes on my heard earned money only enabled by a functioning society.

[Turkish]

thank you guys, some good advice, much appreciated. 

[egg]

1 hour ago, tdmickey3 said:

Like you I had little idea about this stuff either but was recommend these people to assist with it, I feel its nearly impossible to ensure you make the right decisions without help, although egg seems clued up.

www.lionheartwealth.co.uk

 

 

 

 

Clued up, no, but I listen to people who are!! I did it my way for years and pushed my retirement back several years as a consequence. If hate to see anyone do the same. 

[tdmickey3]

17 minutes ago, egg said:

Clued up, no, but I listen to people who are!! I did it my way for years and pushed my retirement back several years as a consequence. If hate to see anyone do the same. 

Yep, its a minefield, hence I took up the advice from an expert.

[The Kraken]

Definitely get advice from an expert, I think that's a given.  But also be aware that there are plenty of ways these days where its much easier to monitor and/or manage your investments.

When I started investing many years ago, I used an IFA who basically took money off me each year and set up an ISA for me to pay into.  I got a letter once a year telling me how much my investments were worth.  I fairly soon realised that I was wasting money with this guy as he wasn't offering me any advice, I was just paying into a managed fund.  And he still got paid, even if my fund went down.

I've been using Hargreaves Lansdowne for many years for all my investments.  At any time I invest in around 5 managed funds within an ISA wrapper.  You can pay up to £20K into an ISA every year for tax free savings.  So get as much into that as you can, do it in yours and your partner's name to double up if you've got lots outside of an ISA.

I have ported all my previous workplace pensions into a SIPP within my Hargreaves account.  And much like my ISA, I invest in a number of managed funds with it.

I also have a savings account through HL for emergency cash savings.

That's something that works for me.  I like to check my investments every week or so, I can be very flexible about topping up funds.  And my ISA's are managed by experts, so I have a comfort level that they basically should jut track the markets.

On the flip side; three of my pals have no interest in self management and they use a financial adviser who they have all used for many years.  They seem really happy with him, they have an annual review to go through it.

Just a case of finding what works for you.

[Challenger]

5 hours ago, whelk said:

Yeah it’s all the fucking public sector workers educating, protecting, caring for our vulnerable and healing us. How dare I pay taxes on my heard earned money only enabled by a functioning society.

I chucked out that "bait" mostly as a joke but partly to see which thin-skinned individual would react the most,in that respect, you never disappoint.

No doubt my comments will not sit well with your fragile ego and with that in mind, I will grant you the last word on the subject as you will surely lose sleep if you don't.

[rooney]

2 hours ago, The Kraken said:

Definitely get advice from an expert, I think that's a given.  But also be aware that there are plenty of ways these days where its much easier to monitor and/or manage your investments.

When I started investing many years ago, I used an IFA who basically took money off me each year and set up an ISA for me to pay into.  I got a letter once a year telling me how much my investments were worth.  I fairly soon realised that I was wasting money with this guy as he wasn't offering me any advice, I was just paying into a managed fund.  And he still got paid, even if my fund went down.

I've been using Hargreaves Lansdowne for many years for all my investments.  At any time I invest in around 5 managed funds within an ISA wrapper.  You can pay up to £20K into an ISA every year for tax free savings.  So get as much into that as you can, do it in yours and your partner's name to double up if you've got lots outside of an ISA.

I have ported all my previous workplace pensions into a SIPP within my Hargreaves account.  And much like my ISA, I invest in a number of managed funds with it.

I also have a savings account through HL for emergency cash savings.

That's something that works for me.  I like to check my investments every week or so, I can be very flexible about topping up funds.  And my ISA's are managed by experts, so I have a comfort level that they basically should jut track the markets.

On the flip side; three of my pals have no interest in self management and they use a financial adviser who they have all used for many years.  They seem really happy with him, they have an annual review to go through it.

Just a case of finding what works for you.

Hargreaves Lansdown feed you plenty of information on a regular basis too.

[Tamesaint]

32 minutes ago, rooney said:

Hargreaves Lansdown feed you plenty of information on a regular basis too.

HL provide a very good service. Good app, good website and efficient dealing. 

I do however have doubts about some of the advice that they provide. They like to promote their own managed funds whilst the "wealth" funds they recommend are often not the best performers in a sector. 

[Whitey Grandad]

6 hours ago, whelk said:

Yeah it’s all the fucking public sector workers educating, protecting, caring for our vulnerable and healing us. How dare I pay taxes on my heard earned money only enabled by a functioning society.

If only it were all that simple.

From The Times this morning.

“NHS driving decline in public sector productivity“

“The NHS has driven declining efficiency and remains 18.5 per cent less productive than before the Covid lockdown, the figures suggest.“

[LGTL]

Far for me to cheat on the Saints Forum, but the MSE Forum is brilliant for this type of thing. Extremely knowledgeable people on there. 

[whelk]

2 hours ago, Challenger said:

I chucked out that "bait" mostly as a joke but partly to see which thin-skinned individual would react the most,in that respect, you never disappoint.

No doubt my comments will not sit well with your fragile ego and with that in mind, I will grant you the last word on the subject as you will surely lose sleep if you don't.

Ooh the puppet master. There was me thinking you were just one of these selfish cunts who think you deserve to keep all you earn. 

 

[egg]

1 hour ago, Tamesaint said:

HL provide a very good service. Good app, good website and efficient dealing. 

I do however have doubts about some of the advice that they provide. They like to promote their own managed funds whilst the "wealth" funds they recommend are often not the best performers in a sector. 

H&L promote some very average funds, but mostly I think their wealth shortlist is pretty reliable. That said, there's plenty of funds better than those they promote, and I'm always wary of funds that have a good year or so.

I use Trustnet for fund information and comparison. Really useful site. 

Although I use H&L, my main issue is that their platform fees are a tad high. 

[whelk]

1 hour ago, Whitey Grandad said:

If only it were all that simple.

From The Times this morning.

“NHS driving decline in public sector productivity“

“The NHS has driven declining efficiency and remains 18.5 per cent less productive than before the Covid lockdown, the figures suggest.“

That isn’t the same point though that I was responding to. Loads of the public sector needs sorting out as huge waste there esp NHS

[The Kraken]

54 minutes ago, egg said:

H&L promote some very average funds, but mostly I think their wealth shortlist is pretty reliable. That said, there's plenty of funds better than those they promote, and I'm always wary of funds that have a good year or so.

I use Trustnet for fund information and comparison. Really useful site. 

Although I use H&L, my main issue is that their platform fees are a tad high. 

I’ll check out Trustnet cheers, as I might be looking to change one of my funds.

I’ve heard it said that HL platform fees are higher than others, and it’s true, they just are.

I don’t really use HL for reviews of funds, I know someone who got caught out in the Woodford debacle so I take HL promotions with a pinch of salt.

Edited 22 hours ago by The Kraken

[Lord Duckhunter]

On 10/02/2025 at 17:06, Turkish said:

What happens if you take out a lump sum early? I've got a couple of pension plans one is a good one which i intend to keep going until i retire but the other is from an old employer, is a lot smaller but apparently i can cash it in in 7 years time the full amount would take about 3-4 years off the mortgage. Assume i'll be taxed a lot on it if i cash it in?

One other thing to watch out for is the rules around recycling. It’s complicated but basically it’s designed to stop people taking 25% tax free from one pension, reinvesting it into another pension & then getting 25% of that tax free. If you were looking to max out your yearly allowance you may fall foul of these rules, so defo seek professional advice. 
 

 

Edited 21 hours ago by Lord Duckhunter