10-10-2018, 11:00 AM
2
Re: Pension fund
Originally Posted by Gardiner03
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Hi. Soon after brexit I plan to cash in my pension. Is it likely to collapse or should I be ok.
HWMO cashed in one of his smaller pensions at the beginning of the year. From the time he was informed what the final figure was to 5 days later at the time it was deposited in his bank account, there had been a larger than usual dip on the stock market, although it rallied a couple of days later, he was still rather shocked at the loss of almost two thousand pounds from the final figure quoted. When he queried it with the pension fund, he was informed that the figure was calculated from when they signed the cheque! (very convenient).
I'm sure you already know this as well, but if you are cashing in your pension as a lump sum instead of drawdown, apart from 25% being tax-free, the other 75% will be taxed at 40%, regardless of whether you are a lower paying taxpayer. You will have to claim the 20% back from the taxman.
If we hadn't had the luxury of being able to afford to cash it in as a lump sum, I certainly wouldn't recommend a lump sum as being the right avenue for anyone, as the tax bill can be eye-watering! especially when you see it taxed at 40% on paper. LOL, you have to remind yourself that you can at least claim half of that back though.
Good luck whatever you decide to do.
Sorry can't be of much help with your query otherwise.
10-10-2018, 12:48 PM
3
Re: Pension fund
Originally Posted by Gardiner03
->
Hi. Soon after brexit I plan to cash in my pension. Is it likely to collapse or should I be ok.
My search for an annuity went out with the washing as soon as the referendum was over.
The wafflers will tell you it will be alright on the night, up to you if you believe them I'm afraid, I certainly don't.
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