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Post by martin44 on Jul 8, 2019 20:03:41 GMT
Had a quick scan.. and couldn't in the first instance spot a thread on the subject.... so..
I just made my first application to draw down a 25% tax free lump from one of my pots... old mutual... What a Kin Pa-lava... They almost convinced me it was their money i was after...
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Post by Deleted on Jul 9, 2019 7:30:47 GMT
What is your strategy going to be for your SIPP retirement activities? I'm at least 10 years away from having to implement mine but I'm interested in the thinking that people are developing since the strategy will have to work for the next 30 years or so under a raft of changing governments.
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hazellend
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Post by hazellend on Jul 9, 2019 8:08:25 GMT
What is your strategy going to be for your SIPP retirement activities? I'm at least 10 years away from having to implement mine but I'm interested in the thinking that people are developing since the strategy will have to work for the next 30 years or so under a raft of changing governments. I think it is best to plan based on the rules we currently have now. Future governments are hard to predict. The best strategy is probably to save harder and more than you are now, and make sure you use your full SIPP AA and LTA as well as maxing out ISAs. It is shameful behaviour by governments not guaranteeing people regarding future pension policy. Some will get repeatedly hammered
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Post by Deleted on Jul 9, 2019 8:19:45 GMT
Thank you Hazel, I do.
I was more thinking of the best method for extracting money from a SIPP. For example if you plan to live for 25 years, do you plan to take out 1% every year tax free and 3% every year to be taxed? Seems a simple idea but does it make sense?
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jul 9, 2019 8:24:11 GMT
Had a quick scan.. and couldn't in the first instance spot a thread on the subject.... so.. I just made my first application to draw down a 25% tax free lump from one of my pots... old mutual... What a Kin Pa-lava... They almost convinced me it was their money i was after... Not all pension providers can handle cash withdrawals. There may be high fees or charges for each withdrawal. There may be high tax charges. Only 25% of each withdrawal (or of your lump sum) is tax-free – the remaining amount is taxable and this may push you into a higher tax bracket. There may be a maximum limit on the number of times you can make cash withdrawals. The above is from the age UK website. It also states that one should seek advice from a financial adviser. Without knowing your specific situation any "advice" on strategy here may be wrong for you.
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agent69
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Post by agent69 on Jul 9, 2019 8:44:17 GMT
I was more thinking of the best method for extracting money from a SIPP.
I retired early recently, and currently take £16k / year from my SIPP (the most allowable without paying tax). I supplement this with savings, including running down my P2P investments, so that I can continue with my lavish lifestyle.
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hazellend
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Post by hazellend on Jul 9, 2019 8:44:50 GMT
Thank you Hazel, I do.
I was more thinking of the best method for extracting money from a SIPP. For example if you plan to live for 25 years, do you plan to take out 1% every year tax free and 3% every year to be taxed? Seems a simple idea but does it make sense?
In an ideal world I would want pension income to be up to 12k personal allowance and then use other tax free sources of income like ISAs and dividend allowance. Inheritance planning is another issue based on current rules. I’d like to retire at 50 and live another 35 years so am planning for that but I would like to leave a large inheritance to my kids as well.
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Post by Deleted on Jul 9, 2019 9:31:09 GMT
I retired at 50 some 10 years ago and plan to start pulling my SIPP in 10 years time, no kids. Really the question was to stimulate different thoughts and ideas. I guess logically I would use up cash outside ISA/SIPP, then suck dry the SIPP and finally use up ISA. I was more looking at understanding other strategies that might be more sophisticated.
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Post by dan1 on Jul 9, 2019 10:09:18 GMT
I retired at 50 some 10 years ago and plan to start pulling my SIPP in 10 years time, no kids. Really the question was to stimulate different thoughts and ideas. I guess logically I would use up cash outside ISA/SIPP, then suck dry the SIPP and finally use up ISA. I was more looking at understanding other strategies that might be more sophisticated. Some random thoughts.... ISAs & SIPPs are simply tax wrappers IMO (not to trivialise the complexities) I'd be inclined to maximise tax efficient draw downs from SIPPs (PCLS & maximising income to Personal Allowance/band below(?) your marginal rate), because... I view changes to pensions more likely than ISAs (e.g. PCLS) i.e. use SIPP draw downs to live on and top-up income from ISAs/feed excess into ISAs depending on needs I still think annuities/annuity-like products have their place as your mental faculties decline (secure income requiring no management, cash not available to unscrupulous folk) Really it depends on your level of wealth and future liabilities (are they even in GBP, for example).
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mary
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Post by mary on Jul 9, 2019 10:48:19 GMT
I retired at 50 some 10 years ago and plan to start pulling my SIPP in 10 years time, no kids. Really the question was to stimulate different thoughts and ideas. I guess logically I would use up cash outside ISA/SIPP, then suck dry the SIPP and finally use up ISA. I was more looking at understanding other strategies that might be more sophisticated. I spoken with many advisors, general rule... Live-off/Spend non-protected Assets first. (Being aware of any Capital Gains tax issues). Then ISAs. Then take from SIPP. Only SIPP can be passed on avoiding Inheritance Tax, beyond your Spouse. Taking pensions last gives them the maximum time to grow. If your Assets are large and complex then you are likely rich enough for a more sophisticated strategy and can afford to pay expensive advisors to to sort it all out.
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annie
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Post by annie on Jul 9, 2019 11:47:27 GMT
There is never going to be a single correct solution. For example, depending on the surveys you read I am either in top 5% or top 1% of UK wealth, but I don't see myself as wealthy, only comfortable. The key to enough income is not too much expenditure ( whatever level you are at) That said, my general outlook (retired at 54 about 4 years ago) is this. Transfer of final salary pension so kids can inherit lump sum, lost if pension goes into drawdown. Other private pension is used to generate max tax free income, having already withdrawn 25% tax free. This means after, say, 10 years I will have withdrawn a decent sum tax-free for capital expenditure like moving home. If I wait until I need it I'd be taxed as over annual income allowance. Meantime I use savings (ISA/deposits) for day to day expenses, with some in fixed interest deposits so not completely at mercy of stock market. Review again when state pension is payable. Key is, this is NOT advice and you need to consider your own circumstances and plans.
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macq
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Post by macq on Jul 9, 2019 12:46:18 GMT
I have found the tax guides on the Low Incomes Tax Reform Group website good for a retiring family member (and pensioners in general) when they were checking stuff.But the name of the group does not reflect a lot of what they cover or who it may be of use to whatever their age,job or income i.e student to armed forces to self employed Also was not used but there is the Govt. pension wise service which offers a free up to 60 mins consult which maybe of use before seeing an IFA
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hazellend
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Post by hazellend on Jul 9, 2019 13:15:30 GMT
Thank you Hazel, I do.
I was more thinking of the best method for extracting money from a SIPP. For example if you plan to live for 25 years, do you plan to take out 1% every year tax free and 3% every year to be taxed? Seems a simple idea but does it make sense?
Do you still put your 2880 per year back into your SIPP once you enter drawdown for the free 720 per year ?
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Post by Deleted on Jul 9, 2019 15:21:03 GMT
Great question. I've not drawn down yet so "maybe" but I still put 2880 into my SIPP every year. Mainly because I can.
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duck
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Post by duck on Jul 9, 2019 16:22:28 GMT
I've had notification that my pension value had dropped from £8 to £6 per year ........... so what shall I do with that £1.50
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