Interesting video - many thanks. Any chance you could do one on flexible access drawdown vs UFPLS? Not sure which would be more useful when drawing down chunks of cash (e.g. annually)
Can I take my DB pension at 60 then put 25% tax free from my DB pension and put into my DC pension and and gain the x 1.25, keep paying into DC pension and take the25 % tax free on DC pension at a later stage? Great channel by the way 👍
I’m not sure you can take 25% tax free from a DB pension, it would be written in the rules of the scheme. I know you can’t ‘recycle’ tax free cash through pensions - it would be a great idea if you could !. So the taxman might stop you doing what you suggest.
I work for Bt part b of the DB pension (80 th scheme) after 40 year you get half pay pension index linked and 1.5 years tax free lump sum with an option off less pension and more tax free lump sum, what would stop me putting enhance lump sum into my DC pension?
@@davehood1514 book an appointment with PensionWise Dave. They can give you accurate advice. I think the taxman will stop you taking a tax free withdrawal then asking the taxman to add 25% to it on another scheme !. PensionWise is your best source.
Yes, You can take the Tax-free cash from the DB scheme, and reinvest in your DC scheme. This shouldn't trigger the Money Purchase annual allowance. You will need to check your contribution allowance which is dependent on your salary. You can of course carry forward if that's a problem. I have videos on this. Consider salary sacrifice as an alternative to you making the contribution as you may get an NI uplift.
A bit unclear. Would benefit from: (a) 3 charts showing. £40,000 income - taken over 1, 2, 3 years. "Look people - being patient, I take it in March & April, not just March saves me £xx because I've spread it over 2 tax years" (b) £100k in my pension vs £50k in mine, £50k in wife pension (c) £25k in each of pension & ISA. Yes, I didn't get the tax relief but spare £1k - throw it into ISA in your 50s, 60s and this good housekeeping will help in holiday planning just 10years later"
Why are so many people against Annuitys, remeber you will soon get 11k state pension that goes up with inflation & currently annuities are curreny quiet high, with drawdown you have to spend time checking your not running out of cash.
People are against annuities because they are very bad value, they basically amount to giving an insurance company your money, they will invest it & give you the interest on that money every year. When you pass away, they keep the capital. I have 2 pensions, one a DC pension where I have paid in for 25 years & a previous DB pension with 10 years payments. This DB pension basically pays me an annuity. I’m really glad I have the other pension as this DB final salary pension is paying a low return & if I pass away before retiring my wife gets a pittance of the money.
Really? May want to reconsider your investment. Have a look at the S&P500 over the last 4 years. All that’s needed is a low cost index tracker. A globally diversified fund would return lower but have less volatility as well. Either way sounds like you haven’t got your money in a good pot.
@@jan2000nl What is a low-cost index tracker, Pls? Is Vanguard S & P 500 the one the account is opened with five hundred pounds then one deposits one hundred pounds monthly until retirement age or state pension age which is in ten years? I have a small workplace DB pension scheme so hope to buy additional pension contributions by paying installments until retirement age so I can have £25000 annual pension income upon retirement at state pension age, To achieve this, I have to contribute around £900 to £1000 per month to the workplace DB pension scheme. Is it better to half the amount and invest in the S &P 500 SIPP and ISA since annuities die with the individual?
Did you know this about flexi-access drawdown versus annuities?
No,everytime I learn something new with you.
under rated channel, very useful for everyone, the world needs more content like this! Thanks for putting in the effort
Brilliant video as usual,better than my private work pension provider a million times
Huge thanks
Glad it was helpful!
Thanks again for another great video.
My pleasure!
Interesting video - many thanks. Any chance you could do one on flexible access drawdown vs UFPLS? Not sure which would be more useful when drawing down chunks of cash (e.g. annually)
Thank you
Let's not forget the advantage of pension drawdown to financial advisers .... endless fees for every year of our retirement days.
Call me cynical .😢
Exactly- tired of poor returns whilst fund managers n advisors take their fees. Took back control. Advise was more about maintaining IFA involvement.
Can I take my DB pension at 60 then put 25% tax free from my DB pension and put into my DC pension and and gain the x 1.25, keep paying into DC pension and take the25 % tax free on DC pension at a later stage? Great channel by the way 👍
I’m not sure you can take 25% tax free from a DB pension, it would be written in the rules of the scheme. I know you can’t ‘recycle’ tax free cash through pensions - it would be a great idea if you could !. So the taxman might stop you doing what you suggest.
I work for Bt part b of the DB pension (80 th scheme) after 40 year you get half pay pension index linked and 1.5 years tax free lump sum with an option off less pension and more tax free lump sum, what would stop me putting enhance lump sum into my DC pension?
@@davehood1514 book an appointment with PensionWise Dave. They can give you accurate advice. I think the taxman will stop you taking a tax free withdrawal then asking the taxman to add 25% to it on another scheme !. PensionWise is your best source.
Yes, You can take the Tax-free cash from the DB scheme, and reinvest in your DC scheme. This shouldn't trigger the Money Purchase annual allowance. You will need to check your contribution allowance which is dependent on your salary. You can of course carry forward if that's a problem. I have videos on this. Consider salary sacrifice as an alternative to you making the contribution as you may get an NI uplift.
In layman's language, can you tell me what are the draw down and annuity? Thanks
IHT on Pensions changes everything
A bit unclear. Would benefit from:
(a) 3 charts showing.
£40,000 income - taken over 1, 2, 3 years. "Look people - being patient, I take it in March & April, not just March saves me £xx because I've spread it over 2 tax years"
(b) £100k in my pension vs £50k in mine, £50k in wife pension
(c) £25k in each of pension & ISA.
Yes, I didn't get the tax relief but spare £1k - throw it into ISA in your 50s, 60s and this good housekeeping will help in holiday planning just 10years later"
But I did just hit the like and subscribe buttons 😅
Why are so many people against Annuitys, remeber you will soon get 11k state pension that goes up with inflation & currently annuities are curreny quiet high, with drawdown you have to spend time checking your not running out of cash.
People are against annuities because they are very bad value, they basically amount to giving an insurance company your money, they will invest it & give you the interest on that money every year. When you pass away, they keep the capital.
I have 2 pensions, one a DC pension where I have paid in for 25 years & a previous DB pension with 10 years payments. This DB pension basically pays me an annuity.
I’m really glad I have the other pension as this DB final salary pension is paying a low return & if I pass away before retiring my wife gets a pittance of the money.
Look at annuities on 75th birthday when you start gifting on a major scale at start of the 7 year wind-down to dementia & check-out dates.
How do you know you are running out of cash if you don’t know how long you are on the planet
Poor advice I've hed a flexi drawdown pension for 4 years and zero growth
Really? May want to reconsider your investment. Have a look at the S&P500 over the last 4 years. All that’s needed is a low cost index tracker. A globally diversified fund would return lower but have less volatility as well. Either way sounds like you haven’t got your money in a good pot.
@@jan2000nl What is a low-cost index tracker, Pls? Is Vanguard S & P 500 the one the account is opened with five hundred pounds then one deposits one hundred pounds monthly until retirement age or state pension age which is in ten years? I have a small workplace DB pension scheme so hope to buy additional pension contributions by paying installments until retirement age so I can have £25000 annual pension income upon retirement at state pension age, To achieve this, I have to contribute around £900 to £1000 per month to the workplace DB pension scheme. Is it better to half the amount and invest in the S &P 500 SIPP and ISA since annuities die with the individual?