stu675:
mac12:
I’ve been checking another pension and it’s got £64300 in it and they say it will pay £433
9 from the age of 65 for life so still going to be well into my 80s before being in profit£64,300 is only £45,000 after tax if you cash it in. So it will pay for itself in 10 years, i.e. live passed your 75th birthday.
Alternatively, you don’t have to turn it into that £4339 annuity, just put it into drawdown and you can take what you like out of it only paying income tax after the first 25%
That’s assuming he has done no other work as as soon as he hits the 40% threshold at £50270 any thing over that is 40% but the 1st 25% of the pension is tax free. Some pension companies but not all will automatically deduct 40% tax leaving you to deal with HMRC for the rebate