eagerbeaver:
I’ve recently turned 50 and have been looking forward to packing in work at 55. Yesterday I had a letter from one of my previous employers 'reminding ’ me that as of 6th April 2028 the early retirement age will be 57…
My plan was to wait until the following April after I turn 55 in the October so I could take advantage of the 12,750 personal allowance for the new tax year as I intend to cash my pensions in fully. 25% of the total amount(s) tax free & then the further above mentioned personal allowance off as well.
My intended date was…6/4/28. Pricks. .
Nothing’s changed. You turn 55 in Oct 2027. That means you have access to your pension pot from that date. Just because you wait until the following April to make use of another year’s personal allowance doesn’t mean you fall under the new rules.
You don’t have to but think of it like this, drawdown £1 on your 55th birthday then wait 6 months to drawdown the rest of what you want.
Remember you start to lose your personal allowance if your 75% pension drawdown exceeds £100k and you’ll be at 45% tax from £125k.
I hope you’ll take proper advice.
eagerbeaver:
I’ve recently turned 50 and have been looking forward to packing in work at 55. Yesterday I had a letter from one of my previous employers 'reminding ’ me that as of 6th April 2028 the early retirement age will be 57…
My plan was to wait until the following April after I turn 55 in the October so I could take advantage of the 12,750 personal allowance for the new tax year as I intend to cash my pensions in fully. 25% of the total amount(s) tax free & then the further above mentioned personal allowance off as well.
My intended date was…6/4/28. Pricks. .
Nothing’s changed. You turn 55 in Oct 2027. That means you have access to your pension pot from that date. Just because you wait until the following April to make use of another year’s personal allowance doesn’t mean you fall under the new rules.
You don’t have to but think of it like this, drawdown £1 on your 55th birthday then wait 6 months to drawdown the rest of what you want.
Remember you start to lose your personal allowance if your 75% pension drawdown exceeds £100k and you’ll be at 45% tax from £125k.
I hope you’ll take proper advice.
Nearer the time I will indeed take pro advice mate but many thanks for your input.
Hmmnn…take a £1 on my birthday and therefore theoretically start taking my pension so as to be able to then crack on as mentioned. I like the cut of your jib Stu
Great [emoji106] like I say, I suggest that for understanding, I don’t believe it is necessary, but if it gives you comfort, then great. What it does affect is how much you can continue to fund your pension drops from 40k p.a. to 4k p.a. as soon as you drawdown some pension.
Which is the hardest to carry out is, being skint on the morning of your death.
Timing is everything.
2, my aim exactly
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It appears a number of us are (to use a pointy shoe quote ) singing from the same hymn sheet.
Besides I started with very little and so can my kids, nothing wrong with a little pride & work ethic. I’m not living skint to earn a Dad of the year badge.
dozy:
It’s difficult with putting away saving for retirement as who knows how long there going to live , we’ve got private pensions , mrs has nhs pension & we’ve Isa,s , I’ve also opened 20 bonds , which we’ve stuck x amount of 1,000,s in to cover us for 20 yrs , 85 , but if we / one of us lives longer then who knows
I just think at 65 that should be enough , I agree with lollipop , I’d of done 53 yrs work by then , no break , will be enough , mrs the same ( though she’s a old nhs pension so could of retired at 55 ) she does 4 days x 6 hrs = 24 hrs so plods on , plans to retire 63 health allowing , can’t see passing another medical so March 62 yrs will be it for me , so will have to use savings to get to 65 ( maybe I can drive a van or something though )
You could have started drawing on your private pension since you were 55.
If you are most worried about your money running out then annuity rates are supposedly back up to 6% joint life, but then you need to decide what growth rate you want to pay for. I would prefer to keep control and use drawdown, and ideally use more money while I’m still younger.
You have a much better understanding of pensions stu , I don’t need the money so have not touched my pensions , I’ve still got my endowment from my mortgage ( we changed to repayment ) in a savings account , must be 20 yrs ago + now , just left it for a rainy day that’s never came , it’s hard to know what to do , live to 66 & you’ve made the wrong decision , live to 86 & made the right decision , that’s the issue we just don’t know how long your going to live , think it’s part of the older generations mentality, to save , youngsters seem to live for today
switchlogic:
I’m aiming for technically bankrupt and owing various companies many thousands. Doing all right so far
You sound quite proud to be in this position, I don’t actually know you but I can only imagine that you are putting on a front to find yourself in this position. Being bankrupt and owing thousands of pounds to companies is not something to aim for. Those companies may not be able to so easily swallow your debt.
switchlogic:
I’m aiming for technically bankrupt and owing various companies many thousands. Doing all right so far
You sound quite proud to be in this position, I don’t actually know you but I can only imagine that you are putting on a front to find yourself in this position. Being bankrupt and owing thousands of pounds to companies is not something to aim for. Those companies may not be able to so easily swallow your debt.
No you don’t know me. Try having them hassle your family to point of harassment over missed payments when you’re lying in hospital in a coma and then see if you come out the other side thinking ‘those poor companies’. They can all go f themselves far as I’m concerned. They created this attitude, no one else, f them
switchlogic:
I’m aiming for technically bankrupt and owing various companies many thousands. Doing all right so far
You sound quite proud to be in this position, I don’t actually know you but I can only imagine that you are putting on a front to find yourself in this position. Being bankrupt and owing thousands of pounds to companies is not something to aim for. Those companies may not be able to so easily swallow your debt.
No you don’t know me. Try having them hassle your family to point of harassment over missed payments when you’re lying in hospital in a coma and then see if you come out the other side thinking ‘those poor companies’. They can all go f themselves far as I’m concerned. They created this attitude, no one else, f them
Hear hear, the barstewards know how to kick a man (his family) when he is down. Royally F.them.
switchlogic:
No you don’t know me. Try having them hassle your family to point of harassment over missed payments when you’re lying in hospital in a coma and then see if you come out the other side thinking ‘those poor companies’. They can all go f themselves far as I’m concerned. They created this attitude, no one else, f them
Well that is a different slant on what you posted. I can now understand what you are saying rather than giving advice on purposely owing companies thousands of pounds and wrecklessly racking up debt for the sake of it which is how I sort of read and took it as.
switchlogic:
No you don’t know me. Try having them hassle your family to point of harassment over missed payments when you’re lying in hospital in a coma and then see if you come out the other side thinking ‘those poor companies’. They can all go f themselves far as I’m concerned. They created this attitude, no one else, f them
Well that is a different slant on what you posted. I can now understand what you are saying rather than giving advice on purposely owing companies thousands of pounds and wrecklessly racking up debt for the sake of it which is how I sort of read and took it as.
Fair enough I can how you thought that. My credit rating is so low now I couldn’t get credit if I tried anymore, which is a good thing! I used to worry myself sick over debt and paying it but now when they threaten County Court Judgements I just laugh and think join the queue!
switchlogic:
Fair enough I can how you thought that. My credit rating is so low now I couldn’t get credit if I tried anymore, which is a good thing! I used to worry myself sick over debt and paying it but now when they threaten County Court Judgements I just laugh and think join the queue!
The problem is with having a good credit rating is that it is so easy to get into a position of debt that is repayable when the going is good, however if you find yourself in the unfortunate position such as you found yourself in, even though you have stopped the debt does not, it comes down to both sides of the coin, irresponsible lenders and perhaps irresponsible borrowing in which we have all done. I would consider a voluntary bankrupcy in your position which would stop the debt accumilating and write it off. Yes it will affect your credit rating but does that really matter as your credit rating has already taken a hit. It would wipe your debt clean away otherwise the county courts etc are going to be a pain.
switchlogic:
Fair enough I can how you thought that. My credit rating is so low now I couldn’t get credit if I tried anymore, which is a good thing! I used to worry myself sick over debt and paying it but now when they threaten County Court Judgements I just laugh and think join the queue!
I don’t have very much, a 36 year old narrowboat, a 17 year old car, a 10 year old 125cc motorcycle and a 42 year old moped but also I do not have one single penny of debt, no mortgage, no bank loans, no credit card debt, no car finance, nothing. Every single penny I earn is mine to do exactly as I wish with.
And as an expression I once read has it “What you don’t owe can’t keep you awake at night”.
switchlogic:
Fair enough I can how you thought that. My credit rating is so low now I couldn’t get credit if I tried anymore, which is a good thing! I used to worry myself sick over debt and paying it but now when they threaten County Court Judgements I just laugh and think join the queue!
I don’t have very much, a 36 year old narrowboat, a 17 year old car, a 10 year old 125cc motorcycle and a 42 year old moped but also I do not have one single penny of debt, no mortgage, no bank loans, no credit card debt, no car finance, nothing. Every single penny I earn is mine to do exactly as I wish with.
And as an expression I once read has it “What you don’t owe can’t keep you awake at night”.
Very wise words and more should follow your example, live to your means leads to a happier life.
) singing from the same hymn sheet.