Good month here with the PBs. £100 for me, £50 for Mrs Chaz and £75 for junior (including a £50). Had to get results from the main site as the prize checker app says results not yet available!
Advice please, re the Money Purchase Annual Allowance, I have 3 pensions, one of which I am now getting a monthly sum, does the MPAA apply to my 2 other pensions I have not cashed in yet i.e. is it £40k or £4k I can get tax relief on from my combined contributions to these 2?
Advice please, re the Money Purchase Annual Allowance, I have 3 pensions, one of which I am now getting a monthly sum, does the MPAA apply to my 2 other pensions I have not cashed in yet i.e. is it £40k or £4k I can get tax relief on from my combined contributions to these 2?
hope that makes sense - morning all
Have a look here, it partly depends on what you did with the one you are now drawing, was it an annuity, final salary etc? Chances are it's £4k limit now but does depend on your exact circumstances with the one you are drawing.
Advice please, re the Money Purchase Annual Allowance, I have 3 pensions, one of which I am now getting a monthly sum, does the MPAA apply to my 2 other pensions I have not cashed in yet i.e. is it £40k or £4k I can get tax relief on from my combined contributions to these 2?
hope that makes sense - morning all
Have a look here, it partly depends on what you did with the one you are now drawing, was it an annuity, final salary etc? Chances are it's £4k limit now but does depend on your exact circumstances with the one you are drawing.
Advice please, re the Money Purchase Annual Allowance, I have 3 pensions, one of which I am now getting a monthly sum, does the MPAA apply to my 2 other pensions I have not cashed in yet i.e. is it £40k or £4k I can get tax relief on from my combined contributions to these 2?
hope that makes sense - morning all
Pretty much you cannot draw pension money that’s had Tax Relief, and then pay it back into another pension and get Tax relief again. An saying that the money going in comes from salary, whilst you live on the pension doesn’t work. As that’s just basically the same thing. So I would say that if your drawing a monthly pension income, it’s likely you now only have the £4,000 allowance. But only my opinion.
Advice please, re the Money Purchase Annual Allowance, I have 3 pensions, one of which I am now getting a monthly sum, does the MPAA apply to my 2 other pensions I have not cashed in yet i.e. is it £40k or £4k I can get tax relief on from my combined contributions to these 2?
hope that makes sense - morning all
Pretty much you cannot draw pension money that’s had Tax Relief, and then pay it back into another pension and get Tax relief again. An saying that the money going in comes from salary, whilst you live on the pension doesn’t work. As that’s just basically the same thing. So I would say that if your drawing a monthly pension income, it’s likely you now only have the £4,000 allowance. But only my opinion.
Things may have changed, but this isn't the advice I received when I was made redundant and changed jobs. I started taking my DB pension simply because the discount factors that applied to "early retirment" were considerably better taking it on leaving the job than as a deferred pensioner. I was then able to open a new DC pension with my new employer. I was advised against taking tax free lump sum option though. Admittedly this was years ago and rules may have changed.
Advice please, re the Money Purchase Annual Allowance, I have 3 pensions, one of which I am now getting a monthly sum, does the MPAA apply to my 2 other pensions I have not cashed in yet i.e. is it £40k or £4k I can get tax relief on from my combined contributions to these 2?
hope that makes sense - morning all
Pretty much you cannot draw pension money that’s had Tax Relief, and then pay it back into another pension and get Tax relief again. An saying that the money going in comes from salary, whilst you live on the pension doesn’t work. As that’s just basically the same thing. So I would say that if your drawing a monthly pension income, it’s likely you now only have the £4,000 allowance. But only my opinion.
From the link I posted;
"The MPAA won’t normally be triggered if:
you take a tax-free cash lump sum and buy a lifetime annuity that provides a guaranteed income for life that either stays level or increases
you take a tax-free cash lump sum and put your pension pot into flexi-access drawdown but don’t take any income from it
you cash in a number of small pension pots valued at less than £10,000.
The MPAA only applies to contributions to defined contribution pensions and not defined benefit pension schemes."
Remember you can pay in whatever you like to a pension, it's just the tax efficiency we are talking about (and don't forget the LTA). That said, no real point unless you are filling up your ISA's putting into pension and not getting tax relief.
Shame to see such drops in indexes and funds of late! Focus on the long term and all that hey.
Not a great Q3, or Q4 coming up for that matter. Struggling to see any good news stories for the short term.
I cashed out some profit a while back so am starting to trickle it back in again. If you are a regular investor you want the ups and downs, today you are buying at 5% less than a month ago etc. As long as the long term trajectory is up it really doesn't matter.
Those who work in the industry or have their own experience of taking the CETF from a DB pension scheme. A few years back I was looking at taking a cash offer instead of my Lloyds bank pension, they basically offered me £32,000 in cash for each £1000 of pension I was entitled to.
A friend has just received and offer his pension trustees that is £211,000 if he gives up a £3000 annual pension. So that’s £70,000 cash for each £1,000 of pension. I’m astounded is that really the sort of figures that are currently being offered…. ???
Those who work in the industry or have their own experience of taking the CETF from a DB pension scheme. A few years back I was looking at taking a cash offer instead of my Lloyds bank pension, they basically offered me £32,000 in cash for each £1000 of pension I was entitled to.
A friend has just received and offer his pension trustees that is £211,000 if he gives up a £3000 annual pension. So that’s £70,000 cash for each £1,000 of pension. I’m astounded is that really the sort of figures that are currently being offered…. ???
It does seem a huge amount but DB schemes are trying to get the liability off their books & as Glits have dropped to their lowest values ever then I'm not surprised to see schemes offering "incentives" to get people to transfer away.
However, I will caveat that with this. Your friend will need to take advice from a DB Pension Specialist & this will not come cheap. Our firm offers this advice (I dont personally) but I'd imagine you are looking at a £10k fee.....and that has to be paid even if the advice is not to proceed (which is the FCA's starting point) and the FCA have made it very difficult to transfer out of DB schemes.
I've very nearly completed transferring a Lloyds pension. £4785pa = £164K. Although £22K is AVC's and the remaining contributory pension ran from 2001 to 2011, so your friend was likely in a better scheme.
I got just over 38x when I transferred out of my Barclays pension back in 2014. Don't think you can once drawing though.
I just got the same on my Barclays.
Strangely when it came through they'd added a few thousand on, wasn't going to complain! Pension wise the best thing I've ever done, in the 8 years since I must have almost tripled it.
Comments
Just looked and both say results available 2nd October 2021.
Father in law.........£25 - his winning streak lives on!
EDIT; what's interesting is both my wife and I have the maximum, but she's won roughly double me this year.
hope that makes sense - morning all
https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/money-purchase-annual-allowance-mpaa
"The MPAA won’t normally be triggered if:
The MPAA only applies to contributions to defined contribution pensions and not defined benefit pension schemes."
So a number of variables which only the OP knows.
Not a great Q3, or Q4 coming up for that matter. Struggling to see any good news stories for the short term.
However, I will caveat that with this. Your friend will need to take advice from a DB Pension Specialist & this will not come cheap. Our firm offers this advice (I dont personally) but I'd imagine you are looking at a £10k fee.....and that has to be paid even if the advice is not to proceed (which is the FCA's starting point) and the FCA have made it very difficult to transfer out of DB schemes.
Although £22K is AVC's and the remaining contributory pension ran from 2001 to 2011, so your friend was likely in a better scheme.
I'm uncertain if you can transfer out once it 's already being drawn. I'd guess not.