Pension question

[brian_H]

Hi folks

I am 53, the wife is 54. I have 2 pensions, one old company one that was frozen in 98 when I left the company, the other is a private one that I am currently paying into. Under the new regulation allowing me to take 25% tax free at 55.....can this be done on both pensions or can I do it only once and have to choose which fund to take from?

Also, my wife's NHS pension has 60 years old as the earliest date she can take it. With the recent pension changes is that still set in stone or could she take hers at 55 too (with the obvious reduction in benefits of course).

I am not sure it is a relevant issue but we both own Ltd Companies

I am now getting pestered constantly by Pension Reviewers and wanted to get my facts straight before I start looking at our options.

Thanks for reading and thanks for anyone who advises or comments

Brian

[Ginge R]

Brian,

Your occupational pension, is it DB or DC? You have lots of flexibility in how you draw tax free cash - it needn't be in one big hit of 25%. Your wife can take an early NHS pension, but will the actuarial cut be worth it? Depending on your other circumstances, the drop in income may be offset by not paying so much tax. You both have Ltd companies; if you're looking to retire, have you researched Entrepreneurs Tax Relief? Don't talk to pension review companies; they're bottom feeders. It might be that just one specific tactic is to review the pensions, but only as a tactic and once you've got the much bigger picture, the strategy, mapped.

[brian_H]

HI Ginge

Thanks for the quick reply. Regarding the DB DC question. It is a final salary so I think that makes it a DB?

I haven't yet looked at the Entrepreneurs Tax Relief. It is something I am aware of but at the moment we are more thinking of retiring from Full Time Work so may still do the odd contract/work package so for the moment I am looking at keeping at least my company going. My wife's is more of a paid hobby at the moment as she doesn't even get past her Tax Free Allowance most of the time so hers may be closed.

As for the Pension reviewers/bottom feeders...told them to 'jog on'....but had to KEEP telling them as they rang back each week for about 2 months. I think they now take the hint!

Thanks for taking the time to respond. Much appreciated!

Brian

[JulianPH]

Just a note regarding pension review companies:

Anyone repeatedly cold calling you is not likely to be a qualified or regulated pension adviser - and the word "crooks" springs to mind.

However there are many FCA authorised and regulated companies that specialise in pension reviews.

It is worth noting the distinction.