£100k + Tax Advice

[omniflow]

TwigtheWonderkid said:

That argument doesn't really fly. So what. We're talking about a DB pension. You will probably die before selling your house and blowing all the proceeds. If you die before you can access a DB pension, it will just go into your estate for your dependents. And it'll be ringfenced against IHT. So if you're going to die young, it's a good place to have your money.

Of course it flies.

2 scenarios

You have 25%, 30% or whatever % of the money, and you get to spend it now on something you want or something you need.

OR

You put 100% into your pension, you die before you reach pension age, and then you NEVER get to spend it.

Yes, in scenario 2, your dependents will have a bit more cash, but is that REALLY what matters here? If that is your primary purpose in life, then that's really just a little bit sad. I'm on this earth to enjoy my time here, not to leave as much as possible to my dependents.

[PM3]

Put in pension or pay the tax already !

OP ;2 posts , 1st one ages ago ,deleted few minutes before posting " new" topic. Total follow up engagement .....zipp

[SSG1000]

Thanks all for the replies - guessing pension is the way to go on this one then!

RE the account - yes this is a burner, as I’m active on the car forums.

[okgo]

omniflow said:

Of course it flies.

2 scenarios

You have 25%, 30% or whatever % of the money, and you get to spend it now on something you want or something you need.

OR

You put 100% into your pension, you die before you reach pension age, and then you NEVER get to spend it.

Yes, in scenario 2, your dependents will have a bit more cash, but is that REALLY what matters here? If that is your primary purpose in life, then that's really just a little bit sad. I'm on this earth to enjoy my time here, not to leave as much as possible to my dependents.

Most people don’t die before pension age. Most people also are wildly far away from having enough in their pension. For almost all people, it makes sense to bolster the pension I would think.

[TwigtheWonderkid]

omniflow said:

TwigtheWonderkid said:

That argument doesn't really fly. So what. We're talking about a DB pension. You will probably die before selling your house and blowing all the proceeds. If you die before you can access a DB pension, it will just go into your estate for your dependents. And it'll be ringfenced against IHT. So if you're going to die young, it's a good place to have your money.

Of course it flies.

2 scenarios

You have 25%, 30% or whatever % of the money, and you get to spend it now on something you want or something you need.

OR

You put 100% into your pension, you die before you reach pension age, and then you NEVER get to spend it.

Yes, in scenario 2, your dependents will have a bit more cash, but is that REALLY what matters here? If that is your primary purpose in life, then that's really just a little bit sad. I'm on this earth to enjoy my time here, not to leave as much as possible to my dependents.

If it's something you need, then I don't think the OP would be posting. If he needs to money to get by, then of course he takes the money and pays the tax. Getting your home repossessed for not paying the mortgage whilst putting thousands into a pension is not smart, but I doubt anyone needs to be told that.

If it's something he wants, then of course he has a decision to make.

There's a third option. He doesn't need the surplus money and there's nothing he wants that he couldn't buy anyway without touching the excess money. In that case, having it in a pension as opposed to paying the tax and sticking the rest in a savings account which will be taxed again when he dies if he's over the IHT threshold, is a good idea.

[Sheepshanks]

TwigtheWonderkid said:

That argument doesn't really fly. So what. We're talking about a DB pension. You will probably die before selling your house and blowing all the proceeds. If you die before you can access a DB pension, it will just go into your estate for your dependents. And it'll be ringfenced against IHT. So if you're going to die young, it's a good place to have your money.

You’re describing a DC pension.

[loafer123]

One of the reasons I cashed out my DB pension was to ensure its value and income would be available to my wife and dependents on my death, not some reduced rate of income under the scheme rules.

[TwigtheWonderkid]

Sheepshanks said:

TwigtheWonderkid said:

That argument doesn't really fly. So what. We're talking about a DB pension. You will probably die before selling your house and blowing all the proceeds. If you die before you can access a DB pension, it will just go into your estate for your dependents. And it'll be ringfenced against IHT. So if you're going to die young, it's a good place to have your money.

You’re describing a DC pension.

Sorry, quite right. Which is what the OP has one assumes. i