Anyone used PensionWise
Discussion
I'm 59 next April and am planning on taking my 25% cash free sum from my pension fund in the very near future with drawdown following on to try to minimise my tax paid before my state pension arrives in 8n years. I've currently got 2 pots - one with Zurich and one with Aviva that I do not pay into anymore as I stopped working 2 years ago.
I talked to Aviva today about this and they informed me that I should probably make sure that the crystallised funds are in the right place for later drawdown - i.e. either with Aviva or another provider to meet my goals.
It's the first time I realised that even crystallised funds could be transferred and I guess it applies to Zurich too.
So I've got my free meeting with pension wise next week and wondered how helpful the service is? Has anyone used them?
In addition, are there any online guides as to the most appropriate funds to be invested in as I make this transition. My Zurich pension fund is still mostly equities (Zurich Managed AP) but the Aviva is much lower risk with 50% Aviva Pensions My Future Focus Consolidation S6 and 50% Aviva Pensions Mixed Investment (40-85% Shares) S6.
I went through all this with a IFA about 4 years ago which led to me consolidate 4 pension plans into the above two but I wasn't overly impressed with the service and hope this is a less complex issue, hence the pension wise meet.
Cheers for any guidance.
I talked to Aviva today about this and they informed me that I should probably make sure that the crystallised funds are in the right place for later drawdown - i.e. either with Aviva or another provider to meet my goals.
It's the first time I realised that even crystallised funds could be transferred and I guess it applies to Zurich too.
So I've got my free meeting with pension wise next week and wondered how helpful the service is? Has anyone used them?
In addition, are there any online guides as to the most appropriate funds to be invested in as I make this transition. My Zurich pension fund is still mostly equities (Zurich Managed AP) but the Aviva is much lower risk with 50% Aviva Pensions My Future Focus Consolidation S6 and 50% Aviva Pensions Mixed Investment (40-85% Shares) S6.
I went through all this with a IFA about 4 years ago which led to me consolidate 4 pension plans into the above two but I wasn't overly impressed with the service and hope this is a less complex issue, hence the pension wise meet.
Cheers for any guidance.
I used them about 2 years ago, when I first turned 55.
They were really very good. Nothing earth shattering, but the lady I dealt with knew her stuff. She didn't give me any new information, but she confirmed that everything I'd surmised about my own situation and options was correct. Given that all it costs you is an hour of your time (+travel time) I would say there's no reason not to do it.
They were really very good. Nothing earth shattering, but the lady I dealt with knew her stuff. She didn't give me any new information, but she confirmed that everything I'd surmised about my own situation and options was correct. Given that all it costs you is an hour of your time (+travel time) I would say there's no reason not to do it.
omniflow said:
I used them about 2 years ago, when I first turned 55.
They were really very good. Nothing earth shattering, but the lady I dealt with knew her stuff. She didn't give me any new information, but she confirmed that everything I'd surmised about my own situation and options was correct. Given that all it costs you is an hour of your time (+travel time) I would say there's no reason not to do it.
Good to know, thanks!They were really very good. Nothing earth shattering, but the lady I dealt with knew her stuff. She didn't give me any new information, but she confirmed that everything I'd surmised about my own situation and options was correct. Given that all it costs you is an hour of your time (+travel time) I would say there's no reason not to do it.
Have a look at the sponsored threads at the top of this forum & in particular this one:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
If you want to chat about possibilites & alternatives then you can always contact Nik who can provide useful guidance.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
If you want to chat about possibilites & alternatives then you can always contact Nik who can provide useful guidance.
Burwood said:
Gary, you say you want to minimise your tax paid but drawing the full 25% will relatively maximise your future tax paid because once exhausted(25%) all future drawings will be taxed as income.
The idea being to take out £12500 each year until my state pension kicks in. The alternative, which is to take the 25% on every drawdown I don't think makes a huge difference.I don't think there's any way to minimise the tax beyond that, unless I'm missing something?
I think the point that Burwood was trying to make is that why take all the 25% now.
If you christianise as you need it, then next time you get 25% of the growth since you last took it and so on.
So an as an example if you crystallise £16K a year it would be all tax free, assuming you didn't have any other income. Your remaining pot would keep on growing and repeat until either it's all crystallise until your pot is gone or you get to state pension age.
In this way you get more tax free from your pot and than just taking 25% upfront, living off that for 10 years and then going back and paying tax on the rest, above the tax free threshold of course.
Clearly if your pot isn't big enough then it probably makes little difference.
If you christianise as you need it, then next time you get 25% of the growth since you last took it and so on.
So an as an example if you crystallise £16K a year it would be all tax free, assuming you didn't have any other income. Your remaining pot would keep on growing and repeat until either it's all crystallise until your pot is gone or you get to state pension age.
In this way you get more tax free from your pot and than just taking 25% upfront, living off that for 10 years and then going back and paying tax on the rest, above the tax free threshold of course.
Clearly if your pot isn't big enough then it probably makes little difference.
supersport said:
I think the point that Burwood was trying to make is that why take all the 25% now.
If you christianise as you need it, then next time you get 25% of the growth since you last took it and so on.
So an as an example if you crystallise £16K a year it would be all tax free, assuming you didn't have any other income. Your remaining pot would keep on growing and repeat until either it's all crystallise until your pot is gone or you get to state pension age.
In this way you get more tax free from your pot and than just taking 25% upfront, living off that for 10 years and then going back and paying tax on the rest, above the tax free threshold of course.
Clearly if your pot isn't big enough then it probably makes little difference.
Got ya!If you christianise as you need it, then next time you get 25% of the growth since you last took it and so on.
So an as an example if you crystallise £16K a year it would be all tax free, assuming you didn't have any other income. Your remaining pot would keep on growing and repeat until either it's all crystallise until your pot is gone or you get to state pension age.
In this way you get more tax free from your pot and than just taking 25% upfront, living off that for 10 years and then going back and paying tax on the rest, above the tax free threshold of course.
Clearly if your pot isn't big enough then it probably makes little difference.
Spreadsheet work underway.
garyhun said:
supersport said:
I think the point that Burwood was trying to make is that why take all the 25% now.
If you christianise as you need it, then next time you get 25% of the growth since you last took it and so on.
So an as an example if you crystallise £16K a year it would be all tax free, assuming you didn't have any other income. Your remaining pot would keep on growing and repeat until either it's all crystallise until your pot is gone or you get to state pension age.
In this way you get more tax free from your pot and than just taking 25% upfront, living off that for 10 years and then going back and paying tax on the rest, above the tax free threshold of course.
Clearly if your pot isn't big enough then it probably makes little difference.
Got ya!If you christianise as you need it, then next time you get 25% of the growth since you last took it and so on.
So an as an example if you crystallise £16K a year it would be all tax free, assuming you didn't have any other income. Your remaining pot would keep on growing and repeat until either it's all crystallise until your pot is gone or you get to state pension age.
In this way you get more tax free from your pot and than just taking 25% upfront, living off that for 10 years and then going back and paying tax on the rest, above the tax free threshold of course.
Clearly if your pot isn't big enough then it probably makes little difference.
Spreadsheet work underway.
https://youtu.be/AMJ8Ya3CPj4
garyhun said:
The idea being to take out £12500 each year until my state pension kicks in.
If you're a basic rate tax payer you can pay £2880 into a SIPP and get £720 topup from the gov each year. Rinse and repeat until your 75https://forums.moneysavingexpert.com/discussion/55...
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