Standard Life pension pot?
Discussion
I am getting within a year of having access to the Pot held with standard life
my aim is to take the 25% tax free lump sum straight away leaving 75% to be drawn down
over 144 payments to last until SPA kicks in and the pot is empty
This is an additional amount to be added to employers pension already paying out.
the SL fees are very low as discounted from being linked with previous employer.
Is this as simple as it is in reality?
is the remaining pot crystallized when I start taking the payment and lump sum?
or does it remain in the investments with SL and have the ability to grow and drop with the market.
My employers pension was simple: lump sum then monthly payment till I die.
widows pension is applicable(no children).
It may be a daft question but there you go it is one I wanted to ask PH before the time arrives and I speak to SL whom may offer advice that suits
SL rather than suiting me fully.
my aim is to take the 25% tax free lump sum straight away leaving 75% to be drawn down
over 144 payments to last until SPA kicks in and the pot is empty
This is an additional amount to be added to employers pension already paying out.
the SL fees are very low as discounted from being linked with previous employer.
Is this as simple as it is in reality?
is the remaining pot crystallized when I start taking the payment and lump sum?
or does it remain in the investments with SL and have the ability to grow and drop with the market.
My employers pension was simple: lump sum then monthly payment till I die.
widows pension is applicable(no children).
It may be a daft question but there you go it is one I wanted to ask PH before the time arrives and I speak to SL whom may offer advice that suits
SL rather than suiting me fully.
With 144 payments I'm assuming you are 55 now and state pension at 67?
If so then your pot is crystallised when you take your tfc. The balance of funds remain invested in which ever fund you have chosen and will be drawn down by whatever amount you have instructed them be it monthly , quarterly or what ever.
Yes this means the remaining 75% is at the mercy of the markets, might go up ....might go down so choose your fund bearing this in mind.
If you don't need the full monthly amount then why draw it down as you will be paying tax on it so if not needed it maybe best kept within the pension pot to grow longer term.
You could consider drawing adhoc lump sums from the remaining 75% as and when needed but of course it would be added to that years income for tax purposes so try to avoid being pushed into the next tax bracket.
In essence what you have described can be as simple as that if your intention is to deplete all the funds by SPA.
If I'm.barking up the wrong tree or misunderstood your post then just fire away.
If so then your pot is crystallised when you take your tfc. The balance of funds remain invested in which ever fund you have chosen and will be drawn down by whatever amount you have instructed them be it monthly , quarterly or what ever.
Yes this means the remaining 75% is at the mercy of the markets, might go up ....might go down so choose your fund bearing this in mind.
If you don't need the full monthly amount then why draw it down as you will be paying tax on it so if not needed it maybe best kept within the pension pot to grow longer term.
You could consider drawing adhoc lump sums from the remaining 75% as and when needed but of course it would be added to that years income for tax purposes so try to avoid being pushed into the next tax bracket.
In essence what you have described can be as simple as that if your intention is to deplete all the funds by SPA.
If I'm.barking up the wrong tree or misunderstood your post then just fire away.
Pot value circa 50k it was a top up pension when the final salary pension scheme was closed
so I added funds to the SL Retirement savings scheme for 12months.
I will not be near the higher rate tax bracket, it will be just an additional £250ish added to my existing pension
I am 54 now but will hit 55 next year,
I have the married tax allowance from my wife added to my own allowance.
I was looking at taking the 25% tax free then the remainder till SPA at 67.
the pot is no where near big enough to grow any significant amount,
hence the take 144 payments to draw it down to zero in time for SP to commence.
if this is feasible and not a stupid plan it is what I was hoping to achieve.
but I have no real experience of DD pension.
so I added funds to the SL Retirement savings scheme for 12months.
I will not be near the higher rate tax bracket, it will be just an additional £250ish added to my existing pension
I am 54 now but will hit 55 next year,
I have the married tax allowance from my wife added to my own allowance.
I was looking at taking the 25% tax free then the remainder till SPA at 67.
the pot is no where near big enough to grow any significant amount,
hence the take 144 payments to draw it down to zero in time for SP to commence.
if this is feasible and not a stupid plan it is what I was hoping to achieve.
but I have no real experience of DD pension.
VTC said:
Pot value circa 50k it was a top up pension when the final salary pension scheme was closed
so I added funds to the SL Retirement savings scheme for 12months.
I will not be near the higher rate tax bracket, it will be just an additional £250ish added to my existing pension
I am 54 now but will hit 55 next year,
I have the married tax allowance from my wife added to my own allowance.
I was looking at taking the 25% tax free then the remainder till SPA at 67.
the pot is no where near big enough to grow any significant amount,
hence the take 144 payments to draw it down to zero in time for SP to commence.
if this is feasible and not a stupid plan it is what I was hoping to achieve.
but I have no real experience of DD pension.
It sounds like a plan just be aware that if you fund takes a bit if hit towards the end you may be left with an empty pot before SPA at which point you may be accustomed to the extra 250 and may have to.go a year or two without it.so I added funds to the SL Retirement savings scheme for 12months.
I will not be near the higher rate tax bracket, it will be just an additional £250ish added to my existing pension
I am 54 now but will hit 55 next year,
I have the married tax allowance from my wife added to my own allowance.
I was looking at taking the 25% tax free then the remainder till SPA at 67.
the pot is no where near big enough to grow any significant amount,
hence the take 144 payments to draw it down to zero in time for SP to commence.
if this is feasible and not a stupid plan it is what I was hoping to achieve.
but I have no real experience of DD pension.
Ok thanks all
I will check what the SL did allows.
I will check with them
I was sort of hoping once started the figures would be sort of set but if the investment pot drops so will the
Total pot remaining.
What other options would be suggested?
Lump sums annually rather than monthly?
All of it will be subject to tax after the initial tax free lump sum.
I will check what the SL did allows.
I will check with them
I was sort of hoping once started the figures would be sort of set but if the investment pot drops so will the
Total pot remaining.
What other options would be suggested?
Lump sums annually rather than monthly?
All of it will be subject to tax after the initial tax free lump sum.
You can usually set up either fixed income amounts say £250 but as mentioned if the fund value dives because of investment movement then your £250 is going to eat into rhe pot proportionately quicker hence you could run out.
The alternative is (if they do it) to set up a % withdrawal of say 8.3% each year. Of course you will get a fluctuating income this year but at least you know it will last the full 12 years.
Lots of wus to do it just need to work out what's nest for you
The alternative is (if they do it) to set up a % withdrawal of say 8.3% each year. Of course you will get a fluctuating income this year but at least you know it will last the full 12 years.
Lots of wus to do it just need to work out what's nest for you
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