West Ham Online

"Been at the same company for 35 years.Manual job,back and hips are in poor shape.55 now may be able to take a small lump sum to take off the mortgage.And a pension that would enable me to go to a 4day week.Spoken to a couple of financial advisors,all they have done is tried to flog me something.Any advice welcome also the usual abuse I’ll take."

What company do you work for? Their HR department should provide you with all the info you need.

Hi Sent you who mail

"""If tax does happen to get deducted which shouldn’t have done then it can be claimed back but, bluntly, it is a pain to do so and so best avoided if possible."" If you can get your tax code sorted within the tax year current to the tax being deducted, you will get the tax back automatically, within your pension payment, from your pension provider.. The PAYE system is cumulative (unless on a week1/month1 basis), for both pensions and salaries."

"Some of the comments below are correct and some are complete bollocks. Dealing first with Defined Benefit schemes (often known as Final Salary schemes) there will be the offer of a guaranteed, index linked pension or a smaller guaranteed index linked pension plus a tax free cash sum. You can also ask the pension provider how much they will give you to give up your guaranteed benefits and transfer out the cash equivalent of those benefits to a personal pension. The if the cash equivalent transfer value is £30k or more then you must by law get an appropriately qualified financial advisor to analyse the transfer and state whether they recommend that you take the guaranteed benefits or transfer out the CETV. If the CETV is under £30k you do not have to take advice - you can just do it. Where the pension is not a DB / FS pension (with a few obscure exceptions), or is a DB/FS pension transferred to a personal pension, then 25% of the pension can be taken as a tax free cash lump sum. The other 75% that will be taxed as income does not have to be taken at the same time as the TFC - it can stay inside a pension wrapper which is known as a Drawdown pension. When the income part of the pension is taken (whether immediately or later through a Drawdown pension) the payments will be added to any other income of the person taking the pension and taxed at their highest marginal rate of tax when they decide to take it. Until the pension company has been given a tax code by HMRC they must apply ‘emergency tax’ to the income payments. As has been said, with the taxable income part it might be best to take a small monthly amount that would not, when taken over the course of a tax year, exceed the personal tax allowance, currently £12,570. For example, it might be worth taking just £500pm until HMRC provide the tax code. If tax does happen to get deducted which shouldn’t have done then it can be claimed back but, bluntly, it is a pain to do so and so best avoided if possible."

"To avoid the emergency tax can you take out a small amount say £1000 & then sort out the correct tax code & then take another £28,000 or so? Presume the government will reduce the £60,000 amount you can put in your pension in their first budget & maybe wind it back to £40,000. Discouraging people providing for themselves but it IS a massive lurk for higher rate taxpayers"

"To avoid the emergency tax can you take out a small amount say £1000 & then sort out the correct tax code & then take another £28,000 or so? Presume the government will reduce the £60,000 amount you can put in your pension in their first budget & maybe wind it back to £40,000. Discouraging people providing for themselves but it IS a massive lurk for higher rate taxpayers"

"If you're on a six-figure salary, you won't need a pension - just live off the change that you find down the back of your sofa."

Wealth advisers are scam artists and charlatans. Total snake oil salespeople.

"You do need to speak to a wealth advisor mate, they can often save you any fees you incur. Try Octopus Money"

Mac your right the emergency tax is approx 28% but you can claim it back within month l think the form was X53 or something like that

"Basically if it's a private pension take out £29,999 or less each year and you don't have to pay those rip off ""independent advisory"" charges"

"Mac - You have to call them anyway mate, if not it wouldn't just get done unauthorized would it, you have to tell them you want to cash in your pension and request the paperwork etc, so yes when I call them I will ask about it. Cheers."

I’d suggest you call the pension provider . There’s a formula for emergency tax but it’s Roughly about 28% But like I said call them beforehand mate

"Ok thanks, was never going to be straightforward was it. So if they do deduct tax would it be 20% of the remaining 15k?"

Unless given codes by hmrc etc

Under PAYE it’s their obligation to deduct tax

"The pension company have no automatic way of knowing you are a non tax payer hence why they apply emergency tax. However, speak to them beforehand as they may advise what you could do etc"

"The pension company have no automatic way of knowing you are a non tax payer hence why they apply emergency tax. However, speak to them beforehand as they may advise what you could do etc"

It's less than 30k.

"Thanks Mac. No, no other income and there hasn't been for a number of years now, I'm assuming that will show up for them to see in 'the system' rather than them just taking my word for it? With the above in mind would that mean I have no tax code? and why would they take emergency tax and refund me later if I'm not obligated to pay any tax anyway?"

As others have mentioned you can NOT transfer DB funds over £30k without advice given .

As others have mentioned you can NOT transfer DB funds over £30k without advice given .

If other income you just add all together just like PAYE

Correct but only if you have no other income coming in from any other sources. The pension company may tax the £15k at emergency rate if no tax code etc . You would then eventually get tax back

"Looking for some clarity on this, I understand when you are 55 you can cash in your private pension in full 25% is tax free and I understand the remaining 75% is taxed in the same way as if it was income, ie the first 12,500 is tax free and then any balance is taxed starting from 20%. So for example, if the pension was valued at 20k 5k is tax free then with the balance of 15k 12,500 of that isn't taxed and you then pay 20% on the remaining 2,500 is that correct? Thanks for any help TCTC"