Private pensions

[eebagum]

So you save up all your life. Had mine almost 30 years. Took my 25% tax free sum. And then you get taxed on your monthly payments from them. So paying tax on my job and tax on my pension. Thankfully I don't have a third job or i would be taxed again.
Was I right to take out a private pension. Well Mr tax man thinks so.

[HarleyPete]

Don't get me started on that. My employer has just completed a consultation to change our pension from LGPS to a separate company DC pension. The consultation was fair but there was the underlying option to "fire and rehire" if no agreement was made. Considering how long I've been in it and the contributions I've made (sad person me, I have all my payslips from day one and put it all down on a spreadsheet out of curiosity). I can't draw my pensions (state and private) till I'm 67. As far as I'm concerned, this constitutes a breach of verbal contract. I was told when I started work all those years ago that retirment age was 65. I hear now that there is a possibility of it going up to 71. Plus as you say, I will get taxed on the pension. What annoys me is that I've paid all I can in contributions through NI and can't improve my pot but I still have to pay it anyway.

[Dexter]

Hope that this provides some consolation but when you make your pension contributions they are not taxed beforehand, so you are not being paying tax on the same money twice. That said, it does stick in your throat as you feel that you are being pursued by the taxman both in work and retirement.

Under LGPS for every £5 you would pay into your LGPS pension your employer would contribute approximately £10. Any move to take you out of the LGPS is to save the school money by reducing this contribution. You will at le ast have your benefits, to date, index linked so that they retain their value. If more and more academies (?) do this then it may become a red flag for prospective employees.

If anyone wants to see their state pension prediction they should google the Government Gateway. Mine's at its max (£11,541 - new state pension) but if yours is lower, the Money Saving Expert website offers great advice on how to boost it.

[twiglets]

It's a difficult call taking private pensions early. I have one due to "target" date at 63. I'm 60. Do I take the 25%, take the pension and accept the tax? Do I hold onto it until 67, still will be taxed as above the threshold. I need to understand how much difference the money would be 4 years later (assumptions they call it). But, I'm sad to say being a morbid person, it you don't make circa 85, then you wouldn't have had your "share" of your investment (eg 85 is roughly the age that you could be assumed to be "making" money, although with inflation etc it's not really true).
My view is, you won't live forever. You can hold off as long as you like, but if you need the money now then take every penny you can. The taxman will still be chasing you after your dead anyhow

[Keyolder]

If anyone wants to see their state pension prediction they should google the Government Gateway. Mine's at its max (£11,541 - new state pension) but if yours is lower, the Money Saving Expert website offers great advice on how to boost it.

That’s good advice ^^^ I only found out I would not get the full state pension after I started claiming it. I was contracted out for a number of years, I had no idea beforehand.

True I’m compensated by the LGPS as the contracted out saving added to my LGPS pension, so in theory I’ve not lost anything.
As for income tax, I started paying it at age 16 and will continue paying it till I finally peg it

[EBJ]

I have a state pension and a private pension and still pay tax to the tax man, normaly get a demand in June and have to pay by the last day in the forthcoming January of next year. It also effects benafits i may have been enitled to if i just had the state pension only, feel as if i should go abroad become a citezen from a war torn country jump in a rubber boat and arrive at Dover and get every hand out under the sun.

[HarleyPete]

Hope that this provides some consolation but when you make your pension contributions they are not taxed beforehand, so you are not being paying tax on the same money twice. That said, it does stick in your throat as you feel that you are being pursued by the taxman both in work and retirement.

Under LGPS for every £5 you would pay into your LGPS pension your employer would contribute approximately £10. Any move to take you out of the LGPS is to save the school money by reducing this contribution. You will at le ast have your benefits, to date, index linked so that they retain their value. If more and more academies (?) do this then it may become a red flag for prospective employees.

If anyone wants to see their state pension prediction they should google the Government Gateway. Mine's at its max (£11,541 - new state pension) but if yours is lower, the Money Saving Expert website offers great advice on how to boost it.

AS far as I can tell according to the Government Gateway, my state pension is on it's maximum and can't get any higher.