Pensions Rip Off

[big_cod]

Been speaking to my financial adverizer now if what he has just told me is right which i have no reason to dought the pension release in april sounds like the biggist con known to man .

He said HRMC are going to hammer you if you take any money out of your pot i was lead to belive if you are in the 20% bracket you would as long as you dont hit over into the higher tax bracket you will get taxed on any moneys at 20% now he says the way its been told any moneys you take out will be taxed at 50% rate he says the whole thing is sham as it stands they have there heads in there hands with it .

 

He said you might have to pay 50% tax on any monies drawn out then claim it back later it takes you hours to get through to HRMC nowadays with all the staff cuts but what a ploy to cut the deficite all your cash in the treasury coffers.

 

paul.

Edited April 1, 2015 by big_cod

[barry luxton]

think you might need to take a bit more advice from another source mate. Don't forget your mate brown robbed us all of pensions money to the tune of 5 bill a year, so they are all at it mate.

[big_cod]

think you might need to take a bit more advice from another source mate. Don't forget your mate brown robbed us all of pensions money to the tune of 5 bill a year, so they are all at it mate.

 

think you might need to take a bit more advice from another source mate. Don't forget your mate brown robbed us all of pensions money to the tune of 5 bill a year, so they are all at it mate.

Osborn could be the daddy here taking billions off the man in the street lets just wait and see it will be out in a weeks time an election bribe that could backfire massive lets just hope it is rubbish and it is the normal tax rate or there are going to be some very very unhappy people .

Edited April 1, 2015 by big_cod

[poledark]

And no doubt you will be getting a bill for that "advice". Fingers in the pie come to mind.

 

Den

[Huge_Vitae]

Been speaking to my financial adverizer now if what he has just told me is right which i have no reason to dought the pension release in april sounds like the biggist con known to man .

He said HRMC are going to hammer you if you take any money out of your pot i was lead to belive if you are in the 20% bracket you would as long as you dont hit over into the higher tax bracket you will get taxed on any moneys at 20% now he says the way its been told any moneys you take out will be taxed at 50% rate he says the whole thing is sham as it stands they have there heads in there hands with it .

 

He said you might have to pay 50% tax on any monies drawn out then claim it back later it takes you hours to get through to HRMC nowadays with all the staff cuts but what a ploy to cut the deficite all your cash in the treasury coffers.

 

paul.

Not at all true Paul, I don't know who your 'advisor' is but be very careful who you take advice from, speaking as a person 28 days away from pension age the rules are quite complicated but advantageous to all depending which path you follow, and yes, you can get hit by tax penalties in excess of any monies you recieve, but only if you do not follow the rules.

[big_cod]

Not at all true Paul, I don't know who your 'advisor' is but be very careful who you take advice from, speaking as a person 28 days away from pension age the rules are quite complicated but advantageous to all depending which path you follow, and yes, you can get hit by tax penalties in excess of any monies you recieve, but only if you do not follow the rules.

 

Very intersting i am well off retirement but i contracted out of SERPS in the 80ss and have a nice little pot if i want to take it but he said nothing has been fully clarified upto press regarding as what you will be taxed on if you decide to take any monies i know he has one or two clients with into millions he has invested for them i will be speaking to somebody else today regarding this but the lad has done buisness for me in past and has done an excellent job he said its HRMC which are the problem .

 

paul.

[Mat Hillman]

You really need a new adviser matey!

 

Sounds like he is confusing the old and new rules!

 

under the new drawdown rules, you can take a 25% tax free lump sum on retirement same as before, You can then draw on the pension fund as income, and that money gets taxed at your normal tax rate, unless you draw enough to move your total income up to a higher bracket.

 

But unless you are very well off you may well be better off with an old style annuity rather than the new drawdown anyhow, an Annuity is guaranteed money for the rest of your life, with drawdown you risk outliving the money in the pot and spending your final days living on just the basic state pension!

 

 

Mat

[poledark]

I can forsee the situation where some will take the money and spend the lot in a few months, and then ending up on benefits to top up the OAPension. "There will be trouble in store"

 

Den

[Vagabond]

You really need a new adviser matey!

 

 

But unless you are very well off you may well be better off with an old style annuity rather than the new drawdown anyhow, an Annuity is guaranteed money for the rest of your life, with drawdown you risk outliving the money in the pot and spending your final days living on just the basic state pension!

Paul, and anyone else coming up to pension age, you do need to take note of the above.

 

 

As I approached 65 (back in 1998) I remember how each of my three pension outfits (state, occupational and free-standing) each tried to chisel me out of part of my pension.

 

Fortunately I am numerate and can write an assertive (some would say abrasive) letter, which saw off the state pension "errors" (as they described them whilst climbing down).

 

I also kept all my salary slips, which saw off my occupational pension providers who were trying to reduce my "eligible years".

 

The free standing pension tried to get me to convert to a "with profits" policy, which was alleged to increase with time in line with the stock market. As we were then several months into a Labour government I could not see too much expansion coming, so elected to stay with a fixed rate.

 

My "adviser" was obviously on a good commission to persuade me to change, and tried his best. No dice. He did not actually call me a senile old fool, but his body language made clear that is what he was thinking ! I checked a couple of years later, and if I had changed, I would have by then have got just 20% of the fixed rate I opted for.

 

So opting for the old style annuity may well be best, although if Labour win the next election, their policies might well kick-start inflation, so some sort of inflation-linked deal might be prudent.

 

...and Paul, the big difference is that nobody was able to stop Brown raiding pensions - with Osborne's proposals, what happens to your pension is down to you.

Make sure you get good advice, and don't let politics sway your decision or your pocket may regret it.

[Vagabond]

http://www.bbc.co.uk/news/business-31769063

 

Take a look at that, it expands on what I said three days ago in my previous post