Lump Sums to AVC Application Deadline

[derricksmyth]

Has anybody heard if we get pse on these lump sums yet for certain?

I just rang pensions and they couldn't tell me, they said to ring wages but they close at 3. Will try them tomorrow!

[Hyrrokkin]

Has anybody heard if we get pse on these lump sums yet for certain?

I just rang pensions and they couldn't tell me, they said to ring wages but they close at 3. Will try them tomorrow!

How can pensions not know that ?

[derricksmyth]

Has anybody heard if we get pse on these lump sums yet for certain?

I just rang pensions and they couldn't tell me, they said to ring wages but they close at 3. Will try them tomorrow!

How can pensions not know that ?

I know it's crazy, I dialed the 03456030043 number

[Jefferson Starfish]

More of a wages thing, I would have thought.

[Sputters]

If someone is going to retire in the next 6 months . Would it still be worth putting the lump sum into their avc also how long would the 1000 have to be in the avc to make it worthwhile. Thanks

[heapsy]

Has anybody heard if we get pse on these lump sums yet for certain?

I just rang pensions and they couldn't tell me, they said to ring wages but they close at 3. Will try them tomorrow!

How can pensions not know that ?

I know it's crazy, I dialed the 03456030043 number

You might find, as I did when trying to find out the threshold for remaining within PSE, that they will tell you it constitutes financial advice and therefore they are unable to tell you.

[freespeech]

If someone is going to retire in the next 6 months . Would it still be worth putting the lump sum into their avc also how long would the 1000 have to be in the avc to make it worthwhile. Thanks

It's "worthwhile" straight away as a £1000 payment will cost you £800 so you have a free £200 straight away.

[Hyrrokkin]

Has anybody heard if we get pse on these lump sums yet for certain?

I just rang pensions and they couldn't tell me, they said to ring wages but they close at 3. Will try them tomorrow!

How can pensions not know that ?

I know it's crazy, I dialed the 03456030043 number

You might find, as I did when trying to find out the threshold for remaining within PSE, that they will tell you it constitutes financial advice and therefore they are unable to tell you.

Another stupid rule that prevents people getting information when they need it

[derricksmyth]

Has anybody heard if we get pse on these lump sums yet for certain?

I just rang pensions and they couldn't tell me, they said to ring wages but they close at 3. Will try them tomorrow!

How can pensions not know that ?

I know it's crazy, I dialed the 03456030043 number

You might find, as I did when trying to find out the threshold for remaining within PSE, that they will tell you it constitutes financial advice and therefore they are unable to tell you.

Another stupid rule that prevents people getting information when the need it

I rang wages this morning and waiting for their pension expert to get back to me. Will let you know

[stevejm]

If someone is going to retire in the next 6 months . Would it still be worth putting the lump sum into their avc also how long would the 1000 have to be in the avc to make it worthwhile. Thanks

As Robert has pointed out - we will have to pay 12% NIC on the £1400. This is £168

If you paid in £1750 to your pension - then you would be charged the £1400 of the bonus. You would avoid paying 20% tax on £1,400 and £168 NIC
End result you have £1,400 in your pension as opposed to £952 into your bank account.

You could then ask pensions to make a £1,400 withdrawal from your pension. You will be charged 25% tax (I believe) - so £1,050 would go into your bank account.

This would represent a 'gain' of £98 [1050-952]

Not giving this as advice at all. Would value Robert's opinion on this regards the maths.

*****************************************************

regards how long the money would have to be in the pension to 'make it worthwhile' - there are too many variables really including what 'worthwhile' means to you. My experience is that my pension pot has gone up 10-20% a year including ongoing contributions. Which is very good. Wish I had started when I was 18.

[heapsy]

If someone is going to retire in the next 6 months . Would it still be worth putting the lump sum into their avc also how long would the 1000 have to be in the avc to make it worthwhile. Thanks

As Robert has pointed out - we will have to pay 12% NIC on the £1400. This is £168

If you paid in £1750 to your pension - then you would be charged the £1400 of the bonus. You would avoid paying 20% tax on £1,400 and £168 NIC
End result you have £1,400 in your pension as opposed to £952 into your bank account.

You could then ask pensions to make a £1,400 withdrawal from your pension. You will be charged 25% tax (I believe) - so £1,050 would go into your bank account.

This would represent a 'gain' of £98 [1050-952]

Not giving this as advice at all. Would value Robert's opinion on this regards the maths.

*****************************************************

regards how long the money would have to be in the pension to 'make it worthwhile' - there are too many variables really including what 'worthwhile' means to you. My experience is that my pension pot has gone up 10-20% a year including ongoing contributions. Which is very good. Wish I had started when I was 18.

If someone had six months before retirement, then why not drip feed the money in each week? They would get both tax relief AND PSE. They would also benefit from averaging? It doesn't make sense to pay a lump sum in one go.

[Wullie10]

I'm in the process of waiting for Capita to sort out my pension and AVC , hopefully to be paid first week in November..paying any extra now could slow down or confuse the situation? Just to save a few hundred in tax ??

[stevejm]

If someone is going to retire in the next 6 months . Would it still be worth putting the lump sum into their avc also how long would the 1000 have to be in the avc to make it worthwhile. Thanks

As Robert has pointed out - we will have to pay 12% NIC on the £1400. This is £168

If you paid in £1750 to your pension - then you would be charged the £1400 of the bonus. You would avoid paying 20% tax on £1,400 and £168 NIC
End result you have £1,400 in your pension as opposed to £952 into your bank account.

You could then ask pensions to make a £1,400 withdrawal from your pension. You will be charged 25% tax (I believe) - so £1,050 would go into your bank account.

This would represent a 'gain' of £98 [1050-952]

Not giving this as advice at all. Would value Robert's opinion on this regards the maths.

*****************************************************

regards how long the money would have to be in the pension to 'make it worthwhile' - there are too many variables really including what 'worthwhile' means to you. My experience is that my pension pot has gone up 10-20% a year including ongoing contributions. Which is very good. Wish I had started when I was 18.

If someone had six months before retirement, then why not drip feed the money in each week? They would get both tax relief AND PSE. They would also benefit from averaging? It doesn't make sense to pay a lump sum in one go.

to avoid paying £168 NIC on the lump sum - by my understanding

[heapsy]

Exactly. And, you don't end up investing your money at too high a price.

[stevejm]

Where is "the new tile on the home screen with forms and FAQ" ?

I have looked for this and can't find it - a link to that page would be much appreciated - thanks