this is in regard to getting lump sum from another pension provider...but hopefully someone on here will be able to help.
the amount in pension/lump sum is £11,589
the advisor said first 25% is tax free
next £1,048 is tax free
next £3,142 is taxed at 20%
next £7,200 is taxed at 40%
any idea how much I'll actually end up with?
thanks.
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Lump sum final amount
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SWIM
- Posts: 416
- Joined: 11 Jan 2010, 20:33
- Gender: Male
Lump sum final amount
'deal of the century' - dingo
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Jaggs
- Posts: 134
- Joined: 18 Jan 2011, 11:18
- Gender: Male
Re: Lump sum final amount
That doesn't sound right to me. If you take the whole amount in one go you get 25% tax free and the rest is added to your income for the year and you pay tax at the relevant rates based on your other income.
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SWIM
- Posts: 416
- Joined: 11 Jan 2010, 20:33
- Gender: Male
Re: Lump sum final amount
he said something about tiers?
was totally confused.
your explanation sounds right.
thanks.
was totally confused.
your explanation sounds right.
thanks.
'deal of the century' - dingo
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RobertT
- EX ROYAL MAIL
- Posts: 6622
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: Lump sum final amount
It sounds like the advisor needs some advice! 
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heapsy
- Posts: 2935
- Joined: 02 Jun 2007, 23:40
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- Location: Drinking with Gangsters
Re: Lump sum final amount
I could be wrong here, but the original post mentions other provider. If the poster is still earning from RM, this could explain the adviors answer. Are you talking about taking the pension as a lump sum SWIM?