|
 Topic: Pensions
|
Page: 1 2 3 4
  |
11/8/2020 at 7:40am
Location:
Outfit:
View Profile
Reply
Quote
|
Joined: 17/12/2014 Platinum Member 
Forum Posts: 735
| Site Reviews Total: | 13 |
|
| Site Reviews 2025: | 0 |
| Site Reviews 2024: | 0 |
| Site Reviews 2023: | 0 |
| Site Reviews 2022: | 0 |
| Site Reviews 2021: | 0 |
| Site Reviews 2020: | 1 |
| Site Reviews 2019: | 1 |
|
| Site Nights 2025: | 0 |
| Site Nights 2024: | 0 |
| Site Nights 2023: | 0 |
| Site Nights 2022: | 0 |
| Site Nights 2021: | 0 |
| Site Nights 2020: | 7 |
| Site Nights 2019: | 5 |
|
Quote: Originally posted by Bridgelayer on 10/8/2020
Quote: Originally posted by woodman2 on 08/8/2020
Quote:
You get 20% tax relief on it, so for every £100 you bang into it, you get £120 back, and you can draw all your AVC's in a TAX FREE LUMP SUM.
Grumpy git Smiley
Are you sure that is correct ?
I did not think that AVC's were treated any differently for tax purposes than any other pension contributions.
I stand to be corrected if you know different.
Copied from Merseyside Pensions Fund page
Link
If you take your AVC at the same time you take your main LGPS benefits, you can take up to 100% of your AVC plan as tax-free cash (as long as your total lump sums from the LGPS do not exceed 25% of the combined value of your benefits including your AVC plan, or 25% of the lifetime allowance (£257,500 for the year 2018/19), or 25% of your remaining lifetime allowance if you have previously taken payment of any pension benefits).
If I understand the dteails quoted correctly Bridgelayer it simply means that you can shift some of the 25% allowance from your main pension to your AVC pension allowing you to take up to 100% of it tax free. The tax liability of your main pension however will therefore increase to compensate so the nett effect is zero.
Not something I had heard of before though.
Whatever you do, take care, and enjoy it.
|
12/8/2020 at 8:29pm
Location: West Yorks
Outfit: Gobur Carousel
View Profile
Reply
Quote
|
Joined: 24/5/2012 Platinum Member
Forum Posts: 745
| Site Reviews Total: | 1 |
|
| Site Reviews 2025: | 0 |
| Site Reviews 2024: | 0 |
| Site Reviews 2023: | 0 |
| Site Reviews 2022: | 0 |
| Site Reviews 2021: | 0 |
| Site Reviews 2020: | 0 |
| Site Reviews 2019: | 0 |
|
| Site Nights 2025: | 0 |
| Site Nights 2024: | 0 |
| Site Nights 2023: | 0 |
| Site Nights 2022: | 0 |
| Site Nights 2021: | 0 |
| Site Nights 2020: | 0 |
| Site Nights 2019: | 0 |
|
Woodman2, it's too late for me to worry about as I'se bin reetired for over 10 years now, but the buggers in DWP don't tell you anything about it. A simple note in your forecasts would help, if not by a lot, a little in your pocket is better off than in BJ's pocket.
(Still a grumpy owd git smiley)
-------------
Some days you are the dog,
some days you are the tree.
Goodbye tension, hello Pension!
|
|
via mobile 11/8/2020 at 1:49pm
