Deferring state pension

[robs1]

Well I can only speak here relative to NFU, but you can take out the tax free lump sum and then move what's left in to a different fund where you can then withdraw from it as required. Anything you take out of it will just be considered as income.

I was recommended to consider drawing it out before I'd hit state pension age as there might be more scope to avoid paying tax on it. Whereas when I get the state pension I'll also be getting a small pension from my time as a tradesman and those two together will take me over my tax free allowance anyway.

It was good advice so I'll start drawing it down this financial year and probably just put it in to a savings account or such like.

Thats a good point, I will reach state pension in three years so need to take out a fair chunk before then, this year is going to have a big tax bill but next year less so due to the weather etc so might draw it all out next year and then invest some back into a the business to give me a better return than the pension will. Might look at some green energy project to get tax relief on

 

[yoki]

Thats a good point, I will reach state pension in three years so need to take out a fair chunk before then, this year is going to have a big tax bill but next year less so due to the weather etc so might draw it all out next year and then invest some back into a the business to give me a better return than the pension will. Might look at some green energy project to get tax relief on

It is a good point, and something I hadn't thought on until it was pointed out to me.

As he rightly said, for a self-employed person the state pension is quite unusual, as it is income that cannot be disputed or off-set against in anyway.

Another uptick for the NFU pensions advisors

 

[renewablejohn]

My father paid in from 15 years old Till 86 and i paid tax for him after he was dead, he created a bussines that employed 30 plus people and still to this day dose , all contributing all because of my father … yet when he went into care as his dementia got to bad for family to cope with they charged us £1250 a week, the system stinks. I despise the system and the good time free loading scumbags.

Pity they did not replace the QE2 as I would much prefer sailing continuous around the world on the QE2 then be stuck in a care home against my will at a higher cost.

 

[Hilly]

Pity they did not replace the QE2 as I would much prefer sailing continuous around the world on the QE2 then be stuck in a care home against my will at a higher cost.

It was considered at the time

 

[renewablejohn]

It was considered at the time

Just checked it would have been cheaper for my mother to be continuous cruising than locked in the care home not even being able to go to the pub. There is no justice through the English courts who are supposed to look after the vulnerable.

 

[farmideas]

I deferred and decided to leave it that way for a while. I have kept working on Practical Farm Ideas and really didn't feel much older when passing pension age. After 9 years I to cash in - the interest is compounded and has always been generous. I put it into a pension and so keep the tax relief, but will have to pay tax when I withdraw it. Think I did an article on it a while back.

 

[Exfarmer]

I deferred and decided to leave it that way for a while. I have kept working on Practical Farm Ideas and really didn't feel much older when passing pension age. After 9 years I decided to claim the £70k value as a lump sum - the interest is compounded and has always been generous. I put it into a pension and so keep the tax relief, but will have to pay tax when I withdraw it. Think I did an article on it a while back.

You are correct that the interest WAS generous, when you chose to defer, the situation changed a few years back and it is very different now. It may still be advantageous to a few to defer, but I could not make it add up 7 years, even though I had , some would say, considerable other income streams

 

[easy farming]

1st option isn't a goer , they've got enough out of me
Can I stick it in a SIPP

If you take them as an annuity yes. But not if you access it as draw down. I have done that with two small ones I had.

 

[Jasper]

Defer it yourself if you can manage without it . Draw it and put it under the bed and treat yourself occasionally

 

[Exfarmer]

Defer it yourself if you can manage without it . Draw it and put it under the bed and treat yourself occasionally

Actually there are some bank accounts paying a reasonable rate foe a regular deposit

 

[Pieces_of_Eight]

the pathetic one i have with nfu wont do a lot , maybe buy me a cornetto once a week as long i dont live to long into old age

My Grandad had a workplace pension from the 80's, paying him £9 a month

Also how long your going to live to recoup any deferred values??

He did get his £9/month for 30 years though, until he died a couple of months ago at 93.

Now the £9 can be inherited by his ex-wife who he was married to at the time!

I have about 25 years to get as much in my private pension as possible, as by then a state pension will only be given to people who make 100 years old (which means there will be no jobs for youths).

 

[steveR]

I have about 25 years to get as much in my private pension as possible, as by then a state pension will only be given to people who make 100 years old (which means there will be no jobs for youths).

Well, as we are looking at a massively ageing population, with birth rates plummeting and folks living longer, this might not be far away from the situation.

 

[Pieces_of_Eight]

Well, as we are looking at a massively ageing population, with birth rates plummeting and folks living longer, this might not be far away from the situation.

Don't forget AI (owned by big tech) taking all the actual jobs that people currently get paid to do.

 

[easy farming]

Well, as we are looking at a massively ageing population, with birth rates plummeting and folks living longer, this might not be far away from the situation.

In 25 years time most of the baby boomers will have popped their clogs, situation could be totally different. Although I agree we cannot trust government to look after us.

 

[Still Farming]

Well, as we are looking at a massively ageing population, with birth rates plummeting and folks living longer, this might not be far away from the situation.

And also remember people can claim work place pensions from 55 years old and if they live longer and longer the pension providers will be seriously looking at this I bet as tables turned and be costing them then maybe??

 

[robs1]

Don't forget AI (owned by big tech) taking all the actual jobs that people currently get paid to do.

It has been said from the 1970's that robots and computers would be doing all the work and there would be no jobs but huge leisure time, yet here we are in 2023 with huge numbers of vacancies, of course the issue of so many not willing to work and living of the dole/sick pay is another argument

 

[Hilly]

It has been said from the 1970's that robots and computers would be doing all the work and there would be no jobs but huge leisure time, yet here we are in 2023 with huge numbers of vacancies, of course the issue of so many not willing to work and living of the dole/sick pay is another argument

Computers robots have to be made and installed And maintained etc thats just a starter for ten ..

 

[steveR]

And also remember people can claim work place pensions from 55 years old and if they live longer and longer the pension providers will be seriously looking at this I bet as tables turned and be costing them then maybe??

Interesting thought that... But I imagine the actuaries will be on top of every little wrinkle in the schemes...

 

[Still Farming]

Interesting thought that... But I imagine the actuaries will be on top of every little wrinkle in the schemes...

Yes.
Those that paid in fully and never claim.
Those that paid full in and live for 30 plus years claiming or drawing down.
Those that claim for years and never paid penny in etc etc scenarios.

 

[Exfarmer]

The true cost of pensions is the cost of bonds when the person retires. As interest rates rise bond prices fall and the pensioner gets a better retirement. Many defined benefit pension schemes were in trouble 2 years ago, when they were set up in the 80’s or 90’s interest rates were high and returns were promised which were impossible to pay without cross subsidies luckily that situation has turned round. This is why defined benefits has nearly disappeared from the private pension industry