• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Need advice regarding tax on withdrawing pension pot

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Need advice regarding tax on withdrawing pension pot

    Iím 57 have been unemployed for three and a half years and have income based jsa and housing benefit. I share a rented house with my ex partner. We have to move quickly (long story) and have poor credit a 6 yr old child and pets so itís hard finding somewhere.

    Out of the blue, this week, I have discovered a pension pot of £55,120 I had contracted out of serps decades ago and lost the documents. The company found me and have sent a statement.

    I have decided to use part of it to pay a years rent up front so we can move and also settle some outstanding stuff. I know I can take 25% out tax free.

    The pension is with One Family and they have advised that with this pot I canít just take some out, I have to take it all so it looks like I have to either transfer it and take a draw down from the new policy or take it all out , use what I need and put the rest in an ISA or something.

    My question is about timescales and tax. As I need the money quickly ( we have to be out of here by November) there appears to be insufficient time to get advice and follow the normal procedure to transfer (j spoken I a free pension adviser today who said the process could take 5-6 weeks)
    but if I take the whole lump sum of £55120 out I will pay emergency tax which could be 17£k which would be heartbreaking. I know an independent financial advisor is a good idea but I simply donít have the money to pay one.

    I havenít worked since January ( I did 10 hrs a week for 2 months so my jsa claim remained live) so as I understand it have my full allowance as a single woman.

    What can I best do?
    Tags: None

View our Terms and Conditions

LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.

Announcement

Collapse
2 of 2 < >

Warning


Scammers are after your pension pot.


They know you can now access your savings in new ways and will try to lure you with promises of upfront cash and one-off 'deals' with guaranteed high returns.


Learn how to spot the signs and give yourself the best possible protection against pension predators by following this five-step guide.
See more
See less

Court Claim ?

Guides and Letters
Loading...



Search and Compare fixed fee legal services and find a solicitor near you.

Find a Law Firm


Working...
X