6 Reasons Why You SHOULD Take Your Pension TAX- FREE CASH

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Information 6 Reasons Why You SHOULD Take Your Pension TAX- FREE CASH

Title	:	6 Reasons Why You SHOULD Take Your Pension TAX- FREE CASH
Lasting	:	10.52
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Hope you've enjoyed this video - let me know in the comments And if you are wondering why you might NOT want to take your pension tax-free cash, consider my previous video:brbr🔴 youtube/RvtFdEOZLnc - 5 Reasons NOT To Take Your Pension TAX-FREE CASH
Comment from : MeaningfulMoney

What difference growth would it make to turn off my life styling on my pension at 60yrs old on an 100k pension?
Comment from : Mark Line

Missed a lot of that because I haven’t a clue what “DB” and “DC” mean 🤷🏻‍♂️
Comment from : BlueShadow

Hi @meaningfulmoney are pension schemes worth it for part time workers as well? I’d really appreciate your advice on this Thank you!
Comment from : Pragati

How do I take cash free cash living in Australia?
Comment from : Iain Mackinnon

When we were dealing with an estate we found that the maximum tax free lump sum had been taken, so reducing the pension in payment However, the survivor benefits/widow's pension were based on the original sum , which was nice surprise So sometimes taking more cash isn't a bad thing for survivors depending on the scheme
Comment from : David Winpenny

What about using some of your tax free lump sum to invest in precious metals?
Comment from : Ed Newbery-King

Get your currency out of the ponzy scheme asap
Comment from : TwoWheelsGood

I have to get financial advice in order to get my private pension even though I know I want to take full pot amount Do you know how much this is am UK The form that has to be sent back to Royal London has to be filled in by Financial Advisor with their accreditations and numbers on it
Comment from : Adam

Just recived some tax free cash this morning I am effected by S24 and the tax free income dosent make me worse off I am staying fully invested and just takeing what I need per month I also own a company so my company will be paying more cash into my SIPP Pensions are great and you dont really know how good they are untill some cash comes into your account month after month
Comment from : MR Smith

Hi Pete, im going to be 55 soon and i have a total of 7 pensions from various employments I have one DC I moved to a private SIPP as it was only a money purchase scheme anyway Its now worth £45k and i was wondering if i could take the 25 tax free out of that (not triggering any tax liabilities) and would I still be allowed to continue paying onto my current employer's DC scheme? Or would i have triggered the rule where I can only pay up to £10k into pensions? At the moment my and my employers combined monthly contribution to my DC is £1850 so I don't want to take some cash out of an old SIPP and scupper my current contributions NOTE I'm aware things get complicated if I take more that 25 as that's a taxable withdrawal, so I do NOT intend to do that Any advice greatly appreciated 👍
Comment from : andrew kingdon

I think one really good reason to take all of your tax free amount (your own personal max amount) is because it's done, you can drip feed it into ISAs etc And once it's done labour can't reduce the amount you can take as you have already taken it you can still draw down your non tax free cash up to the £12500 tax free income level and use some of the invested cash tax free withdrawal you made and, in effect, pay no tax on either amount
Comment from : andrew kingdon

Wow, I did not realise pensions were so complicated
Comment from : Gary Ferrari

Reason 7 - one word - Porsche and yes that is a serious answer
Comment from : clive wilkinson

I took out some cash from my pension pot, I was taxed on it and had to pay vat on it as wellBe carefulbe well always:-)
Comment from : Steve Rickards

6:40 Ref reason #5 It is not logical to advise taking a lump sum simply to mitigate Tax within a DB pension The DB fund is inexhaustible so why be concerned about how much is taken on tax? Focus should be on getting the most net pay irrespective of taxation Lets face it, DB pension money is unlike a normal salary It is not money that has been hard earned through work, it does not diminish, so who cares how much tax is taken?
Comment from : Paul Kane

you should be able to use all unused isa years
Comment from : london man

Pete these are so helpful! Thank you! Do you have specific resources for British expats with private uk pensionpots?
Comment from : Isabel

If you have 3 personal pensions, do you get 25 tax free from each pension? Or only from 1 pension?
Comment from : rina kaur

I am 3 years away from taking the UK state pension with a potential combined pension pot around the national average of 64K Making the right decision is very tricky & this all sounds very complicated to me
Comment from : Architect of Echoes

LOOK OUT FOR HARD LEFT WING GOVERNMENTS THAT MIGHT WANT TO TAX YOUR CASH WEALTH TAX
Comment from : Kenneth Knight

Can you keep your DC pension pot as is after drawdown of 1/4 of the pot?
Comment from : Greengray Uniqueness

I am 61 and wish to take early retirement I have worked at the same higher education institution all my life, and been paying into the LPF since 1980 Do I have any protection regarding what was Rule 85, which existed until 2006?
Comment from : Jane Thomson

If you move abroad can you get your DB scheme salary paid into a foreign bank account? I know there is a problem with doing this with the state pension This may make up my mind in whether to take the tax free lump sum from my dB pension
Comment from : Anonymous

You have forgotten the main reasonbrIT'S TAX FREE!
Comment from : Kevin PEAF Smith

Another consideration is where there is a spouse or partner who has unused allowances that you could make work for you as a pair For example you could take tax free cash of £7,499 and pay it into the pension of your spouse or partner who perhaps could usefully have a larger pension pot At this level you would avoid the pension lump sum recycling rules and with better advice and planning perhaps even put in more than £7,500 You might also want to use their unused ISA allowance I am thinking mainly about circumstances where one partner has a large pension and possibly other taxable income, maybe pushing them into higher rates of tax and the other partner has much less income enabling a transfer of income from one to the other at a lower or even nil rate When I say income I mean projected future income as well as the here and now
Comment from : Brian Mills

Can you take the 25 tax free in several withdrawals over a period of time? For example if I withdrew 5 per year would this always be tax free?
Comment from : MrAlwaysBlue

Any advice for self employed?
Comment from : Dawinder Vasta

Porsche Carrera S 992 Cabriolet in Agate Grey 911

Take the money! You may not need all 25 but I believe we will be the last few allowed to get 25 tax free on entire pot Government will introduce threshold (heard 400k pot) that will allow you just 100k tax free
Comment from : Porsche Carrera S 992 Cabriolet in Agate Grey 911

This is unwatchable! you ramble on, just state the essential facts why give examples or for instance, it's verbose nonsense 🤪 there are way smarter people in the comments, you would drive someone mad with your verbose nonsense, please stop trying to give anyone advice, just read out the intelligent comments and you wouldn't be so annoying
Comment from : Chris Christofis

Just ordered your book The Meaningful Money Handbook Looking forward to reading it
Comment from : Seadipper 21

Do you think in the near future that government will stop the 25 tax free allowance?
Comment from : F M

Thanks A question on number 2 If you took tax free cash out of your db pension to buy an annuity, at some point does the returns on that annuity qualify or come into paying tax equations?
Comment from : Phil Garner

Absolutely right that everyone needs to analyse their own situation One small point you missed is utilising the 7 year period for PET to reduce IHT; for the few who are very well provided for this can help ( as can giving from spare income- an efficient form of IHT reduction for the fortunate )
Comment from : dan theman

Good one Pete
Comment from : Ryan Davies

Assuming the sums add up, can I take my DB pension at 55 and invest the tax free lump sum in my DC scheme with a view to retiring later?
Comment from : me

Take it before the torys do!
Comment from : Andrew Doig

at what point is a pension tax free? In the US a pension distribution is taxed as income
Comment from : Nyxo XO

Excellent video Pete I have another possible reason but may be missing something Assuming you could die before 75 and leave about half your remaining pot (still including 25 tax free) to your beneficiaries (which they now access all tax free), would it make sense to take all the tax free amount as soon as possible putting it in isas in the same investments? The entire amount grows at the same rate as before but you've now accessed all of the tax free portion earlier, increasing your income, whilst leaving only taxable income to your beneficiaries (same amount as before and again free of IHT)? Hope than makes sense
Comment from : I B

very helpful except my pension provider told me only 25 of the 25was tax free so had to take more out to allow for tax cost me a lot of money
Comment from : Dean Martin

So I just talked to a company who told me there is only annuity or drawdown and they've never heard of UFPLS
Comment from : Chris Davies

Taxation is protection, protected from counterfeit, laundering, and exercise of scrupulous schemes Protection from abusers SMEs 2022 onwards
Comment from : Rod1892

Hi Pete For mid 5 figure pot Your thoughts on moving all to a pension app? I stopped contributing as it was an old pension I'm still actively working nearing 55tia
Comment from : Abracadabra

Why do you think pensions are so great? brI just checked my work pension and for the period Dec 2021 to May 2022, the fund actually lost MORE money than was paid in my myself and my employer - we both pay in 6 The fund is actually worth over £500 less now, than it was in Dec 2021 ergo, everything paid in for that period has gone too
Comment from : Chris Davies

Thanks!
Comment from : Nancy Bashista

How about UFPLS ? If you don't need an immediate lump sum, you can spread your 25 tax free allowance over a number of years, boosting your income and retaining the option of taking a larger tax free lump sum at a later date, as your pension is not crystallised only the withdrawal
Comment from : Wharp Blast

you forgot to mention the difference between a DB and DC pension
Comment from : Chris Davies

If you had the choice of cashing in income paying ISAs or taking the 25‰ tax free pension cash, given its the same amount, which one makes more sense?
Comment from : martin gibbs

Another very helpful video - thanks
Comment from : andy philipson

Another reason worth a mention is if the individual plans to relocate outside the UK To use a popular example, once you become a fiscal resident in Spain (over 183 days) you are taxed on your worldwide income and there is no such thing as a pension tax free amount in their calculations Better to take you 25 in advance
Comment from : Roy Turner

It's all very individual and ultimately you are gambling on when you will die!
Comment from : Kevan Berresford

Great insight as always
Comment from : Mark Hankin

I am fortunate to have both a db and dc pension and am looking to retire in the next two years and the two alternate views in these videos will help me greatly brMany thanks Pete
Comment from : GARY REILLY

i had a company Pension final Salery , took full pension best thing i ever done , i like income better than a lump sum
Comment from : Dog Head

Big ups to everyone working effortlessly trying to earn a living Now is the right time If you really want to grow your money and attain financial independence Start investing, that's the best way to accumulate wealth Spent my 30s and 40s investing in stock and several multifamily real estates That’s the best I did for myself as it has consistently beaten my expectations of a return Lately, discovered ¢rypto, and life feels better
Comment from : m

How would you be expected to pay the tax if you get to 75 and you're over the lifetime allowance? brWould they take it out of your pension pot or would you have to pay it directly?
Comment from : sniltub

I bdid/b take my tax free cash plus my pension 5 years ago Best thing I ever did
Comment from : Brian

Very helpful information One important point for DB schemes is to double check is the impact of commutation on pension for surviving spouse In my case the spouse pension is the same whether I take the 25 or not I don't know if this is common place for all DB schemes
Comment from : Peter Bern

so confused, i a have DB scheme and DC scheme should you cash transfer DB scheme to DC everything i read good options for both eeeeeeeer
Comment from : sean webb

Sorry meant £130,000 in my pension pot
Comment from : Sean Mountford

Great videos very informative, I’m 55 this year and have a final salary pension with Tesco,I got make redundant 5 years ago after 20 years service ,also I had to give my ex wife 43,000 when I got devorced ,I owe my mum £20,000 she lent me to buy my home,there’s over 1000,000 thousand in my pension still, should I cash my pension in to pay my mum back many thanks Sean mountford
Comment from : Sean Mountford

Thanks for the great video, should you take the cash if you still have an amount outstanding on a mortgage? Thanks
Comment from : Mark Anthony

Everything are taxed, with taxes, protected from LAUNDERING, COUNTERFEIT, FAKE, and FRAUD Its excellent to be taxed, than to receive losses and INFLATION RATES from these FREE SCHEMES, Don't be a VICTIM 2022 onwards
Comment from : Rod1892

I find it very annoying when experts use initials like DB and DC and expect people listening for the first time to make any sense of it
Comment from : Derek Evans

Thanks Peter, Peter,my pension is called AVERAGE SALARY, what dose that mean please?
Comment from : Paul Gregory

Hi Pete what is a DB PENSION ?
Comment from : Paul Gregory

Hey Pete Can you perhaps do a video on options and considerations for if and when you come to receive a large sum of money, perhaps from a family member passing, for example? Should we be investing it, paying off mortgages, adding to pension pots etc? Thanks again, I really love your content, and you have really tuned me into thinking about my future (I'm 40 now and I'm already on the retirement train when it comes to planning)
Comment from : Chris

👍👍👍
Comment from : Claude 64

I have an AVC under £8000 would it effect my what I can put into my future pension contributions as I am still working and a tax payer if I cash it in now as I turn 55 soon Thank you
Comment from : mike jolley

The only issue my clients have is increasing their IHT liabilities by taking money out of a pension This is not relevant for those without kids as you say Pensions that die with you ought to be restructured using your services
Comment from : UK Property Tax Accountants

Great tips and useful concepts
Comment from : UK Property Tax Accountants

Hi Pete, thanks you once more for covering this topic from a different perspective, your figures were very close to what I have and I found the video very helpful and informative As you said there is no one fix for all as everybody has different types of pensions and different needs when they do retire, it is such a complex subject with life defining consequences But thanks to your video's, insight & knowledge you make things a little easier to understand
Comment from : Jackie Anderton

Another excellent vid cheers Has helped reinforce that I'm making the right choices re reducing tax liabilities
Comment from : Chris Emblen

Awesome stuff
Comment from : sean byrne

Enjoyed this video! Would it be possible to do a video on preparing your retirement finances from early(ish) in your career? I'm in my early 30s and would find that very useful to know what I should be thinking about Thanks!
Comment from : Matt Mitchell

Very helpful Great summary Pete and for illustrating why fortunately I have 0 reasons to take the tax-free lump sum Each individual’s need is indeed unique
Comment from : Craig Lawrance

The Scottish teachers' commutation is get £12 for giving up £1 income Okay, the income you give up is taxed at 21 in Scotland but if you assume the £12 keeps pace with inflation the break even is 14 years It's a pretty poor commutation I asked them if they'd do reverse commutation I'd give up the standard lump sum in return for the cash at the same rate They wouldn't do it!
Comment from : Craig Ross

Pete, I have a decent DB projected pension, and also have a SIPP that I may let grow as long as possible … my lump sum will include an automatic sum, plus an AVC lump option, and optional additional 12:1 commutation to make up remaining 25 lump sum Question: any advantage in taking max 25 to top up ISAs (mine and wife) and put remaining amount in SIPP? My thinking is that SIPP fund could transfer tax free to wife/children upon death I guess there is no more tax free withdrawal from SIPP
Comment from : Michael Cassel

But do beneficiaries have to be relatives? Can I tell my rich old friends with no kids it would probably be a good idea to nominate me?
Comment from : Emanuele Ziglioli

Great content Pete I fit into the Reason 6 category; DB pension, no spouse, no mortgage and three adult kids I'm almost 61, still working part time and paying AVCs and buying Company SIP shares monthly, and already drawing two index linked small pensions which help to subsidize my reduced hours income So when I retire (hopefully next year) I will not need the TF cash to support my retirement lifestyle, but I will want it in my estate to pass on What would be the best way to manage a 6 figure lump sum in order to maximize my kids inheritance? Thanks in advance if you reply!!
Comment from : George Baker

Very informative again I have to say you are helping me make my decision Thanks
Comment from : Andy Pandy

Excellent video Point 5 was really helpful I took my DB pension and now paying into a DC pension Always worried I am going to end up paying too much tax Point 5 helped me understand my position a lot better Thanks Pete
Comment from : Mo Patel

Thanks for developing this channel it’s been really helpful but seems to have a missing piece in the last couple of videos re taking or not taking cash What happens and what should you do if you have a completely uncrystallised DC pot when you reach 75brbrApologies if you have already covered this
Comment from : evaskitas1947

Ah am putting all my money into my pension atm, the company contributes the bear minimum, and i am paying into a vanguard lifestrategy 80 on top, with the idea being that when i come to retirement, the tax free lump sum, will become my buffer, and provide for 2-3 years of my needed income I plan to put this into an isabrbrI do not plan to retire for at least 10 years, maybe 15, and will revisit my plan, in 5 years, where I may start contributing directly into an isa, rather than the vanguard pension
Comment from : Raymond Breen

Thanks for the quick 2nd video Always like to hear both sides of the argument
Comment from : Ivor Eathorne

Yes using a isa pension fund to pay the mortgage off in 8-9 years funds making 5-10 per year mortgage is 2
Comment from : David Yeo

Your final bit of advice “not to regret decisions you can’t unmake” probably reflects the complexity of these decisions brI have another 15 years to go before retirement and am glad I don’t have to make these decisions now…😄
Comment from : Vinay

Will have to watch this again a couple of times Very interesting Quick question I might have missed it but can you take your tax free lump sum from your DB fund and put it in your DC pot or is that against the rules
Comment from : Narky

I really appreciate your videos Thank you
Comment from : Christine S

I'm 19 and working full time ( I started an apprenticeship at 16) what would be good advice for building my pension? Just keep working and foget about it for a few years? I invest monthly into the sp500 and I think I can beat my pension annual growth, would it be a good idea to pay less into my pension and more into my stocks and shares isa?
Comment from : Sam Jennings