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Listener Questions - Episode 25
Episode 589
It’s another packed and mixed bag of questions here on Meaningful Money. Today we deal with Seafarer’s pension contributions, tax-free cash on DB pension schemes and annual allowance calculations. Plus we give some thought to the evolution of the show…
Shownotes: https://meaningfulmoney.tv/QA25
01:10 Question 1
Hi Pete and Roger
Many thanks for all that you do. I am a long time podcast listener and happy client of Jacksons.
I am currently playing catch up on the current series and have a couple of thoughts on points raised in two episodes.
In episode 3 - there was a question on pensions and the answer included the point that when making contributions to a scheme they are generally paid net and the scheme reclaims basic rate tax from HMRC. Just to say that this is not always the case. My employer recently moved its scheme to an Aviva master trust. I wanted to make a lump sum co tribute. Ahead of the tax year end. However I found that the scheme could only accept gross contributions and I would have to reclaim the tax myself. As it was quite a decent sum and I preferred not to wait for the tax I made the contribution into a different scheme.
In episode 7 you had a question about moving abroad. The point we made that you can’t continue to contribute to UK tax favoured schemes when abroad which is correct. However there is another watch out in that ISAs in particular may be subject to income tax in the new country of residence - as they were when j lived in the US. It is therefore critical to get advice so you can make the right choices when moving abroad
All the best, Richard
05:06 Question 2
I have been listening to your podcast for the last 5 or 6 months. Like so many of your listeners, I have spent many hours catching up on your early episodes, no longer do I watch movies or drama series or wildlife programmes. I listen to Pete. Your advice has been priceless. However, I do have a question that I seemingly cannot find the answer to. Perhaps, I already know the answer, but am putting my head in the sand because I do not like it.
I know that the pension tax free lump sum is limited to £268,275 and I believe that this applies to the total taken from multiple pensions. I retired from the police in 2013 as a chief inspector. I took the maximum lump sum available at the time which was £206,000. I started a new job with the NHS and am paying into the NHS 2015 scheme. My projection on retirement from the NHS at age 67 suggests that I can expect a lump sum that combined with my police pension lump sum will take me well beyond £268,275.
I have seen some articles on line about lump sum protected allowances, but do not know if this is something I can access. Clearly, if all I can take from my NHS pension is £62,275 I will be paying 40% on a greater proportion of my pension in payment.
I suspect there may be others like me that maxed our their lump sum when first retiring and have gone on to further employment and have built up a tidy pension that has the potential to pay out another handsome lump sum.
Your advice is gratefully appreciated. Kind regards, John
11:25 Question 3
Hi Pete and Rog
Always a delight when a new episode comes out – I hope Rog is getting fairly compensated for his efforts!
I have been a keen listener for a number of years though until recently had lived outside of the UK, so while not everything was applicable (ISAs or pension contribution limits etc), the podcast has always been a valuable tool as I improve my personal finances
I have a question I was hoping you could clarify for me which relates to questions you answered on previous podcast Q&A.
Trying to keep it short but failing:
On a couple of occasions when talking about pensions there seems to be an assumption that your income will fall in reti
Published on 15 hours ago