Pension Decisions at 75 - Happy Birthday Mick Jagger
In between celebrating, Sir Mick Jagger may have to think about how certain rules in respect of his pensions have changed now that he’s reached age 75.
For a long time, you had to start drawing your benefits before age 75. This is no longer the case but the tax position does change. The fund can be paid as a death benefit with the recipient being taxed at their marginal rate. For example, Sir Mick could arrange for the beneficiaries of any remaining pension pot to be his 8 children or his 5 grandchildren or his 1 great-grandchild.
Looking at the Rolling Stones greatest hits, there are a number of pension lessons that we can take away.
- One of our top 3 questions every year is people asking how to “Start me up” a pension. This question is not as easy as you may think with the myriad of choices and charges.
- Your pensions are “Under my thumb”, where you may have choices about where the money is invested and how you take the benefits. Make sure you know what choices you have.
- There are over 50 different types of pension dating back many years. If you need someone to “Paint it black” and white in simple language, giving one of the pension specialists at TPAS a call is a good place to start.
- Whilst Sir Mick may not be looking for who is going to “Gimme shelter” in his later life, a pension is a very efficient way to save for your retirement to make sure that you can afford a roof over your head.
- “Miss you”- Do you have a pension from a previous employer or that was set up to contract you out of SERPS? The TPAS lost pension tool sets the expectation on if you may have a pension and where to go to find it.
- Your pension is worth a lot of money because retirement is expensive so have no “Sympathy for the devil”s who may be tempting you to transfer out of good pension schemes so that they can benefit from your money instead of you. Do not let “Wild horses” drag you away from your pension.
And remember, if you can’t get no satisfaction from your pension provider or scheme, you can speak to us for independent and impartial guidance.