Author Topic: Blow your Pension  (Read 3384 times)

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Offline grahamturner09

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Re: Blow your Pension
« Reply #10 on: March 22, 2014, 10:43:14 AM »
Yes you can still gift money and if you survive 7 years there is no tax to pay, my mother did this



Offline patrice

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Re: Blow your Pension
« Reply #11 on: March 22, 2014, 11:20:20 AM »
Is there not a limit of £7000 that can be gifted ?

Offline Colwyn

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Re: Blow your Pension
« Reply #12 on: March 22, 2014, 11:49:57 AM »
There is no limit to the amount of money you can gift to your children but if you die within 7 years they may have to pay Inheritance Tax on some of it. To be liable for tax your estate must be over £325,000 or £650,000 for a couple (a relatively recent change means the surviving partner retains the deceased partner's exemption). The tax rate is 40% on sums over this limit but this reduces pro-rata after you've survived the first three years.

You can also gift £3000 each year with no tax implications - e.g. if you had 3 children you could give them £1000 each (a couple could give double). In addition each grandchild can receive £250. If you didn't use these provisions in the previous tax year the exemptions roll over for one year only.

Offline patrice

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Re: Blow your Pension
« Reply #13 on: March 22, 2014, 13:31:00 PM »
Thanks for that info Colwyn

Offline Colwyn

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Re: Blow your Pension
« Reply #14 on: March 22, 2014, 13:43:46 PM »
Patrice, I should add that there may be special rules for people who are over 2000 years old. You'll need to ask Dr. Who.

Offline Rimms

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Re: Blow your Pension
« Reply #15 on: March 22, 2014, 14:22:28 PM »
For what it's worth, I think this is brilliant and I can't understand why it seems to have received such a lukewarm reception? Before I continue, I need to state my position that I'm already in receipt of my occupational pension and so the change won't directly affect me.

Over the years I've seen many people I know exercise their right to spend every penny they earn or either make benefits their lifestyle choice, stating that the 'state' will provide in my old age.

I have seen many people who have decided to invest in property for their old age, these assets are then liquidated as seen fit and if cash runs out then there is always pension credit to fall back on.

Finally there are those who have invested a fair proportion of their life long salary into work based pensions and once retired have been compelled by law to take what is often a very poor annuity, more often than not, any payment received from the annuity classifies you as a 'rich pensioner' where you won't get a penny in benefit from the state and of course if you need any sort of dedicated care, unlike groups 1&2 above, you will be forced to sell your home to fund your needs.

For me, this change puts everyone on the same footing, if you want to blow your cash and then fall back on the state, it's your choice, however, I doubt if many will. But at least, now you have the choice.




Offline patrice

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Re: Blow your Pension
« Reply #16 on: March 22, 2014, 14:51:38 PM »
Ha ha  :-[ Colwyn tried to change it but without success ...  : :)

Offline loz

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Re: Blow your Pension
« Reply #17 on: March 22, 2014, 15:22:10 PM »
But can the pension that was forced to Annuity last year be cashed, in retrospect to invest as we please? I think there will be phone calls next week. bet we can't get an answer.

Offline Rimms

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Re: Blow your Pension
« Reply #18 on: March 22, 2014, 15:28:52 PM »
In a word. No




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